When is Innovation, Innovation?

And When It’s Just an App.

The Problem with the Word ‘Innovation’

Founders love to call their idea innovative. But here’s the thing - most “innovations” aren’t. Many founders invest heavily in building new technology - an app, a platform, a digital system - and assume that makes it innovative. But funding assessors look deeper. Innovation isn’t about creating new tech; it’s about creating new value or new ways of doing things.

In funding assessments, innovation has a specific meaning. It’s not interchangeable with technology, digitisation, or modernisation. Yet, countless applications fail because founders describe what they’ve built - an app, a platform, an AI chatbot - rather than what’s genuinely new in their method, model, or process.

When you write, “We’ve developed an innovative app that connects users to mental health services,” assessors don’t see innovation. They see a delivery method.
Apps are tools not outcomes. There are thousands doing similar things. What assessors want to know is:

• What makes this different in its method or model?

• What problem does it solve in a new way?

• What measurable change or efficiency does it create that didn’t exist before?

Without those answers, “innovation” becomes an empty label.

Innovation Is Not Technology

Innovation is not the presence of software. It’s the presence of a new way to solve a problem - a different approach, structure, or method that creates fresh value.

Let’s dive deeper.

• An app is a vessel. It’s a mechanism through which a solution is delivered.

• Innovation sits underneath the vessel. It’s the intellectual or systemic shift that makes that vessel necessary in the first place.

For example:

• A ride-sharing app wasn’t the innovation - the decentralised logistics model behind it was.

• A social enterprise marketplace isn’t innovative because it’s online, it’s innovative because it reconfigures ownership, trust, and distribution of profit.

• A healthtech platform isn’t innovative just because it uses AI. It’s innovative if the AI introduces a new diagnostic or triage method that improves accessibility or accuracy.

In funding contexts, assessors look for novelty, application, and transferability. They are trained to recognise when technology is the vehicle, not the driver.

What Funders Really Mean by ‘Innovation’

When funders or assessors ask about innovation, they’re asking three things:

1. What’s new here and to whom?
   Innovation is relative. It might be new to your industry, region, or customer base. Define that boundary clearly - it matters.

2. Does this create a new process, model, or capability?
   Don’t just describe what you’ve built; describe what it changes. What does this make possible that wasn’t before?

3. Can this be applied more broadly?
   Funders value innovations that scale beyond one business. Show how your approach could inform or enable a wider system, sector, or policy change.

And when describing your solution, lead with the new logic - not the tech layer.

“We’ve developed a predictive model that reduces grant assessment time by 60%. It’s delivered through a web-based application.”
That phrasing demonstrates the innovation first, and the technology second.

Why This Matters

Precision in language reflects precision in thinking. When you use “innovation” loosely, you dilute your credibility. But when you articulate it strategically - showing what’s new, useful, and scalable - you align with how assessors think and funders decide.

True innovators aren’t building apps. They’re building new ways of thinking that apps simply make possible.

About Lisa Erhart

Lisa Erhart is the founder of Funding4Growth, a strategist helping women and diverse founders navigate the funding landscape with clarity and confidence.

Explore the Tech Blueprint service: a guided framework to help you define, position, and articulate your innovation before you apply for funding.
👉 Learn more at Funding4Growth.io/techblueprint