Peter Drucker defines Innovation in his book “Innovation and Entrepreneurship” as:
“Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation. And they need to know and apply the principles of successful innovation.”
I specially like this definition because (1) it makes clear that innovation is not just about high-tech, but about new business (new products, services, processes, etc.), (2) it states that innovation is not something that happens magically, but a disciple that can be learned and practiced and (3) to succeed you need to be proactive and search for the sources of innovation and exploit them.
If you have not read Peter Drucker’s “Innovation and Entrepreneurship”, I encourage you to do so, as in addition to this fantastic defintion of innovation, it provides great insights about innovation and its practice.