What is the difference between incremental and radical innovation?

What is the difference between incremental and radical innovation?

Incremental innovation refers to small, gradual improvements to existing products or services, while radical innovation involves groundbreaking changes that create entirely new markets or disrupt existing ones.

Can you give me examples of each?

Sure! An example of incremental innovation is the regular updates to smartphone features. Radical innovation would be the invention of the smartphone itself.

Which type of innovation is more beneficial for businesses?

It depends on the business context. Incremental innovation can lead to steady growth, while radical innovation can offer significant competitive advantages but comes with higher risks.

How do companies decide which type to pursue?

Companies often assess market needs, their resources, and their risk tolerance. They may also analyze competitor actions and technological trends.

What are the risks associated with radical innovation?

Radical innovation carries risks such as high investment costs, market uncertainty, and the possibility of failure if the new product doesn't meet consumer needs.