Introduction

Broadly speaking, there are three main types (categories) of innovation: process, product and institutional. They can be applied at the organisational (business), village or household levels. Sometimes a fourth category — service innovation — is identified, but generally service innovation is part of product innovation as it involves the enhancement of the product and its use. In this unit, service innovation refers to improvements in the manufacture and delivery of a product or improvements in the quality of the product itself.

Outcomes

On completion of this unit you will be able to:

• describe various innovations and how to identify what innovations are suitable for your context.
• explain classifications of innovation based on their context and applicability.

Terminology

Optimal:  Best; most likely to bring success or advantage.

Legislation:  The laws made by state or national governments; the preparation and enacting of those laws.

Shelf life:  The length of time for which an item is usable.

Subsidies:  Money granted by the state or a public body to help an industry or business keep the price of a commodity or service low.

Early warning system:  Warns people that something bad — for example, an earthquake or tsunami — is likely to happen.

Drought-tolerant:  Plant species that grow well in dry conditions.