1. Definition of the Innovation Process
The term “innovation process” refers to the overall process in a company for conceiving and developing ideas and concepts into profitable products and processes for the company business(es). It is one of the 5 to 7 overall high- level business processes within the corporation,(e.g., Hammer) . In order to maintain, diagnose, and improve the process, both effectiveness and efficiency metrics are required to support decision-making. The relevance of using a process model to support the choice of metrics is discussed in the next section.

Note that in the context discussed herein, the assumption is made that the innovation model will be technology-based. That is, innovation is founded in the efforts of the R&D organization, and that the overall function of the process is the embodiment of technology in the products of the business of the corporation. Progress through the full innovation process will involve the efforts of all corporate resources, including marketing, engineering, manufacturing, and service and support functions.