‘As a general definition ... innovations are novel changes in a system, which are performed and achieved for the first time in its development. This first-time aspect of a novel change - the development aspect - is an important one but … insufficient criterion for innovations; a more important one is that the development should lead to something qualitatively new which increases the efficiency of a certain system. Innovations provide better solutions to problems than contrived in the previous state. The decisive determinant of the innovative content of the new solution is its relation to the old one. It is the relation to previous solution approaches that determines the degree of innovation of a novel change.’

Innovation can come in various forms.  These include the following:

• Process-oriented innovations: these relate to developing:

     - new or improved methods;
     - content;
     - use of technology; and
     - approaches to integration in labour-market initiatives. 

Examples of process-oriented innovations include:

     - developing new training materials;
     - new or improved approaches to delivering training and guidance, and
     - new ways to combine approaches. 

• Goal-oriented innovations: these relate to developing:

     - new vocational qualifications;
     - new approaches to working with particular target groups; and
     - new ways of improving the transition into employment for particular target groups.

Examples include goal-oriented:

     - approaches involving new qualifications;
    - opening up new areas of employment for disadvantaged groups and individuals at -risk of             displacement in the labour market;
     - integrating accreditation systems; and
     - new approaches to re-engaging disadvantaged groups and individuals with education, training           and the labour market.        

• Context-oriented innovations: these relate to the political and structural frameworks that labour market interventions take place in.  Examples include developing:

     - local, regional and national networks;
    - new frameworks for and approaches to dissemination, information and awareness raising         activities; and 
     - steps to involve new partners and establish new working arrangements.

One of the greatest pains to human nature is the pain of a new idea. - Walter Bagehot

INNOVATION is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation. And they need to know and to apply the principles of successful innovation. - Peter F. Drucker