Innovation and value creation in a very long-cycle business: in a very long-cycle business model, it's critical to distinguish true innovation from novelty

OVERVIEW: As a pioneer in airplane engine manufacturing, Pratt & Whitney must innovate in a very long-cycle business, one in which the break-even point on an innovation is decades out. This requires the company to create new innovations before customers can even define the requirements for the next generation of engines. As a result, it's critical that the company distinguish between novelty and true innovation.