What Value Creation Principles Does the Oslo Manual Emphasize?

The Oslo Manual emphasizes several key value creation principles in its definition and measurement of innovation:

What is Innovation?

Innovation is about creating something new or significantly improved that adds real value. It’s not just creativity – it’s about making useful changes that can be implemented in the real world.

Real Implementation

When we talk about innovation, we’re looking for more than just ideas on paper. An innovation must actually exist and be put into practice. This means a working product that customers can buy, or a new process that businesses actually use in their operations. Think of how smartphones went from concept to something that changed how we live.

Measurable Impact

An innovation needs to create a noticeable difference that you can actually measure or observe. Just like how electric cars made a measurable impact on reducing fuel costs and emissions, innovations should show clear evidence of improvement over what came before.

Types of Improvements

Innovations can make things better in several different ways. Like how modern streaming services improved not just how we watch content, but also made it more affordable and convenient compared to traditional cable TV.

Better Quality

Higher performance
More reliable
Longer lasting
More precise results

Better Experience

More user-friendly
More convenient
Innovative problem-solving
Improved satisfaction

Better Economics

Lower costs
More efficient production
Time savings
Resource optimization

Business Impact

Innovation isn’t just about the product or service – it’s about creating value in the marketplace. Like how food delivery apps created new business opportunities while solving customer needs in a new way.

The Complete Picture

Remember: a successful innovation doesn’t need to excel in every category. Just like how some premium products might cost more but provide such superior quality that customers still find them valuable, an innovation can focus on improving one key aspect while maintaining acceptable levels in others.

Innovation Framework

An innovation is a new or improved product or process (or combination thereof) that differs significantly from previous products or processes and has been introduced on the market or brought into use by the firm.

• Product innovation: A new or improved good or service introduced to the market.
• Business process innovation: A new or improved business process implemented within the firm.

Innovation can and should be measured.

Knowledge is a basis for innovation.

An innovation must be new or significantly improved compared to what was previously available.

An innovation must have potential utility or actual use.

Value creation or preservation are the goal of innovation.

An innovation MUST be implemented, which differentiates it from concepts like invention.

The manual provides a taxonomy of business functions that can be subject to innovation.

All developmental, financial, and commercial activities undertaken by a firm intended to innovate.

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