Incremental innovation refers to small, gradual improvements made to existing products, services, or processes. Instead of creating something entirely new, companies focus on enhancing what they already have. This can involve refining features, improving efficiency, or adding minor functionalities that make a product more appealing to consumers. This type of innovation is common in industries like technology and manufacturing, where companies like Apple and Toyota regularly update their offerings. By making these incremental changes, businesses can stay competitive and meet evolving customer needs without the risks associated with radical innovation.