Innovation, Invention and Entrepreneurs

Innovation, invention, and entrepreneurship are often used interchangeably, but they are distinct concepts with different requirements and objectives. In this article, Jeffrey Phillips from OVO Innovation sheds light on the differences between these terms and the implications of policymakers' choices. Entrepreneurs start new businesses, but they may or may not be innovative. Inventors create new products, but the value of an invention depends on its usefulness and profitability. Innovators turn new ideas into valuable and profitable actions, which can include new products, services, and customer experiences. Governments and educational institutions need innovation to stay relevant and effective, but most innovation policies focus on funding and supporting startups. However, most disruptive and incremental innovations come from large commercial organizations that require incentives, resources, and risk-taking. Therefore, policymakers should consider the needs and capabilities of different actors in the innovation ecosystem and avoid treating innovation, invention, and entrepreneurship as synonyms.