Innovation involves the successful value creating exploitation of new knowledge. Innovation should not be equated to invention; an invention may not necessarily lead to innovation. This distinction is made by Freeman (1982, p. 7), when he noted that: ‘an invention is an idea, a sketch or model for a new or improved device, product, process or system’ whereas ‘an innovation in the economic sense is accomplished only with the first commercial transaction involving the new product, process, system or device…’. Innovation can be given different meanings in different contexts. In the context of this chapter, innovation refers to anything that improves the economic performance of a firm.
Bridging the gap between academic accounting research and professional practice / Elaine Evans, Roger Burritt, and James Guthrie (eds.),
Chapter 3, pp. 31-50