Final answer:
Inventing a new way to organize physical inputs to produce a product or service refers to process innovation, which is driven by technological change and aims to improve labor productivity.
Step-by-step explanation:
Inventing a new way to organize physical inputs to produce a product or service refers to process innovation. Process innovation involves the discovery or implementation of a new method or technology to improve the way a product or service is created or delivered. This can include changes to equipment, workflows, or techniques that enhance production efficiency or product quality.
Technological change is often the driver behind process innovation, leading to significant improvements in labor productivity. This kind of innovation is key to maintaining competitive advantage and adapting to market demands. It is different from product innovation, which focuses on creating new or improved goods, and service innovation, which involves new ways of offering services. Management innovation, meanwhile, relates to changes in the organization, management practices, or company structure.