Innovation theory starts by distinguishing innovation from invention, at the one end, and transformation and diffusion, at the other. It involves a dramatic and thorough change that widens the horizon of capabilities and a catalytic organisational restructuring that allows the new product, concept or idea to bring about the required transformation. Invention is often identified with the research and development of a product or idea, while innovation includes all the politics of its adaptation. An old world of principles, ideas and patterns dies while a new one is born. The cutting edge is where innovation lies, but it is more a process than an event. It encompasses all processes that lead to the transformation. It needs planning, foresight and strategic choices.