<P> However, innovation processes usually involve: identifying customer needs, macro and meso trends, developing competences, and finding financial support . </P> <P> The Kline chain - linked model of innovation places emphasis on potential market needs as drivers of the innovation process, and describes the complex and often iterative feedback loops between marketing, design, manufacturing, and R&D . </P> <P> Innovation by businesses is achieved in many ways, with much attention now given to formal research and development (R&D) for "breakthrough innovations". R&D help spur on patents and other scientific innovations that leads to productive growth in such areas as industry, medicine, engineering, and government . Yet, innovations can be developed by less formal on - the - job modifications of practice, through exchange and combination of professional experience and by many other routes . Investigation of relationship between the concepts of innovation and technology transfer revealed overlap . The more radical and revolutionary innovations tend to emerge from R&D, while more incremental innovations may emerge from practice--but there are many exceptions to each of these trends . </P> <P> Information technology and changing business processes and management style can produce a work climate favorable to innovation . For example, the software tool company Atlassian conducts quarterly "ShipIt Days" in which employees may work on anything related to the company's products . Google employees work on self - directed projects for 20% of their time (known as Innovation Time Off). Both companies cite these bottom - up processes as major sources for new products and features . </P>

A significant amount of innovation yields no new products or services because