‘Joseph Schumpeter’s gales of creative destruction’ shows how innovation is creative and beneficial—bringing new industries, wealth, and employment—and also destructive of some established firms, many products and jobs, and the dreams of failed entrepreneurs. Innovation is essential for competitive survival. Most innovations are incremental improvements—providing new models of existing products and services, or adjustments to organizational processes, but most attempts at innovation fail. Organizations rarely innovate alone: they do so in association with others, including suppliers and customers. The various models and theories of innovation are discussed, concluding that understanding the time dimension in innovation is critical. How innovations are consumed and diffused is also considered.