What are the most common R&D innovation strategies used in product development?

1 Incremental innovation

Incremental innovation is the most common and least risky R&D innovation strategy, as it involves making small improvements or modifications to existing products or processes. Incremental innovation aims to increase efficiency, quality, or customer satisfaction, without changing the core features or functions of the product. Examples of incremental innovation include adding new features, updating designs, or enhancing performance. Incremental innovation is suitable for mature or stable markets, where customers have well-defined needs and expectations, and where you need to maintain or defend your market share.

2 Radical innovation

Radical innovation is the opposite of incremental innovation, as it involves creating new products or processes that have no precedent or analogy in the market. Radical innovation aims to disrupt the existing market structure, create new customer segments, or generate new sources of revenue. Examples of radical innovation include introducing new technologies, creating new business models, or solving new problems. Radical innovation is suitable for emerging or dynamic markets, where customers have unmet or latent needs, and where you need to create or capture new market opportunities.

3 Architectural innovation

Architectural innovation is a hybrid between incremental and radical innovation, as it involves reconfiguring the existing components or subsystems of a product or process, while preserving the core functionality or concept. Architectural innovation aims to leverage existing capabilities, knowledge, or assets, while creating new value propositions or solutions. Examples of architectural innovation include changing the platform, interface, or delivery mode of a product or service. Architectural innovation is suitable for markets where there is a demand for variety, customization, or integration, and where you need to differentiate or diversify your offerings.

4 Modular innovation

Modular innovation is another hybrid between incremental and radical innovation, as it involves replacing or upgrading one or more components or subsystems of a product or process, while keeping the overall architecture or configuration intact. Modular innovation aims to enhance the functionality, performance, or quality of a product or service, without changing the customer experience or value proposition. Examples of modular innovation include adding new modules, components, or features to a product or service. Modular innovation is suitable for markets where there is a need for flexibility, scalability, or interoperability, and where you need to improve or extend your capabilities.

As you can see, there is no one-size-fits-all R&D innovation strategy for product development, and you need to consider various factors, such as your objectives, resources, capabilities, and market conditions, when choosing the best one for your situation. By understanding the different types of R&D innovation strategies, you can better align your R&D efforts with your product development goals, and create more value for your customers and stakeholders.