Types of Innovation

9 important questions on Types of Innovation

What is Incremental Innovation?

Squarely builds on established knowledge base and steadily improves an existing product or service offering.


-- Targets existing markets using existing technologies

What is Radical Innovation?

Derived from an entirely different knowledge base or recombination of existing knowledge bases with a new stream of knowledge.


-- Targets new markets using new technologies

What are "Winner-take-all" markets?

Markets where the market leader captures almost all of the market share and is able to extract a significant amount of the value created.
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What is the Innovation Ecosystem?

A firm´s embeddedness in a complex network of suppliers, buyers, complementors, etc. which requires interdependent strategic decision making

What is the Market-and-Technology Framework?

A conceptual model to categorise innovations along the market (existing/new) and technology (existing/new) dimensions

How to respond to Disruptive Innovation?

With Reverse/(frugal) Innovation

What is Reverse Innovation?

An innovation that was developed for emerging economies before being introduced in developed economies.


NOTE:  also called frugal innovation

What is Absorptive Capacity?

A firm´s ability to understand external technology developments, evaluate them, and integrate them into current products or create new ones.

Which factors led to a shift in knowledge landscape from Closed to Open Innovation?

- Increasing Supply and Mobility of skilled workers
- Exponential Growth of Venture Capital
- Increasing Availability of External options to commercialise ideas that were previously shelved or insource promising ideas and inventions
- Increasing global capacity of external suppliers

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