Product innovation is the creation and subsequent introduction of a good

Good (economics and accounting)

In economics, a good is something that is intended to satisfy some wants or needs of a consumer and thus has economic utility. It is normally used in the plural form—goods—to denote tangible commodities such as products and materials....

 or service that is either new, or improved on previous goods or services of its kind. This is broader than the normally accepted definition of innovation

Innovation

Innovation is the creation of better or more effective products, processes, technologies, or ideas that are accepted by markets, governments, and society...

 to include invention

Invention

An invention is a novel composition, device, or process. An invention may be derived from a pre-existing model or idea, or it could be independently conceived, in which case it may be a radical breakthrough. In addition, there is cultural invention, which is an innovative set of useful social...

of new products which, in this context, are still considered innovative.

Introduction

Product innovation is defined as:
Thus product innovation can be divided into two categories of innovation: development of new products, and improvement of existing products.

New product development

New product development describes the complete process of bringing a new product or service to market. There are two parallel paths involved in the process: one involves the idea generation, product design and detail engineering; the other involves market research and marketing analysis.

Improvement of existing products

This includes, but is not limited to, improvements in functional characteristics, technical abilities, or ease of use.