The Wicked Problem of Confusing Innovation Definitions

The focus of this paper is firm level and organisational innovation. It identifies widespread confusion among practicing managers and researchers about what innovation really is arising from the difficulty of defining innovation, the rapid growth of the literature on innovation, and the influence of the most widely quoted definition; the 2005 OECD Oslo Manual definition.The paper outlines the historical use of the word; surveys definitions across economic, management, business and innovation literatures, and identifies highly influential definitions.An effective definition is parsimonious, picks out any central identifying characteristics of what is being defined and includes distinguishing characteristics. Analysis of the Oslo definition shows why it has contributed to confusion about innovation; the main reasons being that it does not distinguish innovation from other value adding change, including the adoption of innovations. The confusion has led to cynicism about its value, with consultants describing continual improvement as innovation, and companies overestimating their innovativeness. The paper suggests steps towards more effective definitions and concludes that the OECD or standard setting bodies are best placed to tackle the problem and that academics can contribute by ensuring that their definitions are effective