Some types of innovation lead to an increase in productivity, while others are less related to productivity.
There are four major areas of innovation. One of them is product innovation. If I design a new telephone, that is a new product. Another area is process innovation, which has to do with the way a machine is produced. That machine does not necessarily have to be a new product. There is also supply chain innovation, which is often referred to as organizational innovation. That has to do with the way companies manage their relationships with their suppliers, clients and so on. The last area is marketing innovation.
In sectors such as agri-food production, innovation is often related to the way products are presented to consumers. That's important. Many inventors design products in their basement, but they don't know how to market them. I think it's just as important to be innovative in marketing as it is to be innovative in processes and products.
As for which types of innovation help increase productivity the most, process innovation is definitely the first one I think of in terms of productivity, since it has to do with the way things are done. Product innovation is much less related to productivity. Its main goal is to penetrate new markets and manufacture new products. Organizational innovation also has an impact on productivity. It improves supplier response time when a component is needed to manufacture a piece of equipment, or when products must be delivered to clients. Marketing innovation is more related to product innovation than to productivity.
Basically, I would say that process innovation and organizational innovation have the biggest impact on productivity.