To best understand what Innovation is I think it helps to know what it is made of. Innovation has 2 components; Originality and Utility. It must be new and useful; there are various points of view to which of these two should be the prevalent however they both must exist. To bring it into context; you could have something that is 100% new but has no practical use, i.e. it doesn’t solve any problem so that would render it a novelty.