Sunday, October 14, 2007

Innovation and Productivity

In my work on innovation one topic that frequently arises is the definition of innovation. Innovation is not the same as invention. In contrast, innovation includes both value creation and value capture. This means that innovation is just as likely to be a service as a product or technology. In addition, innovation has a direct link on the economy in a way that invention does not necessarily have. The Economist's recent article & interview with Vijay Vaitheeswaran does a good job of covering these concepts.