What is Innovation

MIT 15.390 New Enterprises, Fall 2013
Instructor: Bill Aulet

Discussion of the essential difference between invention and innovation and the important role played by commercialization in innovation.

License: Creative Commons BY-NC-SA

[Rama-jgnj]

"Innovation is something that generates value for the world.
It makes something faster, better, cheaper. It gives someone some great satisfaction.
An invention is an idea, a technology, a patent in and of itself. It does not generate value."

[fernandoonosaki]

Great memories Bill Aulet! Still today I use the Innovation equation!!

[bestforyou]

the best example he chose to make the message across

[brightmalisoma]

innovation is the idea /technological which can do something

[m.fazlurrahman]

Yes!! Achan it’s directly from the book!!

Inventions : Electricity ( You are still in Florance Nightingale era- lamps.
Innovation: GE: you entered into “bulb” era!!

[brandonlandau]

Maybe MIT could employ the innovative concept of *pinning* a microphone on the speaker of this video to enable optimal audio clarity.

[monotheist..]

innovation equals invention times commercialization
faster better cheaper for impact
generate value
commercialization for the world is great for the whole world

great invention then commercialization

innovation is invention
to make greater value equation

[lisanvaccaro]

Who decides that this is the definition of “innovation” and not something else?

[svens.]

Do social innovations need to be commercialized before being able to be categorized as an innovation? The formula is nice to show the difference between invention and innovation - but the the focus on commercialisation does not cover all types of innovation...

[x-mando]

Should “Commercialization” be a must in the equation? Example: creating a revolutionary equipment meant to be used in the manufacture for a specific product. The added-value to the customer is the reduction of defects, and although the manufacturer could -commercialize- the new machine, decides not to. In any case, will only replicate the new idea on other applications.

[SumanV-nf]

Innovation equals to decoded entrepreneurship someway

[thattimestampguy]

0:23
0:42 Innovation = Invention WRONG
Innovation - Value Generation

1:28 Innovation = Invention * Commercialization 2:11

2:47 The Commercialization Aspect is the difficult part of Innovation

[monotheist..]

innovation driven
innovation for the world
invention for the world

innovation = invention + commercialization

generate value
faster better chaper

invention to solve world problems
thus commercialization and
make money out of it

[brightmalisoma]

why innovation but not sme/global business

[nelsonmayedo]

The Innovation does not add value to the customer. I don't think commercialization itself does either. Then if Innovation=InventionxComm, then we r missing some components in the equation that creates some value. THere should be some term that "modulates" the INvention and as a result we get the value. Not fully sure about my statement though. By the way, * is convolution not multiplication :).

[BinanceUSD]

Should have invested in Apple back then the writing was on the wall. The company in Silicon valley that takes other people's great ideas and make profits from them.

[barbossa]

I would say:
Innovation = invention x promoting

[timmi]

thankyou so much sir. love from Pakistan..

[JohnSWren]

Helpful for analysis, but is it the way people who actually start successful new businesses think about things? Do you have any data? Many think the entrepreneur is more like a Peace Corp volunteer, they have a passion for whatever it is they are trying to get to the market.

[drpaulchan]

Brilliant! Brilliant! Very clearly explained! Thanks MIT OpenCourseWare! #SecretsSelfmadeBillionaires