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Innovation Management
June 3rd 2015
Sources of innovation and Innovation
Networks
Francesca Cabiddu
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
Search
Scanning the environment (internal and external) for, and processing relevant signals about, threats and opportunities for change
Where do innovation come from?
5
?
Sources of innovation
Knowledge push
Need pull
Users as innovators
Extreme users
Watching others
Recombinant innovation
Design led-innovation
Future and forecasting
Accidents
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
Simple linear models
Need pull
Research anddevelopment
ManufacturingMarketing
1970s
Coupling model
Manufacturing
Marketing Research anddevelopment
1980s
Integrated, parallel model
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.
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)
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
Capabilities that compose ACAP
Zahra and George (2002) highlight four distinct but complementary capabilities that compose a firm's ACAP:
acquisition
assimilation
transformation
exploitation
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)
Firms need to master two distinct challenges at the same time
Establishedbusiness
(Exploitation)
New business(Exploration)
Strengthening and extending the core
Creating the new
Ambidexterity
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
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
Zone 3
Zone: Alternative frame
Search challenges: Reframe
Tools and methods: alternative future
Enabling structures: Peripheral/ad hoc
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
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.
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
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
Innovation networks
Emergent network
Engineered network
Closed network
Open network
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
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
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
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