Final answer:
Linda Waters' development of a new flu treatment represents product innovation, as it exemplifies the introduction of a new drug that adds significant value to its users by treating the common flu more effectively.
Step-by-step explanation:
Linda Waters, a chemical engineer at a large pharmaceutical company, has led a team to develop a new drug that effectively treats the common flu faster than any other drug on the market. This scenario is an example of product innovation. Product innovation involves the introduction of a new or significantly improved good or service that adds value for users. It is distinct from process innovation, which refers to improvements in the methods of production; service innovation, which pertains to new or improved services; and management innovation, which involves novel ways of organizing business practices.
This is an example of product innovation. Linda Waters and her team have developed a new drug that is more effective than existing drugs in treating the common flu. This represents a new product in the pharmaceutical industry that has the potential to disrupt the market and provide a better solution for patients.