Today the aerospace industry is ranked in the top three industrial sectors in the UK. With air traffic expected to more than double by 2015, there are tremendous wealth creation opportunities for those who satisfy their customer's needs. Innovation — the successful exploitation of new ideas — is a key ingredient in achieving this. It is an engine of growth because it delights the customer — and that delight is the basis for long-lasting customer loyalty. Henry Royce recognised the importance of exceeding the customer's expectations and laid the foundations for Rolls-Royce's long tradition of innovation. With historical illustrations, from the Silver Ghost motor car to today's flagship — the Trent aero engine — this paper highlights the key elements which are necessary to promote innovation and have led to many Rolls-Royce “firsts”. A review of today's state-of-the-art aero engines details current innovations, and their associated customer benefits, while a view of future markets reveals an insight into future aero engine developments and technical challenges. The solution to some of these challenges will require the application of advanced technologies. In anticipation of the customer's requirements, the development of these advanced technologies is discussed together with their potential customer benefits.