Industrial Innovation aims to bring about structural changes in technological systems by restructuring different production technologies in different sectors. The industrial sector plays a significant role in driving technological and economic advancement, and industrial innovation is a key part of this process. It is important for businesses in the industrial sector to continuously seek out new ideas and ways of doing things to stay competitive and meet the changing needs of their customers.

The source of industrial innovation lies in the modularization and system integration of technology and organization. Industrial upgrades work through the interaction of the following elements: Modular enterprise competition, knowledge creation, knowledge flow, modular choice, and absorption. Modular and architectural innovations drive industrial upgrades.

Developing new or improved products or processes.

Adopting new technologies, such as automation or artificial intelligence.

Improving the efficiency of existing processes through process optimization or the use of lean manufacturing techniques.