Which Activities Does the Oslo Manual Consider Essential for Innovation?

The Oslo Manual identifies several essential activities for innovation in businesses.

Key Innovation activities

The key innovation activities outlined in the Oslo Manual include:

Research and experimental development (R&D)
Engineering, design, and other creative work
Marketing and brand equity activities
Intellectual property (IP) related activities
Employee training
Software development and database activities
Activities relating to the acquisition or lease of tangible assets[4][6]

These innovation activities are not limited to traditional R&D but extend across various business functions.

Other organizational operations that can innovate

The manual recognizes that innovation can occur throughout an organization’s operations, including:

Production of goods and services
Distribution and logistics
Marketing and sales
Information and communication technology (ICT)
Administration and management
Product and business process development[4]

The Oslo Manual emphasizes that innovation activities should be intentional efforts to bring about improvements and create value for the firm. It acknowledges that innovation often involves the diffusion of existing technologies and practices across an economy, not just the creation of entirely new products or processes[1].

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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