Tim Kastelle writes innovation is “not just having an idea—but executing it so that it creates value.” I like that he incorporates three key concepts: an idea, execution, and value creation. You’ll see below this is probably the closest to our definition.
“Innovation is the process of creating value by applying novel solutions to meaningful problems.”
The reason we believe it has utility is in the three explicit tests for “innovative-ness” we can apply:
Is it novel? The notion of novelty is baked right into the word “innovation.” If it’s not new, it’s probably more optimization than innovation.
Does it solve a meaningful problem? If not, maybe it’s art instead of innovation. That’s not to say art isn’t valuable, but it’s generally not designed to solve a problem. To us, innovation is.
Does it create value? If not, maybe it’s an invention rather than innovation. Inventions can lead to value creation, but usually not until someone applies them through innovation.