These are my notes on the book "How Innovation Works" by Matt Ridley. The notes are a combination of direct quotes and my own paraphrasing. ELI5: Innovation is creating something new that is useful. It is different from invention, which is creating something new that is not necessarily useful. Innovation often happens by accident, and it is always a team effort. It is usually a gradual process that happens over time through trial and error. There can be a lot of resistance to innovation, because people are sometimes afraid of change. The main ingredient in the secret sauce that leads to innovation is freedom.