A new idea, method, or device.  The act of creating a new product or process.  The act includes invention as well as the work required to bring an idea or concept into final form.

Innovation is sometimes described as the generation and/or acceptance of ideas, processes, products and service that a relevant adopting unit perceives as new.  Innovation is the confluence of ideas, technology, markets, and money (sales).

For more New Product Development definitions see the NPD Resources Glossary.