What Is the Difference Between Invention And Innovation
Invention and innovation are often used interchangeably in many organizations’ strategy rooms. While both terms do work side-by-side, they actually refer to different concepts.
Invention involves creating something entirely new that didn't exist before. Innovation, by contrast, takes inventions (new or existing) and commercializes them through practical implementation and market adoption.
Confusing these two terms can be detrimental to organizations. It can lead to strategic misalignment, where your teams would be chasing brilliant ideas without proper execution plans.
Let’s explore the difference between invention vs innovation terminology with some real-world examples.
What is invention?
Invention is about creating something brand new that the world hasn't seen before. It's that exciting technical or intellectual breakthrough, the "Eureka!" moment, where an idea turns into an invention.
Take the example of the light bulb, the transistor, or the airplane. These were not tweaks to any existing product, but entirely fresh concepts that reshaped how we live.
Thomas Edison nailed it when he said, “Genius is 1% inspiration and 99% perspiration.”
Invention often sparks from a flash of genius, but it demands hard work to bring the idea to life in a lab or prototype stage.
What is innovation?
Innovation picks up where invention leaves off. It's taking that brilliant new idea (or even an existing one) and turning it into something valuable for real people through implementation, commercialization, and widespread use.
Edison didn't just invent the light bulb. He innovated a full home electrical system that powers up homes.
Peter Drucker put it perfectly: "Innovation is the specific tool of entrepreneurs."
Innovation requires smart business models, marketing, partnerships, and getting customers on board. It's less about the lab and more about the marketplace, scaling the idea to create real impact and revenue.
What is the difference between invention and innovation
For organizations, understanding the difference between invention and innovation can lead to smarter decision-making. Both demand different skills, risks, timelines, and resources, so you can’t use the same strategies for both.
Inventors excel at technical problem-solving, while innovators are pros at market navigation and customer needs. Invention deals with pure technical risks (will it work?), and innovation caters to market risks (will people want it?).
Time horizons differ, too. Invention might take years or decades, but innovation aims for months to launch.
Most innovations flop not because the tech fails, but due to poor market fit. According to CB Insights, 35% of startups fail due to inadequate market research that results in a lack of market need1.
Invention without innovation is like a brilliant prototype gathering dust. Thousands of patents get filed each year, but fewer than 1% ever hit the market. That gap shows unrealized potential everywhere.
Therefore, knowing the difference between invention and innovation can help teams play to their strengths and make the most of their efforts.
Invention vs innovation: Real-world implications
Machine learning and neural networks are the best examples to understand the difference between invention and innovation. The technology was invented decades ago, backpropagation dates to the 1980s and transformers to 2017. These were primarily academic and industrial research breakthroughs.
Since 2022, products like ChatGPT, GitHub Copilot, and Midjourney have innovated AI by packaging these techniques into accessible, user-friendly tools that non-experts could use daily.
Another great example is the Tesla. Electric cars have existed since the late 19th century, and modern EV prototypes were developed throughout the 1990s and early 2000s. Tesla innovated electric vehicles by combining long-range batteries, over-the-air software updates, fast-charging infrastructure, and a premium consumer experience. This made EVs a mainstream aspiration in the global auto industry.
Similarly, electronic payments and online banking were invented in the late 20th century, allowing money to move digitally between institutions. Apple Pay and Google Pay innovated digital payments by making them instant, mobile-first, and integrated into everyday consumer behavior. These stories show invention plants the seed, and innovation grows the forest.
How innovation supports existing inventions in organizations
Organizations today brim with inventive engineers and researchers. Yet they consistently fail at the innovation stage.
According to estimates, around 70% of inventions never reach commercialization due to execution gaps, such as a lack of a viable business model, weak customer validation, or flawed go-to-market strategies. It’s not because your technology is poor.
Let’s say you’re a mid-sized manufacturer with a patented material that's stronger than steel but half the weight. Your invention works beautifully in lab tests, yet it doesn’t reach the users because you didn’t map customer segments, pricing models, or distribution channels.
That’s where innovation can support your invention. Innovators excel in performing market tests, partnering with early adopters, and refining the offering based on real feedback. These experts turn technical potential into revenue streams.
The strategic payoff is massive. You will experience lower R&D waste, faster time-to-market, and sustained competitive moats. Rather than betting everything on the next breakthrough invention, your organization can create reliable growth engines from what it already possesses.
After all, in business, the best innovation starts with someone else's invention.
Conclusion: Bridging the innovation vs invention gap
The difference between invention and innovation is clear. Invention creates breakthroughs, while innovation brings them to life. Edison didn't just invent a light bulb, but innovated it into an electrical ecosystem that powers the world today.
If you want to give your organization a competitive edge, you need to bridge the invention vs innovation gap.
Start by auditing your pipeline today. Find out which ideas gather dust for lack of business models or customer focus. Then, build cross-functional teams and prioritize commercialization. Don’t forget to measure revenue over patents to make the most of your efforts.
Work Cited
CBInsights. “The Top 12 Reasons Startups Fail.” 2021.