Product innovation
Product innovation
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Product innovation

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Product innovation

Product innovation is the creation and subsequent introduction of a good or service that is either new, or an improved version of previous goods or services. This is broader than the normally accepted definition of innovation that includes the invention of new products which, in this context, are still considered innovative.

Product innovation is defined as:

the development of new products, changes in design of established products, or use of new materials or components in the manufacture of established products

Numerous examples of product innovation include introducing new products, enhanced quality and improving its overall performance. Product innovation, alongside cost-cutting innovation and process innovation, are three different classifications of innovation which aim to develop a company's production methods.

Thus product innovation can be divided into two categories of innovation: radical innovation which aims at developing a new product, and incremental innovation which aims at improving existing products.

Advantages of product innovation include:

Disadvantages of product innovation include:

Popular theories of product innovation - what causes it and how it is achieved - include Outcome-Driven Innovation and "Jobs to be Done" (JTBD). JTBD Theory is used extensively as part of a methodical approach to product innovation postulating that users "hire" a product to do a "job" and that innovation can be achieved by providing a better way of getting a particular job done.

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