Innovation is the process of doing new things or doing old things through new techniques. While creativity relates to the ability to conceive, innovation/means doing new things. Ideas have little value until they are converted into useful products or services. Innovation transforms creative ideas into useful applications. Hence, creativity is après-requisite to innovation.

Innovation implies doing new things or doing thing that are already being done in new ways. It may occur in the following forms:

(i)    Introducing a new manufacturing process that has not yet been tested and commercially exploited.

(ii)    Introduction of a new product with which the consumers are not familiar or introducing a new quality in an existing product.

(iii)    Locating a new source of raw material or semi-finished product that was not exploited earlier.

(iv)    Opening a new market, hither to unexploited, where the company products were not sold earlier.

(v)    Developing a new combination of means of production.

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