For years, plenty of people have pointed out the
difference between innovation and invention, with a popular quote (attributed to way too many different people over the years) being that "invention is turning money into ideas; innovation is turning ideas into money." Basically, invention is coming up with a new idea -- innovation is successfully bringing a product to market in a way that people want. Where some people disagree is how important each of these stages are. Our position has been that
innovation is a lot more important than invention. Successfully bringing a product to market is what makes the world a better place -- because it satisfies needs in the market and expands the economy. There were music players before the iPod, but Apple innovated the iPod into more of a "must have" device. There were cars before Ford, but he innovated to make it affordable for the average person. This is one of the reasons why we have such trouble with the patent system as it's currently designed. It rewards invention, but makes innovation more difficult and expensive.
A new study supports this point by showing that in most companies executives are
a lot more worried about innovation than invention, saying that they're overwhelmed with ideas. It's successfully executing and putting those ideas into practice in a way that makes money that's so difficult. The study found only 17% of companies where execs were worried about not having the necessary ideas. Instead, most companies were greatly worried with taking those ideas and actually being able to bring them to market successfully. So once again, we're seeing that it's innovation that's the bigger challenge than invention. In fact, it seems that many companies feel that there are too many ideas going around -- and the real challenge is in executing and bringing those ideas successfully to market. So, why is it that our public policy is focused on just the invention process (of which there appears to be too much) while making it more expensive and difficult to execute and bring products to market (which is the real challenge companies are facing)?