The chapter provides an overview of innovation, emphasizing its complexity, uncertainty, and the interplay between market forces and technological advancements. Innovation is described as a series of changes in a complete system, including hardware, market environment, production facilities, and social contexts. The process is characterized by the interaction of two distinct sets of forces: market forces (such as income changes and demographic shifts) and technological progress (such as advancements in science and engineering). Successful innovation requires balancing these forces, managing uncertainty, and addressing both technical and market needs. The chapter highlights the importance of feedback loops in the innovation process, which are essential for evaluating performance, formulating next steps, and assessing competitive position. It critiques the linear model of innovation, which treats research, development, production, and marketing as a smooth, linear sequence, arguing that this model fails to capture the complexity and feedback mechanisms inherent in innovation. An alternative model, the "chain-linked model," is proposed, which includes five paths: central-chain-of-innovation, feedback loops, knowledge-to-research links, direct links to and from research, and support for scientific research. This model emphasizes the iterative nature of innovation, where market needs and user feedback drive design improvements, and scientific knowledge and research support various stages of the innovation process. The chapter also discusses the role of design in innovation, distinguishing between "invention" and "analytic design." Invention involves creating a new means for achieving a function, while analytic design involves modifying existing components or designs to achieve new or improved tasks. The chapter concludes by noting the increasing role of digital computers in facilitating analytic design and the need for a more nuanced understanding of innovation to effectively manage and support it.The chapter provides an overview of innovation, emphasizing its complexity, uncertainty, and the interplay between market forces and technological advancements. Innovation is described as a series of changes in a complete system, including hardware, market environment, production facilities, and social contexts. The process is characterized by the interaction of two distinct sets of forces: market forces (such as income changes and demographic shifts) and technological progress (such as advancements in science and engineering). Successful innovation requires balancing these forces, managing uncertainty, and addressing both technical and market needs. The chapter highlights the importance of feedback loops in the innovation process, which are essential for evaluating performance, formulating next steps, and assessing competitive position. It critiques the linear model of innovation, which treats research, development, production, and marketing as a smooth, linear sequence, arguing that this model fails to capture the complexity and feedback mechanisms inherent in innovation. An alternative model, the "chain-linked model," is proposed, which includes five paths: central-chain-of-innovation, feedback loops, knowledge-to-research links, direct links to and from research, and support for scientific research. This model emphasizes the iterative nature of innovation, where market needs and user feedback drive design improvements, and scientific knowledge and research support various stages of the innovation process. The chapter also discusses the role of design in innovation, distinguishing between "invention" and "analytic design." Invention involves creating a new means for achieving a function, while analytic design involves modifying existing components or designs to achieve new or improved tasks. The chapter concludes by noting the increasing role of digital computers in facilitating analytic design and the need for a more nuanced understanding of innovation to effectively manage and support it.