What is the difference between innovation and R&D?

The article tackles the misconception between innovation and R&D. Although they are complementary, they are not the same. Research and development involve creating new products and services and is the first step in the development process. Innovation, on the other hand, is found in every field and adds value to customers and/or employees. Companies invest in R&D to obtain practical data and knowledge that can lead to improved products and services. However, the absence of innovation may lead to competition failure. The differences between R&D and innovation lie in their techniques, stages, and capacities. Innovation encompasses three stages, namely discovery, incubation, and acceleration. Firms that only focus on R&D may stockpile inventions without any assurance of commercialization. To strengthen innovation capability, businesses should focus on developing both new markets and technologies. Ultimately, the success of innovation lies in customer satisfaction and superior value delivery.