To many of us, Innovation is magic; it’s an unpredictable creative outburst of creative minds. The Theory of Innovation closely examines past and present technology innovation dynamics, being shaped in market economies, for detecting repeatable patterns. It also usages those patterns in interpreting past dynamics and comprehending the present situation. Most importantly, it helps us to predict unfolding technology innovation opportunities and challenges, which is immensely important for supporting rational decision making for taking advantage of and coping up with the unfolding transformation.