Manufacturing companies constantly strive towards better quality and more cost-efficient production. This development is mainly managed through continuous improvement, somewhat limiting the organization to incremental changes. Meanwhile, existing literature emphasizes the need of managing both incremental and radical innovations to face dual market demands. This paper present proposals that can support an increased understanding of the context in which innovation management could be applied to further improve capabilities of a production organization, towards ambidexterity. Topics of proposals are 1) definitions of innovation in production, 2) innovation management with continuous improvement, and 3) alternative perspective on types of innovations.