This report delves into the critical concepts of innovation and commercialization, exploring their significance for business success, particularly in the context of Essence Drinks. It begins by defining innovation and contrasting it with invention, highlighting their importance for achieving competitive advantage. The report then analyzes how organizational vision, leadership, culture, and teamwork shape innovation and commercialization, emphasizing the role of diversity and effective leadership in fostering a creative environment. It further identifies the 4 Ps of innovation (Paradigm, Product, Procedure, and Position) and discusses the utilization of the innovation funnel. The report also examines frugal innovation, its application in the organizational context, and the importance of the commercial funnel and new product development. Finally, it addresses building an innovative business case and evaluating tools for developing, retaining, and protecting intellectual property. The report provides a comprehensive overview of the strategies and tools necessary for driving innovation and commercialization within a business.