Today the aerospace industry is ranked in the top threeindustrial sectors in the UK. With air trafficexpected to more than double by 2015, there aretremendous wealth creation opportunities for thosewho satisfy their customer's needs. Innovation — thesuccessful exploitation of new ideas — is a keyingredient in achieving this. It is an engine ofgrowth because it delights the customer — and thatdelight is the basis for long-lasting customerloyalty. Henry Royce recognised the importance ofexceeding the customer's expectations and laid thefoundations for Rolls-Royce's long tradition ofinnovation. With historical illustrations, from theSilver Ghost motor car to today's flagship — theTrent aero engine — this paper highlights the keyelements which are necessary to promote innovationand have led to many Rolls-Royce “firsts”. A reviewof today's state-of-the-art aero engines detailscurrent innovations, and their associated customerbenefits, while a view of future markets reveals aninsight into future aero engine developments andtechnical challenges. The solution to some of thesechallenges will require the application of advancedtechnologies. In anticipation of the customer'srequirements, the development of these advancedtechnologies is discussed together with theirpotential customer benefits.