what is innovation? One of the problems in managing innovation is variation in what people understand by the term. Drucker (1985 ) defines innovation as the specific tool of entrepreneurs , the means by which they exploit change as an opportunity for a different business or service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced. Betz (1997) assumes that innovation is to introduce a new or improved product, process, or service into the marketplace. Tidd et.al. (1997) define innovation as "a process of turning opportunity into new ideas and putting these into widely used practice". Afuah (1998) proposes that innovation is the use of new technical and administrative knowledge to offer a new product or service to customers. The product or service is new in that its cost is lower. its attributes are improved, it now has attributes it never had before, or it never existed in that market before