An innovation is a new or improved product or business process that differs significantly from the legal unit's previous products or business processes and which has been implemented on the market.
Two kinds of innovation are distinguished : product innovations (goods or services) and business process innovation (including organizational and marketing innovations).
- Product innovation includes significant design changes and digital goods or services. It excludes the resale in the same condition as new goods or services and changes of an aesthetic nature;
- Business process innovation concerns production and development methods, logistics and distribution, information and communication systems, administrative tasks and accounting, procedure organisation, supplier relationship management, work organisation, decision-making processes, human resources, marketing, packaging, pricing and after-sales service.
Both categories of innovation are in compliance with the 4th edition of the Oslo Manual, The Community Innovation Survey is based on it, and is standardized at European level.