The chapter provides a conceptual analysis of the general notion of innovation, informed by empirical results and with an eye to practical applications. Innovation is distinguished from creativity on the one hand and entrepreneurship on the other, but defined broadly enough to comprise much more than technological inventiveness (for example social innovation). The popular two-step model of innovation processes is criticized and instead an integrated model is proposed as a superior alternative. The notions of macro- and micro-innovation are supplemented by a notion of still subtler, process-immanent improvements. Finally, the close relationship between innovation and learning is examined.