Innovation in Business IELTS Reading: Translation & Detailed Explanations

Innovation is often misunderstood as grand “explosions” of genius or sudden flashes of brilliance. In reality, however, business innovation is a persistent journey, filled with trial and error and constant connectivity. The reading passage “Innovation in Business” takes you from the myths surrounding Thomas Edison and the controversial leadership style of Steve Jobs to modern-day consulting models.

This is an ideal resource for practicing IELTS Reading question types such as YES/NO/NOT GIVEN, Multiple Choice, and Sentence Ending Matching. Join ECE as we read, analyze, and break down the answers to this passage to help you achieve a sustainable boost in your Reading band score.

Reading Passage

INNOVATION IN BUSINESS

Innovation describes the way that we develop new ideas, products, and approaches, and it is one of the most vital human endeavors. Over the history of humanity, innovation has made life better in so many different ways. It is part of human nature to recognize the benefits of innovation; however, the majority of us have little comprehension of the processes that actually lead to innovation occurring. This is a frequent topic for discussion in journals and university lecture theatres. However, in company boardrooms across New Zealand, the term is heard far too frequently, and more caution should be applied. Certainly, a recent international survey showed that the idea of innovation is so broad as to appear almost meaningless, with different sectors of the business world—or different divisions inside the same business—often defining innovation in their own way.

While there is an obvious attraction to the new, innovation is not always about large-scale research and development projects or revolutionary business models; it can be on a small, highly localized scale and involve a step-by-step approach. The famous case study of the drinks company Lucozade shows it can be as simple as adding a screw top to a bottle. This carefully managed change in packaging shifted the public perception of the product from a medicine to a sports drink, and Lucozade profited handsomely, clearly showing their approach was successful. So what steps can businesses take to keep ahead in the innovation game?

There seems to be a widespread belief that the world’s best ideas are sudden and intuitive. Thomas Edison supposedly invented the light bulb with a sudden moment of clarity, but in fact, the book Edison: His Life and Inventions shows that Edison’s own inspiration usually resulted from laborious experimentation, rather than a moment of genius. Thus, business managers are at risk of overestimating the pace of development while underestimating the amount of perseverance needed. This is why we must reject the false assumption that innovation is just a moment of brilliance waiting to strike.

No exploration of innovation is complete without mention of Steve Jobs, the late chief executive officer (CEO) of Apple. No one encapsulated the creative essence of Silicon Valley, the home of many global tech companies, better than Jobs, but he has also been accused of arrogance. Jobs’ managerial approach often imitated his co-workers but, in part, it was the fuel for his visionary innovations. He felt it his duty to make society a better place, but his egotistical behavior could have undesirable consequences, too. Jobs’ former employees have suggested this type of demanding behavior affects sickness rates and group morale, which in turn may squash creativity and innovation.

In his 2011 TED (Technology, Entertainment, Design) Talk, economist Tim Harford made this statement: “Show me a successful complex system, and I will show you a system that has evolved through trial and error.” It sounds like common sense, and some commentators have claimed Harford’s TED Talk was not persuasive because it was stating the obvious. But he responds that a trial-and-error approach is not all that obvious, because society expects all problems to have a quick and simple solution. Harford is right to point out that both consumers and investors expect consistent and clear breakthroughs. But the value of step-by-step innovation is often underrated, and failure may, in fact, be crucial to eventual success.

Former chief solutions officer at Yahoo, Tim Sanders, believes that innovation is only “little ideas that combine with other little ideas that improve themselves into game-changing ideas.” This snowballing effect has similarities to the phenomenon that author and broadcaster Steven Johnson calls the “hummingbird effect” of innovation. This points out that progress in a specific area or discipline can end up triggering small but significant developments elsewhere entirely. A good case to cite in support of this universal truth would be Gutenberg’s printing press, which was revolutionary in itself for making books accessible to the masses. However, the press also affected an unrelated industry by causing a rise in demand for reading glasses.

This highlights the wider idea of connectivity, which is an essential component of innovation. When Kode Biotech won a recent innovation award, CEO Steve Henry had this to say: “Most people think innovation is invention, but they don’t understand that innovation is the conversion of invention into something useful.” This is particularly true when it comes to Kode’s highly specialized use of nanotechnology. Henry says that Kode cannot chase all the opportunities it has created. Instead, Kode’s approach is to collaborate with similar nanotechnology businesses, which take its innovations and develop them into commodities that can be sold in the marketplace.

Innovation can be hectic and disorganized, but that is the way that radical new ideas sometimes come about. But, for established businesses, the disorderly nature of innovation can seem discouraging. Previously Unavailable, a specialist innovation consultancy, says that while 84% of businesses consider innovation critical to their future, only 6% are satisfied with their innovation efforts. Previously Unavailable uses a process called Black Box, which was developed following a study at Harvard Business School. Black Box was formed to overcome the barriers that prevent innovation in larger organizations. Using this unique system, Previously Unavailable will lease a team of innovation experts on a short-term basis to client organizations to assist with conceiving, developing, and launching new products and business innovations. It seems probable that this sort of innovation consultancy will become increasingly common, just as businesses already employ specialist consultants for legal, financial, or marketing services.

Questions

Questions 27-30

Do the following statements agree with the claims of the writer in Reading Passage 3?

In boxes 27-30 on your answer sheet, write:

YES if the statement agrees with the claims of the writer

NO if the statement contradicts the claims of the writer

NOT GIVEN if it is impossible to say what the writer thinks about this

27. Most people understand how innovation happens.

28. The word “innovation” is overused in business in New Zealand.

29. There are many interpretations of what innovation means in business, according to one global study.

30. Research and development projects have a higher priority today than in the past.

Questions 31-35

Choose the correct letter, A, B, C, or D. Write the correct letter in boxes 31-35 on your answer sheet.

31. What is the writer doing in the third paragraph?

A. Criticizing the conclusions of one publication

B. Praising the contribution of a famous inventor

C. Dismissing one common idea about innovation

D. Suggesting that innovation changes over time

32. What is the writer’s main point in the fourth paragraph?

A. Each industry will innovate in its own way.

B. There are pros and cons to strong leaders.

C. Some individuals are more innovative than others.

D. Leadership requires building teams that work together.

33. The writer refers to Gutenberg’s printing press in order to:

A. Compare how two different innovations developed.

B. Illustrate an exception to his point about innovation.

C. Show why one approach to innovation was correct.

D. Give an example of a general rule about innovation.

34. What is the writer’s main point in the seventh paragraph?

A. Companies should cooperate to turn ideas into products.

B. A company tends to make profits from its own innovations.

C. Science and business can often have common goals.

D. Competition between businesses produces innovation.

35. According to the writer, companies like Previously Unavailable:

A. Have published valuable research about innovation.

B. Help companies recruit people with skills in innovation.

C. Run university courses teaching innovation skills.

D. Can be hired to give businesses advice about innovation.

Questions 36-40

Complete each sentence with the correct ending, A-G, below. Write the correct letter, A-G, in boxes 36-40 on your answer sheet.

36. A book about the life and work of Thomas Edison suggests that

37. People who have worked for CEOs like Steve Jobs claim that

38. Critics of Harford’s 2011 TED Talk argue that

39. Steven Johnson’s hummingbird effect proposes that

40. Kode Biotech CEO Steve Henry believes that

A. Innovators do not get enough credit for their own ideas.

B. Innovation may influence a completely different field.

C. Expressing what everyone already knows is pointless.

D. Innovation can be enhanced through collaboration with similar companies.

E. Innovation requires a great deal of hard work.

F. Copying ideas that already exist is not true innovation.

G. Certain personality types can limit innovation.

Full Translation of the Reading Passage

Innovation in Business

[Paragraph 1]

Innovation describes the way that we develop new ideas, products, and approaches, and it is one of the most vital human endeavors. Throughout human history, innovation has improved life in many different ways. Recognizing the benefits of innovation is part of human nature; however, most of us have little understanding of the processes that actually lead to innovation. This is a frequent topic of discussion in journals and university lecture halls. However, in company boardrooms across New Zealand, the term is heard far too often, and more caution should be applied. Certainly, a recent international survey showed that the concept of innovation is so broad that it appears almost meaningless, with different sectors of the business world—or different divisions within the same business—often defining innovation in their own way.

[Paragraph 2]

While the new always has a distinct appeal, innovation is not always about large-scale research and development (R&D) projects or revolutionary business models; it can be on a small, highly localized scale and involve a step-by-step approach. The famous case study of the drinks company Lucozade shows it can be as simple as adding a screw top to a bottle. This carefully managed change in packaging shifted public perception of the product from a medicine to a sports drink, and Lucozade profited handsomely, clearly showing that their approach was successful. So, what steps can businesses take to lead in the innovation game?

[Paragraph 3]

There seems to be a widespread belief that the world’s best ideas are sudden and intuitive. Thomas Edison is said to have invented the light bulb through a sudden moment of clarity, but in reality, the book Edison: His Life and Inventions shows that Edison’s own inspiration was usually the result of a laborious process of experimentation, rather than a moment of genius. Therefore, business managers risk overestimating the pace of development while underestimating the perseverance required. This is why we must reject the false assumption that innovation is just a moment of brilliance waiting to strike.

[Paragraph 4]

No exploration of innovation is complete without mentioning Steve Jobs, the late CEO of Apple. No one captured the creative essence of Silicon Valley, the home of many global tech companies, better than Jobs, but he was also accused of arrogance. Jobs’ managerial approach often imitated his peers, but in part, it was the fuel for his visionary innovations. He felt it was his duty to make society a better place, but his egotistical behavior could also lead to undesirable consequences. Jobs’ former employees have suggested that this type of demanding behavior affected sickness rates and group morale, which in turn could stifle creativity and innovation.

[Paragraph 5]

In his 2011 TED Talk, economist Tim Harford made this statement: “Show me a successful complex system, and I will show you a system that has evolved through trial and error.” It sounds like common sense, and some commentators have claimed that Harford’s TED Talk was unpersuasive because it stated the obvious. But he responds that a trial-and-error approach is not that obvious, because society always expects every problem to have a quick and simple solution. Harford is right to point out that both consumers and investors expect consistent and clear breakthroughs. But the value of step-by-step innovation is often underrated, and in reality, failure can be a key factor leading to eventual success.

[Paragraph 6]

Former chief solutions officer at Yahoo, Tim Sanders, believes that innovation is just “little ideas that combine with other little ideas to improve themselves into game-changing ideas.” This “snowball effect” has similarities to the phenomenon that author and broadcaster Steven Johnson calls the “hummingbird effect” of innovation. This points out that progress in a specific area or discipline can end up triggering small but significant developments elsewhere entirely. A good example supporting this universal truth is Gutenberg’s printing press, which was revolutionary in itself for making books accessible to the masses. However, the press also affected an unrelated industry by causing a rise in demand for reading glasses.

[Paragraph 7]

This highlights the broader idea of connectivity, which is an essential component of innovation. When Kode Biotech won a recent innovation award, CEO Steve Henry said this: “Most people think innovation is invention, but they don’t understand that innovation is the conversion of invention into something useful.” This is particularly true when it comes to Kode’s highly specialized use of nanotechnology. Henry says that Kode cannot pursue all the opportunities it has created. Instead, Kode’s approach is to collaborate with similar nanotechnology businesses, which take Kode’s innovations and develop them into commodities that can be sold in the marketplace.

[Paragraph 8]

Innovation can be chaotic and disorganized, but that is how radical new ideas sometimes come about. However, for established businesses, the messy nature of innovation can seem discouraging. Previously Unavailable, a specialist innovation consultancy, says that while 84% of businesses consider innovation vital to their future, only 6% are satisfied with their innovation efforts. Previously Unavailable uses a process called Black Box, which was developed following a study at Harvard Business School. Black Box was formed to overcome the barriers that prevent innovation in larger organizations. Using this unique system, Previously Unavailable leases a team of innovation experts on a short-term basis to client organizations to assist with conceiving, developing, and launching new products and business innovations. It is likely that this type of innovation consultancy will become increasingly common, just as businesses already hire specialist consultants for legal, financial, or marketing services.

Summary of Academic Vocabulary in the Passage

Detailed Answer Explanations

Questions 27-30: YES/NO/NOT GIVEN

27. NO: The question states “most people understand.” Paragraph 1 notes: “…the majority of us have little comprehension of the processes…” (the majority understand little). -> Contradicts the text.

28. YES: Paragraph 1 notes: “…in company boardrooms across New Zealand, the term is heard far too frequently…” (far too frequently ~ overused).

29. YES: Paragraph 1 mentions an “international survey” indicating that different sectors/divisions define innovation in their own way -> implies many interpretations.

30. NOT GIVEN: Paragraph 2 mentions that innovation is not always about large-scale R&D projects, but it does not compare the priority of R&D between “now and the past.”

Questions 31-35: Multiple Choice

31. C: In paragraph 3, the author mentions the common belief about Edison (sudden and intuitive) only to reject it (“we must reject the false assumption…”). This is dismissing a common idea.

32. B: Paragraph 4 says Jobs was a creative genius but also arrogant, and his behavior could stifle group creativity. The author presents both the pros (fuel for visionary innovations) and the cons (undesirable consequences) -> Pros and cons.

33. D: The author uses Gutenberg’s printing press to prove a “universal truth” about how progress in one area triggers development in another (the hummingbird effect). This is an example of a general rule.

34. A: Paragraph 7 quotes the CEO of Kode Biotech regarding “collaborating” with similar businesses to turn inventions into useful commodities.

35. D: The final paragraph describes Previously Unavailable as an “innovation consultancy” that leases experts to assist clients -> They are hired to provide advice/support.

Questions 36-40: Sentence Ending Matching

36. E: The book about Edison points out that inventions come from “laborious experimentation” -> Requires a great deal of hard work.

37. G: Former employees of Jobs suggest that his demanding behavior could “squash creativity and innovation” -> Certain personality types can limit innovation.

38. C: Critics say Harford’s TED Talk was unpersuasive because it was “stating the obvious” -> Expressing what everyone already knows is pointless.

39. B: The hummingbird effect proposes that progress in one field can trigger development “elsewhere entirely” -> Influences a completely different field.

40. D: Steve Henry believes in “collaborating with similar nanotechnology businesses” -> Innovation can be enhanced through collaboration with similar companies.

As Steve Henry (CEO of Kode Biotech) rightly said: “Innovation is the conversion of invention into something useful.” Through the reading passage “Innovation in Business”, we see that possessing vocabulary is just the “invention,” but knowing how to apply it to solve logic traps is the true “innovation” in Reading skills. We hope this breakdown has helped you grasp the strategies for handling difficult IELTS Reading question types.