Innovation is the specific instrument of entrepreneurship. It is the act that endows resources with a new capacity to create wealth.
Context
Drucker opened Innovation and Entrepreneurship by reframing what entrepreneurship actually is. It is not personality-driven risk-taking, he argued, but the disciplined application of innovation — finding and exploiting new uses for existing resources. This definition shifted the conversation from the charismatic entrepreneur to the systematic practice of seeking and acting on change.