Innovation has existed for many years in different environments, for example the invention of the telephone or the first television. Innovation is an important area of ​​study for many business leaders today. Business leaders are able to use innovation to be competitive. Innovation must be constantly monitored and sought after for any company to remain competitive. “The problem is that innovation involves a moving target: not only is there competition between players in the game, but the overall context in which the game takes place also continues to change,” (Tidd & Bessant, 2009). Organizations should need an appropriate strategic innovation plan in place to remain competitive. According to Freeman and Soete, 1997 innovation is “the first commercial application or production of a new process or product”, (Smith, 2006). Innovation can be narrowly identified as the invention of a new product. However this is not the only type of innovation. There are others that include: radical, incremental, process and system innovation. Innovation can be a process that has been redesigned to improve the performance of a good or service. This is known as incremental innovation. "In general, incremental innovation means exploiting existing forms or technologies", (Harvard business school press, 2003). Intel's Pentium processors of recent years are a good example of incremental innovation. Organizations use research and development labs to create new incremental innovations. Toyota was able to use such laboratories to build and create new automotive manufacturing processes. Innovation at one of the world's leading automakers has been a vital part of the organization's success. “However, fewer people know that Toyota started out with strong…paper-based…t-tech entrepreneurship. New York: ROUTLEGE. p1-2.Bessant, J, & Tidd, J (2007). innovation and entrepreneurship. Chichester: Wiley. p6-7. Prahalad, C. K., & kRISHAN, M. S. (2008). The new era of innovation. New York: McGrawHill. p4-5.Thomas, J.R. (1993). Development of new products. New York: John Wiley & Sons. p6-7.Morgan, M. J. and, Liker, J. K. (2006). The Toyota product development system. New York: Productivity Press. p120-121. Salaman, G & Storey, J. (2005). Synthesis. In: Salaman, G & Storey, J Managers of Innovation. Oxford: Blackwell Publishing. P147-151.Stamm, V. B. (2008). Managing innovation, design and creativity. 2nd ed. Chichester: John Wiley & Sons. p1-2.University of Michigan Business School (2003). Competing in a service economy. San Francisco: Jossey-Bass. p122-123.West, A (1992). Innovation strategy. Hemel Hempstead: Prentice Hall. P204-205.