What type of innovation involves significant improvement over existing products or processes?

The correct answer identifies breakthrough innovation, which is characterized by significant improvements over existing products or processes. This type of innovation goes beyond incremental changes and introduces advancements that can radically alter the functionality, performance, or efficiency of what is currently available in the market. It often results in products or services that meet customer needs in ways that were previously unattainable, offering substantial benefits and value that can set a company apart from its competitors.

Breakthrough innovation can lead to new market paradigms or enhance existing ones, making it a crucial component for businesses looking to maintain a competitive edge. It harnesses novel technology or processes that not only improve products but can also lead to entirely new markets.

Other options may relevantly relate to innovation but do not focus on the significant improvements aspect. Sustained innovation typically refers to ongoing improvements or small adjustments rather than radical changes. Disruptive innovation often reshapes market dynamics and can create new markets entirely but may not necessarily center on improvements. Basic research is foundational work that drives the understanding of concepts and technologies but does not directly translate into improved products or processes.