Innovation vs Invention: What’s the Primary Difference?

For years, the term invention has been interchangeably used with innovation. This is probably due to their similarity in spelling and familiar usage.

However, invention vs innovation is quite distinct with different meanings. As a company, you can oftentimes only innovate a product since, for most items, the invention phase has already been completed.

In this article, we’ll highlight innovation vs invention in detail. We have also enlisted a few examples to help you better understand its concept, importance, and examples in the IT industry.

So, let’s get started.

Innovation vs Invention: Primary Difference

What Is Invention?

Invention refers to the creation of a new concept, procedure, machine, or product that doesn’t exist and has never been produced before using creative ability and critical thinking.

Inventions are the result of needs. When an industry is looking for a solution to a complex problem to make the process easier and perform it smoothly, the results are usually brand-new inventions.

What Is Innovation?

Innovation is the next stage of invention. It means modifying a product, machine, or procedure to meet recent needs.

With innovations, you look towards the future by improving the existing product. The focus of innovation is to add new benefits to the existing product.

Innovation vs Invention Importance


Invention is the creation of a new product or machine with a concept that has been undiscovered by the world. Its importance is undeniable and has been mentioned as follows:

  • Invention requires creative insight to follow, so you have to look around and produce results after assessing the need.
  • During the process of invention, you cannot guarantee the results. They are unexpected and never thought of.
  • To invent something, you need to have a good hold of scientific knowledge and skills to carry out the expected processes.
  • Since inventions consist of concepts that are new to the world, the results are exclusive and original.
  • Invention comes before innovation, so it is a building block that bridges you to make a better version of an existing product, device, or machine.


Innovation leads to producing results that better address the issue and offer a solution. It gives you the opportunity to stand out in the market by adding a feature that users need and are looking for.

  • Innovation allows you to make transitions with the passage of time. This way, the results align with the expectations and needs of the hour.
  • Innovation occurs with the rise of a new need or challenge in the industry.
  • Like invention, innovation is new. However, the concept is different, while the features of the product are advanced.
  • In the world of technology, it gives a futuristic approach and allows your company to scale and grow.
  • To innovate a product, you need a variety of skills, including critical thinking, creativity, and problem-solving.

Innovation vs Invention: Use of Strategy

Competitive Strategy

As a greenfield opportunity, the invention is building a product that doesn’t have a market yet. However, the users are looking for a reasonable solution to their problem – which can be solved by an invention leading to its ultimate success.

The idea behind a company’s invention is to stay ahead of the curve and get a competitive advantage. On the contrary, innovations have direct or indirect competition, and your competitors may take advantage here.

Growth Strategy

A company’s growth is directly proportional to the number of inventions it makes and its continued dedication to innovation. Once a product has been invented, you should watch the audience’s response closely and keep adding innovative features to it.

Making a growth strategy with your user’s needs in mind to stay relevant in the market and lead it can drive exponential growth. It can multiply the share you have, attracting new customers to your product.

Innovation vs Invention Examples


  • Augmented Reality

One of the biggest examples of invention is Augmented Reality. This term was unknown a few decades ago, but it’s now an invention – in fact, a great one.

It is a technology that combines computer-generated visual content and the real world. With the help of Augmented Reality, you can get a sound idea about how a new product will look in its actual place or position you want it to be.

Unlike virtual reality, it doesn’t take you to a different ecosystem – surrounded by a different place. However, it superimposes the virtual segments in your ecosystem.

Popular applications using Augmented Reality are Houzz, IKEA Place, and YouCam Makeup.

Related Article: 10 Innovative & Inspiring Examples of Augmented Reality in Marketing

  • Artificial Intelligence

In the middle of the 1900s, the term Artificial Intelligence was coined for the first time. It was a concept where machines took over the roles and responsibilities of mankind.

Today, a large number of companies are using it to their advantage to meet customers’ needs. One of the reasons why AI is so fantastic is because this technology is built considering the pattern of the human brain.

For instance, Amazon has stepped into the artificial intelligence industry with its voice assistant, Alexa. Similarly, Apple has integrated an AI face-detection feature for unlocking the iPhone.

  • Crowdfunding Websites

Late in the 1700s, the mode of funding from a large number of investors and businesses involved days or sometimes months of tenure. It was a long process with lengthy paperwork.

Fast forward to 1997, crowdfunding websites were launched. These websites are online platforms where investors can browse and donate the amount they want to different causes and businesses.

The idea behind this innovation was to ease the funding process by showcasing the case you have to a large community all at once. This approach saved businesses time and energy and allowed new startups to flourish.

A few examples of crowdfunding websites are RocketHub, GoFundMe, and Crowdrise.


  • Data Analytics

A company’s biggest asset is its user’s data. So, the highest priority small and large businesses on this date have is to keep it safe and secure. However, keeping the business’ database safe isn’t the only goal. Organizing and using it in the future for actionable insights is also crucial.

Besides managing, you need to take a step ahead in the near future with the power of data analytics. This innovation is quite popular nowadays, and companies offer data analytics as a service. These companies have data you would need tools and resources to gather otherwise. They can offer you deeper insights into information at more affordable rates.

Tesla and Spotify are the popular companies that are using this technological innovation in a novel way.

  • IT Automation

Automation is helping businesses grow with every passing day, making processes straightforward and quicker. This allows businesses to cut the cost of hiring employees. Due to the long list of benefits you get with automation – especially in the IT industry – a vast number of businesses are interested in and switching to this technology.

In fact, it has been estimated that 40% of large companies in the IT sector will adopt automation. They intend to improve scalability and push the boundaries of productivity to catalyze the process.

SysAid – an IT service management company – generates reports through automation. It also provides automated customer support, which has helped it grow significantly.

  • Cloud-Based HR

Cloud-based HR is also a good example of innovation in the IT industry. It makes the management and hiring process smoother and simpler. During the past couple of years, a few HR cloud services have been invented and innovated later on. These app services have simplified the hiring, onboarding, and training process significantly.

A big advantage businesses get through these apps is time and cost savings. By handing over the hiring role to them, you can focus more on business expansion and less on training sessions.

Some HR software platforms include Zoho People and Namely HR. These platforms are considerably more affordable and offer features like employee onboarding and self-service tools.

Innovation vs Invention: What is More Important?

Both invention and innovation have significant importance in the growth and development of a business. However, invention plays a primary role, while innovation is the cause-effect of the invention.

After analyzing the market gap, a new product is launched through the invention process. The new product made with creative insights addresses a problem no one in the market has dealt with yet.

However, a competitor can take over a business in the race by building a similar product and later on innovating it. Conclusively, innovation in a product line is important once you have invented a successful product.


Innovation vs invention is a completely different process, even though the terms are used interchangeably. However, they have different meanings, importance, and roots in different approaches.

Invention is creating a product that didn’t exist before. On the contrary, innovation includes modifying the invented product to meet people’s needs.

Tech companies are the biggest example of businesses implementing innovation to improve a product. They keep innovating their inventions to capture the market’s needs better and attract more customers.

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