In one of my dictionaries, a Gage Canadian Dictionary, the word 'innovation' is defined as:

1. A change made in the established way of doing things
2. The making of changes; act of bringing in new things or new ways of doing things: He is strongly opposed to innovation of any kind.

At the front cover of his book 'Innovation', Tom Gorman uses the following Peter Drucker quote:

"Innovation is the specific instrument...that endows resources with a new capacity to create wealth."

At Chapter 1, Gorman uses the title, 'Innovation = Problem Solving'. And, in a caption that appears to be a dictionary excerpt, Gorman provides the following definition:

in • no • va • tion

1. A new product, service, process, or approach to a problem
2. A new way of thinking about something
3. The act of innovating, as in "Innovation occurs in every culture"

I know from recent experience, the discussion of innovation can very quickly get deeply philosophical. Here are some questions, which capture some of the differences in the ways people think about innovation:

• Must innovation, by definition, be a physical/tangible thing? 
• Must innovation, by definition, be linked to change?
• Should innovation, by definition, be linked to problem solving?
• What's the difference between creativity and innovation?

Perhaps, creativity describes new things that can be enjoyed for their own sake rather than for any change they may bring about? If that is the case then change may be an important facet of the definition of innovation but of little or no importance when considering a definition of creativity?

In other words - perhaps we should acknowledge utility is less tangible for creativity and more tangible for innovation?

Perhaps, for creativity utility can be so nebulous it should not even be a facet of definition?

Are creativity and innovation mutually exclusive? Or, is one a subset of the other? If so then which one is the broader thing...which is closer to concept?

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Business and Innovation:

Overall, I'm wondering if one of the largest rifts between our thoughts about innovation is around technology. Must a business innovation contain some aspect of technology or can a business innovation exist independent of technology?

For business purposes, would it make sense to define innovation as 'a thing or action that solves a business problem'?

Maybe we should state innovation - a thing or action - must have the effect of creating a change...or, should we be more specific and state innovation must create a change of commercial value?

The 'change' part of that sort of definition is consistent with my Gage Canadian Dictionary. And change is simple and it is a broad enough thing (say, a concept) so it should not generate any confusion or controversy. However, the 'adding commercial value' part isn't so simple...it is a qualification but it is a subjective one. My Gage Canadian Dictionary does not express the nature of change it expresses in its definition of innovation. While we may want to assume Gage Canadian Dictionary intends the change to be positive rather than negative or of value rather than valueless, that isn't stated in my Gage Canadian Dictionary. In fact, the sample italicized in my dictionary definition - "He is strongly opposed to innovation of any kind" - provides a clear message that some people are opposed to innovation...presumably, that's the case because those people do not see innovation as either positive or value-adding. Or, perhaps the opposition is simply a resistance to change.

For business, could we start by considering the following type of definition:

          Business Innovation (def'n):

          A thing done or provided to add value by solving a customer's problem or satisfying a customer's need.

Embedded in this definition are:

1. A business innovation must be tangible...a thought or an idea isn't enough to be considered a business innovation. Only when that thought or idea is converted into physical reality - a product, a service of action, etc - can it be considered an innovation. 
2. An innovation in business begins with a customer need or problem...all business innovations should be traced to a specific, identified customer need or problem. 
3. An innovation in business will cause and be a change. That change will be measured in terms of value added from the customer's perspective...as a specific, identified customer need is satisfied or as a specific, identified customer problem is solved. 
4. So, to qualify as a business innovation the thing must be customer-centric. 
5. A business innovation need not be tied to technology. Technological innovations in business would be a subset of business innovations. 
6. Potential questions about 'direct' and 'indirect' value, as seen from the customer's perspective, questions about the ability to discover with precision customer's needs, and questions about the ability to measure the value added from the customer's perspective, etc. (Such is the essence and challenge of Marketing).

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If we can agree on a definition of Innovation then we will have a solid footing upon which we can build as we answer other important questions, such as:

• how do we want to define the relationship between innovation and entrepreneurship?
• how do we want to nurture and promote business-innovation processes in our workplaces?
• how do we place ourselves in our customers' shoes and with precision understand their needs and problems then deliver measurable value through innovation?