Distinguishing Three Types of Innovation

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Distinguishing Three Types of Innovation
Anneke Zwart, Student (University), Netherlands, Moderator
Christensen (2014) argues that investing in different types of innovation will influence markets and firms in different ways. Therefore it is important to make a distinction between the different types of innovations, and when assessing them to use appropriate metrics.
Basically, 3 different types of innovations exist:
1. PERFORMANCE-IMPROVING INNOVATIONS: Those innovations will replace old products or models with new and more effective ones. The products or models that are improved are substitutes, as a result that consumers will only buy the new one. Therefore, these innovations do not lead to the creation much more jobs.
2. EFFICIENCY INNOVATIONS: These innovations support firms and organizations to build and sell already established goods or services at lower prices to the same consumers. These innovations can be low-end disruptions (creating a new business model) or process advancements. Efficiency innovations have two important effects. They increase product...Sign up

Christensen at Oxford
Chuck Petras, Entrepreneur, United States, Member
Christensen gave a very insightful lecture at Oxford back in 2013 on these very topics. Give it a watch Sign up

Christensen at Oxford
Jaap de Jonge, Editor, Netherlands
Dear Chuck, could you please be more specific where in which of the 3 videos on that page Christensen discusses the 3 types of innovation? Many thanks...Sign up

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