Novel and innovate are two terms that are often used interchangeably, however, there is a difference between them. Novel refers to something that is new, either in design or concept, and has not been done before. Innovation, on the other hand, refers to any new idea or created item that is purposely changed or improved from the original. Innovation involves taking something that already exists and improving it in a way that adds value, such as increasing its efficiency or making it more cost-effective.