In business and economics, innovation is often divided into five types:

Product innovation, which involves the introduction of a new good or service that is substantially improved. This might include improvements in functional characteristics, technical abilities, ease of use, or any other dimension.

Process innovation involves the implementation of a new or significantly improved production or delivery method.

Marketing innovation is the development of new marketing methods with improvement in product design or packaging, product promotion or pricing.

Organisational innovation (also referred to as social innovation) involves the creation of new organisations, business practices, ways of running organisations or new organisational behavior.

Business Model innovation involves changing the way business is done in terms of capturing value.