**3.3 Synergy between the different innovation types**

It is important to note that firms have a portfolio of innovations ranging across the different types of innovation. Some products are in the product development phase others are in other phases like architectural, process, marketing, and service innovation phases. Organizational innovation is when the firm re-innovates itself to cope with market demands. Sometimes some firms may adopt different organizational structures for certain products, especially if the product is of such a nature that it is high risk and high reward. The risks are so high that it could have a catastrophic effect on the firm, so in such circumstances, the firm may spin out another entity to develop and take such products to market. This is referred to as open innovation, where innovation is a collaborative effort involving different entities.

It must, however, be also noted that the different types of innovation are not mutually exclusive; they are complementary to each other. In the PLC, NPD is 50% of the PLC; the other 50% is the rest of the life of the product, which requires process,
