How do you define innovation? Does the product or service have to be innovative?

In the context of the LuxAid Challenge Fund, an innovation is a new solution with the transformative capacity to accelerate impact. Innovation is about creating, finding, adapting and applying new ideas, approaches, products, services or methods to solve existing problems or address unmet needs. It is not limited to the creation of something completely new, but also encompasses the significant and creative modification of what already exists, or its use in a new context. Also, innovation can provide a solution that had no local demand because it was unknown, but which meets a real need in terms of impact.

To be considered “innovative”, the solution must be sufficiently distinct from other products, services or approaches already on the market in the country in question. This can mean distinctions in product/service design features to better meet needs, distribution model, customer segment (i.e. offering new products or services to previously underserved populations), business model (who pays and who benefits, price), product or service resilience (anticipating future developments).