The difference between invention and innovation
Invention means creating a completely new idea or product. Innovation means turning that idea into something firms actually sell or use in production.
Real World
Scientists at Bell Labs invented the transistor in 1947, but it was Sony's innovation — commercialising it in the first transistor radio in 1955 — that transformed the technology into a mass-market product.
Exam Focus
Always apply both terms to the same example in sequence to demonstrate you understand the distinction, not just the definitions in isolation.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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