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Innovation Management June 3rd 2015 Sources of innovation and Innovation Networks Francesca Cabiddu

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Page 1: Innovation Management Sources of innovation and … › francescacabiddu › files › 2012 › 04 › ...Distributed innovation and need for networks Title The Effect of M&A on Inventions’

Innovation Management

June 3rd 2015

Sources of innovation and Innovation

Networks

Francesca Cabiddu

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Outline

Sources of innovation

Rotwell’s five generation of innovationmodels

Absorptive capacity

Balancing exploration and explotation

A map of innovation search space

Distributed innovation and need for networks

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Search

Scanning the environment (internal and external) for, and processing relevant signals about, threats and opportunities for change

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Where do innovation come from?

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?

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Sources of innovation

Knowledge push

Need pull

Users as innovators

Extreme users

Watching others

Recombinant innovation

Design led-innovation

Future and forecasting

Accidents

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Where do innovation come from?

© 2013 John Wiley & Sons Ltd. www.innovation-portal.info

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Simple linear models

Technology push

Research anddevelopment

Manufacturing Marketing

1950s-1960s

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Simple linear models

Need pull

Research anddevelopment

ManufacturingMarketing

1970s

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Coupling model

Manufacturing

Marketing Research anddevelopment

1980s

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Integrated, parallel model

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Integrated, networked model

This model sees innovation as a multi-actor process which requires high levels of integration at both intra and inter-firm levels and which is facilitated by IT-based networking.

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Absorptive capacity

The ability of a firm to recognize the value of new external information, assimilate it and exploit it for commercial ends (Cohen and Levinthal, 1990)

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Cognitive Structures

• Research suggests:

▫ Accumulated prior knowledge increases the ability to acquire and recall new knowledge

▫ Learning in one task may influence and improve the learning of another task

▫ A diverse background provides a more robust basis for learning

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Capabilities that compose ACAP

Zahra and George (2002) highlight four distinct but complementary capabilities that compose a firm's ACAP:

acquisition

assimilation

transformation

exploitation

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Balancing exploitation and Exploration

Exploitation involves «the use and development of thing already Known»

Exploration involves «a pursuit of new knowledge» (Levinthal and March, 1993: 105)

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Firms need to master two distinct challenges at the same time

Establishedbusiness

(Exploitation)

New business(Exploration)

Strengthening and extending the core

Creating the new

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Ambidexterity

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A map of innovation search space

© 2013 John Wiley & Sons Ltd. www.innovation-portal.info

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Zone 1

Zone: Business as usual

Search challenges: exploit

Tools and methods: good practice/close to cusotmers

Enabling structures: Formal and mainstream structures

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Zone 2

Zone: Business as usual

Search challenges: exploiration

Tools and methods: open innovation approach

Enabling structures: Formal investement in specialized research functions – R&D, martket research and ect

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Zone 3

Zone: Alternative frame

Search challenges: Reframe

Tools and methods: alternative future

Enabling structures: Peripheral/ad hoc

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Zone 4

Zone: Radical – new to the world

Search challenges: co-evolve

Tools and methods: complexity theory- probe and learn

Enabling structures: Far from mainstream

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Rothwell’s five generations

© 2013 John Wiley & Sons Ltd. www.innovation-portal.info

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First and second — Simple linear models – need pull technology push.

Third – Coupling model, recognizing interaction between different elements and feedback loops between them.

Fourth – Parallel model, integration

Fifth – Systems integration and extensive networking flexible and customized response, continuous innovation.

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Definition of network

A network can be defined as a number of positions or nodes occupied by actors (individuals, firms, universities etc.) and links or interactions beween these nodes.

Networking involves using that arrangement to accomplish particular tasks

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Network

A network can influence the actions of its member in two ways:

The flow and sharing of information within the network

The position of actors in the network

Network can be tight or loose

Path-dependent

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Innovation networks

Emergent network

Engineered network

Closed network

Open network

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Innovation networks

© 2013 John Wiley & Sons Ltd. www.innovation-portal.info

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Some types of innovation network

Entrepreneur-based

Internal team

Communities of practice

Spatial

Sectoral

Consortia

Standards

Supply chains© 2013 John Wiley & Sons Ltd.

www.innovation-portal.info32

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Types of innovation network

We can map some of these different types of innovation network on to a diagram which positions them in terms of

how radical the innovation target is with respect to current innovative activity

the similarity of the participating companies

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Types of innovation network

© 2013 John Wiley & Sons Ltd. www.innovation-portal.info

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High value innovation networks: success factors

Highly diverse

Third-party gatekeepers

Financial leverage

Proactively managed

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In this session we have looked at

Sources of innovation

Rotwell’s five generation of innovationmodels

Absorptive capacity

Balancing exploration and explotation

A map of innovation search space

Distributed innovation and need for networks