INNOVAREModule 11 · AI-Driven Innovation and Emerging Technologies

Case 1: No One Owns the Word

Two definitions of innovation, three lenses, and why there is no referee — the OECD measure, IDEO's unmet need, and MIT's lead user.

August 2026 · Case 1 of 6
As you read — hold this question

When someone says a product is ‘innovative’, which are they claiming — that it is new and countable, that it meets a real need, or that a user got there first?

3
three competing lenses on one word — policy, human-centred, and user/disciplined — with no single authority to referee between them.

Module 11 opens by refusing a single definition of innovation. The examinable point is that the OECD/Oslo-Manual measure, IDEO's human-centred need, and MIT's user-innovation view are three different instruments — and knowing which one you are holding is the skill.

The examinable core
The textbook version

Two definitions — and three lenses

The official definition (OECD/Eurostat Oslo Manual, 2018): innovation is “a new or improved product, service or process” that differs significantly from what came before. It is built to measure — to count innovation and sort it by type.

The human-centred definition (IDEO): innovation begins not with a product but with a person and an unmet need. One side measures innovation; the other makes it.

No single authority owns the word. The policy lens measures and rides the technology; the human-centred lens (IDEO) starts from a real person; the disciplined lens (MIT — von Hippel, Aulet) reminds us that users often innovate before any company does. Three lenses, no referee — and that mix is the point, not a weakness.

Carry this

There is no one definition. Name the lens you are using — policy (measure), human-centred (need), or user/disciplined (lead users) — and your analysis sharpens.

Map it to a real product
The rest of the story

The same innovation, read three ways

LensWhat it asksWhere it looks
Policy / Oslo ManualIs it new or significantly improved? Can we count it?Products, processes, patents, R&D spend
Human-centred / IDEOWhose need is unmet, and does this meet it?The person, the context, the job-to-be-done
User / MIT (von Hippel)Who solved this first — and was it a user?Lead users, modifications, workarounds
Framework hole — what the tidy definition misses
The Oslo Manual measures what has already happened and can be counted. It is blind to the need that has not yet been met, and to the user who has quietly solved a problem no company has noticed. Measurement is a rear-view mirror; the human-centred and user lenses look forward.
The lesson
The other side

Discovery, not invention

The idea running under the whole module: the valuable act is often noticing what was already there, not inventing from nothing. Newton did not invent gravity; he noticed it. Most of science works this way — and so does most innovation.

The other side

“Innovation” sounds like invention, but the durable kind is usually discovery — seeing the unmet need, or the pattern, that was there all along.

Quick recall — without looking back

Test yourself on this case

Question 1 of 3

State the OECD/Oslo-Manual definition of innovation.

“A new or improved product, service or process” that differs significantly from what came before (OECD/Eurostat, 2018). It is built to measure and classify innovation.
Question 2 of 3

How does IDEO's definition differ from the official one?

IDEO starts from a person and an unmet need, not a product. One definition measures innovation; the other makes it.
Question 3 of 3

What does the MIT / von Hippel ‘user innovation’ lens add?

That the people who use a thing very often innovate before any company does — lead users modify and solve first. It keeps the other two lenses honest.

Module 11 Video

Module 11 · AI-Driven Innovation & Emerging Technologies

Sources

Module content
BUSN9049 Module 11 — AI-Driven Innovation and Emerging Technologies (deck + videos). Flinders University, 2026.
Official definition
OECD/Eurostat, Oslo Manual (4th ed., 2018) — definition of innovation.
Human-centred
IDEO & the d.school — human-centred design (practised since the 1990s).
User innovation
von Hippel, Democratizing Innovation (MIT, 2005); Aulet, Disciplined Entrepreneurship (MIT).