Strategic Innovation Management

This first edition of Strategic Innovation Management is an exciting new addition to the established bestselling texts Managing Innovation and Innovation and Entrepreneurship written by Joe Tidd and John Bessant. Aimed at students taking courses in business studies and management, as well as non-specialist courses in other disciplines, this book provides a practical and accessible evidence-based approach to managing innovation in a wide range of contexts, including: manufacturing, services, small to large organizations and the private, public and third sectors.

The text has been designed to be fully integrated with the Innovation Portal at www.innovation-portal.info, which contains an extensive collection of additional resources for both lecturers and students including teaching resources, case studies, media clips, innovation tools, seminar and assessment activities and over 300 test-bank questions.

About the Authors xi

Preface xiii

Acknowledgements xv

How to Use This Book xvii

Part I Foundations of Managing Innovation 1

Chapter 1 What Is Innovation – And Why Does It Matter? 3

What Is Innovation? 3

Why Does Innovation Matter? 9

To Whom? 10

Innovation Isn’t Easy! 10

Can We Manage Innovation? 12

The Case for Strategic Innovation Management 13

Summary 16

Further Resources 16

References 17

Chapter 2 Innovation Strategy 21

Why Strategy? 21

What’s in an Innovation Strategy? 22

Strategy at Different Levels 33

Dynamic Capability 35

Summary 37

Further Resources 37

References 38

Chapter 3 Identifying Strategic Capabilities 41

The Resource-Based View 41

Distinguishing Capabilities from Resources 42

Assessing Capabilities 46

Creating and Capturing Value 53

Beware of Core Rigidities 55

Summary 57

Further Resources 57

References 57

Chapter 4 Leadership and Organization of Innovation 61

The Innovative Organization 61

Innovation Leadership 62

Collective and Social 65

Context and Climate 72

Summary 76

Further Resources 76

References 77

Chapter 5 Innovation as a Process 81

Beyond Spengler 81

A Map of the Process 82

Managing the Process 86

Learning to Manage Innovation 90

The Problem of Partial Models 91

Summary 94

Further Resources 94

References 96

Chapter 6 Sources of Innovation 97

Where Do Innovations Come From? 97

Knowledge Push 98

Need Pull. . . 99

Making Processes Better 101

Whose Needs? Working at the Edge 103

Crisis Driven Innovation 105

Towards Mass Customization 107

Users as Innovators 107

Watching Others – and Learning from Them 110

Recombinant Innovation 111

Regulation 111

Futures and Forecasting 112

Design-driven Innovation 113

Accidents 114

Summary 116

Further Resources 116

References 117

Chapter 7 Search Strategies for Innovation 119

Making Sense of the Sources 119

The Innovation Treasure Hunt 122

Innovation Search Strategies 127

Strategies for Searching 131

Innovation Networks 133

Knowledge Management 134

Learning to Search 135

Summary 137

Further Resources 137

References 138

Chapter 8 Forecasting Emerging Opportunities for Innovation 141

Forecasting 141

Customer or Market Surveys 143

Internal: Brainstorming 144

External: Benchmarking 145

Scenario Development 149

Summary 156

Further Resources 156

References 157

Chapter 9 Selecting Innovation Projects 159

Why is Selection a Challenge? 159

Choosing between Projects 162

Summary 178

Further Resources 178

References 179

Chapter 10 Developing New Products and Services 181

The New Product/Service Development Process 181

Success Factors 186

Service Development 188

Tools to Support New Product Development 193

Summary 199

Further Resources 199

References 200

Chapter 11 Developing Business and Talent through Corporate Venturing 203

Internal Venturing and Entrepreneurship 203

Why Do It? 205

Managing Corporate Ventures 211

Strategic Impact of Ventures 219

Summary 220

Further Resources 220

References 220

Chapter 12 Commercialization and Diffusion of Innovations 223

Why Adopt Innovations? 223

Models of Diffusion 227

Factors Influencing Adoption 230

Applying Diffusion to Innovation Strategy 237

Summary 240

Further Resources 240

References 240

Chapter 13 Exploiting Knowledge and Intellectual Property 243

Innovation and Knowledge 243

Summary 260

Further Resources 260

References 261

Chapter 14 Business Models and Capturing Value 263

What’s a Business Model? 263

Generic and Specific Business Models 267

Why Use Business Models? 268

Building a Business Model 269

Business Model Innovation 273

Summary 275

Further Resources 275

References 275

Chapter 15 Capture Value: Learning to Manage Innovation 277

The Story So Far . . . 277

Making Innovation Happen 278

Learning in Organizations 280

Innovation Auditing 281

Innovation Auditing in Practice 288

Dynamic Capability and Changing Our Routines 291

Summary 292

Further Resources 292

References 293

Part II The Innovation Frontier 295

Chapter 16 Users as Innovators 297

Users Aren’t Passive 297

Lead Users 300

Extreme Users 303

Co-development 304

Democratic Innovation and Crowdsourcing 305

Summary 308

Further Resources 308

References 309

Chapter 17 Exploiting Open Innovation and Strategic Alliances 311

Open Innovation 311

Benefits and Limits of Open Innovation 315

Joint Ventures and Strategic Alliances 323

Summary 326

Further Resources 326

References 326

Chapter 18 Exploiting Discontinuous Innovation 331

Beyond the Steady State 332

The Problem – and the Opportunity – in Discontinuous Innovation 333

Innovation Lifecycles: From Discontinuity to Steady State 335

Discontinuous Can Be Disruptive 337

Managing Discontinuous Innovation 343

Dealing with Discontinuity 344

Summary 347

Further Resources 347

References 348

Chapter 19 Social Innovation 351

What Is ‘Social Innovation’? 352

Definitions and Exploration of the Core Idea 355

The Challenge of Social Entrepreneurship 358

Enabling Social Innovation 359

Why Social Innovation? 361

Summary 367

Further Resources 367

References 368

Chapter 20 Innovation in Developing and Emerging Economies 371

Globalization and Innovation 371

Looking Back 373

Building BRICs: The Rise of New Players on the Innovation Stage 374

Developing Countries 383

Summary 387

Further Resources 387

References 388

Chapter 21 Sustainability 389

The Challenge of Sustainability-led Innovation 389

We’ve Seen This Before 391

Sustainability-led Innovation 392

Managing the Innovation Process for Sustainability 399

Responsible Innovation 402

Summary 404

Further Resources 404

References 405

Index 409

Joe Tidd is Professor of Technology and Innovation Management at SPRU (Science and Technology Policy Research), University of Sussex, UK and visiting Professor at University College London.

John Bessant holds the Chair in Innovation and Entrepreneurship at Exeter University where he is also Research Director.