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119Samsung, Huawei, BYD, and Siemens (BCG & VisualCapitalist, 2023). The toprankings are American companies. Six companies are American, two are Chinese,one is South Korean, and one is German. It should be noted that in 2022, Chinawas already nearing the top 10 innovative countries according to the GII.Both types of innovation are applied by companies %u2013 open innovations, wherecompanies create new products and processes by collaborating with otherorganisations and using externally-generated knowledge, and closedinnovations, where companies organise and manage their own internal R&Dactivities to offer new products and provide new business processes. Tidd and Bessant (2017) distinguish innovations at two levels %u2013 thecomponent level (individual parts of the whole), and the system level. At acomponent level, innovations can be incremental, meaning improvements tospecific components (%u201cdoing what we do, but better%u201d), new components forexisting systems (%u201cnew to the company%u201d), and radical, meaning advancedmaterials to improve the performance of components (%u201cnew to the world%u201d). At asystem level, innovation can be incremental, where it is about new versions ofproducts, as well as new generations of innovations, and radical systeminnovations (Fig. 3.2.1). Fig. 3.2.1 Types of innovationsSource: J. Tidd & J. Bessant, 2017INCREMENTAL RADICAL RADICALSYSTEMLEVEL COMPONENT LEVEL (%u2018doing what (%u2018new to the (%u2018new to we do better%u2019) enterprise%u2019) the world%u2019)3.2 Innovations and Design Thinking