Learn in the textbookBasic Concepts of Competitive Strategy
DefinitionInnovation (イノベーション) is a change that produces new technology, new systems or new ways of doing business and brings new value to markets and society.
ExplanationIt is not limited to technology: besides changes that yield new products, it includes changes to how things are made or sold, or to the business model itself. It is one source of competitive advantage and can also open up new markets and demand.
AnalogyIt is like a new combination of everyday ingredients turning into a classic dish that everyone eats.
Memory hookIt comes from the Latin in (into) and nova (new): read it as making something new from within.