Manufacturers today face the challenge of rapidly changing market requirements, the demand for individualization of products for specific needs or market segments, and the need to comply with regulations, even in foreign markets. Healthcare markets with innovative products are mass markets. However, the success of such products depends on the ability to produce them at optimal cost, in suitable quality and in an ever-increasing variety of versions. In addition, production is of particular importance with regard to global sustainability requirements. Another aspect from the manufacturer’s perspective is ensuring economic profitability. It quickly becomes clear that decent product innovations alone are not enough for the success of the products, but that success will only be possible in combination with corresponding production innovation. This chapter discusses production innovation in the broader context of innovation. It introduces a new concept, based on practical experience, that describes how to apply a strategy of contextual ambidexterity to production innovation. Finally, it illustrates the impact of production innovation on the success of medical products and devices.