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Making use of the term "innovation" has actually altered substantially over the last 200 years. Prior to the 20th century, the term was uncommon in English, and it was used either to describe the description or research study of the useful arts or to mention technical education, as in the Massachusetts Institute of Technology (chartered in 1861). The term "innovation" rose to prominence in the 20th century in connection with the 2nd Industrial Transformation. The term's meanings altered in the early 20th century when American social scientists, beginning with Thorstein Veblen, equated ideas from the German principle of into "technology." In German and other European languages, a distinction exists between technik and technologie that is absent in English, which usually translates both terms as "innovation." By the 1930s, "innovation" referred not only to the study of the industrial arts however to the commercial arts themselves.

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Scientists and engineers generally prefer to specify technology as used science, instead of as the important things that people make and use. More recently, scholars have obtained from European thinkers of "technique" to extend the significance of innovation to different types of crucial reason, as in Foucault's work on innovations of the self (techniques de soi). Dictionaries and scholars have provided a range of meanings. The offers a meaning of the term: "using science in market, engineering, and so on, to create beneficial things or to fix problems" and "a maker, piece of equipment, method, and so on, that is produced by innovation." Ursula Franklin, in her 1989 "Real Life of Technology" lecture, gave another meaning of the concept; it is "practice, the way we do things around here." The term is typically used to suggest a specific field of innovation, or to describe high technology or simply consumer electronic devices, instead of technology as a whole.