Developing Capacity for Innovation in Complex Systems

2 The meaning of innovation

Introduction

In this chapter, we dive deep into the meaning of innovation as our notions of innovation have changed over time. Many (e.g. Darsø, 2003) consider Austrian economist Joseph Schumpeter, the father of innovation, and his work in the 1930s. However, innovation is not a new phenomenon and is arguably as old as mankind itself (Fagerberg et al., 2006).

Innovation can be defined as any new creation that generates economic value. Schumpeter’s (1939, 1942) perspective was driven by an economic background; as such, the value he spoke of was economic. Today, it makes sense to take a broader perspective. Drucker (1985) points to social innovation as a significant value-creating process, where innovation is based ...