This article focuses on the innovation in product design, marketing and manufacturing. New products and product differentiation are most often linked by management directly with product design and innovation. Not enough managements stop to think through the nature of product competition and realize that product differentiation can be achieved not only through design, but also through marketing and manufacturing. Manufacturing innovation. Manufacturing innovations are too often viewed simply as a means of reducing cost rather than as a competitive weapon. This is because minor to medium degrees of innovation do not result in visual, or perhaps even operating, changes in the product-sometimes even major degrees of manufacturing innovation result in changes that are not readily apparent. However, manufacturing innovation at the higher degrees has an effect on product marketing since it usually permits completely new forms of the product to be made. While some recognition has always been accorded to the interrelationship of manufacturing and engineering, this has become so obscured by our rapidly increasing scientific knowledge that it has frequently caused serious cost and/or production difficulties.