Incremental and Radical Innovation

In recent years, the importance of innovation in business cannot be emphasized too much. Along with rapid economic development, the cooperation having innovative ability enables them to own a place in this competitive society. In order to achieve the goal of survival, the firms need to understand the different types of innovation from incremental innovation and radical innovation for those firms who guarantee with the product quality, the lower cost and increasing profits. Following this essay, the difference between incremental and radical innovation are the distinctness of change level of technology and the difference of effectiveness. Following this essay, the effectiveness of two different types of innovation and an example of each types would be explanatory.
Innovation can be used in invention or improvement of products, production process, organization and staff creativity. According to the change level of technology , there are different types of innovation, one is incremental innovation and the other is radical innovation. Utilizing which types of innovation depends on what kind of conditions does a cooperation faces. Different consequence would be reached while adopting these two types on innovative system. To begin with, the definition of incremental innovation is 'doing what we do but better' (Tidd, Bessant, 2009, p.27). It usually bases on improvement or boost the existing technology, products or process for maintaining the competitiveness of specific market. Adopting incremental innovation could results in enormous cost saving through upgrading or improving old products or service. (Stamm,2003,p260) . In terms of reduction of inefficiencies and waste, which could benefit company from saving money, resources or time. Also this effectiveness from incremental innovation could benefit not only cooperation, but also customers. For example, a famous US airplane company - American Airlines Incorporated (AA). In 1986, when AA had faced a downturn trend with