Process innovation consists of the implementation of a new or considerably improved production technology, or new or considerably improved service supply or product delivery methods in an establishment. The result must be significant with respect to the level of production volume, the quality of the products (goods or services) or the costs of production and distribution.
The innovation must be new to an establishment. However, the establishment does not have to be the first to introduce the process. It does not matter if the innovation has been developed by its establishment or by another establishment. Simple organisational or managerial changes must not be included.