Innovation can be categorized into several types, including product, process, and business model innovation. Product innovation involves creating new or improved goods or services, while process innovation focuses on enhancing the methods of production or delivery. Business model innovation changes how a company creates, delivers, and captures value, often leading to new revenue streams. Another type is incremental innovation, which makes small improvements to existing products or processes, and disruptive innovation, which introduces groundbreaking changes that can transform industries. Each type plays a crucial role in driving growth and competitiveness in the market.