Innovation has emerged as a crucial factor for growth and even survival in today’s rapidly changing world. The growing importance of innovation has led to an increase in academic literature focusing on the subject. However, despite the growing interest, innovation remains a complex and often misunderstood concept. This arises from the overuse and misuse of the term as a buzzword. To address these issues, this chapter aims to simplify and clarify the concept of innovation by examining various definitions in current literature. Through the examination, we identified six key elements that characterize the term: novelty, means, action, context, form, and outcome. Furthermore, we explore foundational aspects of the innovation concept, such as its models, processes, and types. This comprehensive review seeks to generate a common understanding of innovation, enabling future studies to build upon a more solid foundation.