Pelz and Munson’ (1982)

The Innovation process is the process of generation of an idea or invention, and then conversion of that invention into a business or other useful application.

1. Idea stage (idea generation and crystallization): A problem is recognized, search for a solution is undertaken; alternatives are diagnosed; a prototype does not yet exist. This is the creative phase.
2. Design stage: An innovative solution or prototype is developed, adapted, or adopted, and detailed guidelines for action are established. Outcome of this stage is a working prototype and a sound conceptual business plan.
3. Implementation stage: The innovation is put into action; scale up operations begins. The innovation may be evaluated to decide whether to expand, modify, or discontinue it. A final detailed plan is required. (This is the entrepreneurial stage.)
4. Incorporation, or diffusion, routinization, or institutionalization stage:  The innovation becomes accepted as part of standard operating procedures and is no longer viewed as “an innovation.”  Incorporation, or diffusion, routinization, or institutionalization stage