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About the Authors xiii Acknowledgements xiv Preface to the Fifth Edition xv How to Use This Book xvii
Part I Managing Innovation 1
Chapter 1 Innovation ? What it is and Why it Matters3
1.1 Introduction 3
1.2 Why Innovation Matters 5
1.3 Innovation and Entrepreneurship 8
1.4 How Innovation Matters 9
1.5 Old Question, New Context 15
1.6 What is Innovation? 18
1.7 A Process View of Innovation 21
1.8 Scope for/Types of Innovation 23
1.9 Exploring Different Aspects of Innovation 30
1.10 Managing Innovation
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Chapter 2 Innovation as a Core Business Process 59
2.1 Introduction 59
2.2 Variations on a Theme 61
2.3 A Contingency Model of the Innovation Process 74
2.4 Evolving Models of the Process 75
2.5 Can We Manage Innovation? 79
2.6 Building and Developing Routines Across the Core Process82
2.7 Learning to Manage Innovation 83
2.8 Measuring Innovation Success 85
2.9 What Do We Know About Successful Innovation Management?85
2.10 Success Routines in Innovation Management 88
2.11 Beyond the Steady State 95 Summary and Further Reading 98 References 99
Part II Context 105
Chapter 3 Building the Innovative Organization 107
3.1 Shared Vision, Leadership and the Will to Innovate 109
3.2 Appropriate Organization Structure 115
3.3 Key Individuals 120
3.4 High Involvement in Innovation 124
3.5 Effective Team Working 132
3.6 Creative Climate 139
3.7 Boundary-Spanning 155 Summary and Further Reading 161 References 161
Chapter 4 Developing an Innovation Strategy* 169
4.1 ?Rationalist? or ?Incrementalist?Strategies for Innovation? 170
4.2 The Dynamic Capabilities of Firms 182
4.3 Appropriating the Benefi ts from Innovation 188
4.4 Technological Trajectories 195
4.5 Developing Firm-Specifi c Competencies 198
4.6 Globalization of Innovation 212
4.7 Enabling Strategy Making 218 Summary and Further Reading 224 References 225
Part III Search 231
Chapter 5 Sources of Innovation 233
5.1 Where do Innovations Come From? 233
5.2 Knowledge Push
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5.3 Need Pull
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5.4 Whose Needs? 243
5.5 Towards Mass Customization 249
5.6 Users as Innovators 252
5.7 Extreme Users 256
5.8 Watching Others 258
5.9 Recombinant Innovation 259
5.10 Design-led Innovation 260
5.11 Regulation 262
5.12 Futures and Forecasting 262
5.13 Accidents 263
5.14 A Framework for Looking at Innovation Sources 266
5.15 How to Search 268
5.16 Absorptive Capacity 271
5.17 Balancing Exploitation and Exploration 273
5.18 Tools and Mechanisms to Enable Search 274
5.19 Two Dimensions of Innovation Search 284
5.20 A Map of Innovation Search Space 286 Summary and Further Reading 292 References 293
Chapter 6 Innovation Networks 299
6.1 No Man is an Island
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6.2 The ?Spaghetti? Model of Innovation 301
6.3 Innovation Networks 302
6.4 Networks at the Start-Up 309
6.5 Networks on the Inside
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6.6 Networks on the Outside 313
6.7 Networks into the Unknown 316
6.8 Managing Innovation Networks 319 Further Reading and Resources 323 References 324
Part IV Select 327
Chapter 7 Decision Making Under Uncertainty 329
7.1 Introduction 329
7.2 Meeting the Challenge of Uncertainty 330
7.3 The Funnel of Uncertainty 330
7.4 Decision Making for Incremental Innovation 332
7.5 Building the Business Case 336
7.6 Building Coalitions 336
7.7 Spreading the Risk ? Building a Portfolio 338
7.8 Decision Making at the Edge 339
7.9 Mapping the Selection Space 346 Summary and Further Reading 354 References 354
Chapter 8 Building the Innovation Case 359
8.1 Developing the Business Plan 359
8.2 Forecasting Innovation 362
8.3 Estimating the Adoption of Innovations 369
8.4 Assessing Risk, Recognizing Uncertainty 378
8.5 Anticipating the Resources 384 Summary and Further Reading 399 References 400
Part V Implement 403
Chapter 9 Creating New Products and Services 405
9.1 Processes for New Product Development 405
9.2 Infl uence of Technology and Markets on Commercialization421
9.3 Differentiating Products 425
9.4 Building Architectural Products 430
9.5 Commercializing Technological Products 437
9.6 Implementing Complex Products 441
9.7 Service Innovation 446 Summary and Further Reading 456 References 457
Chapter 10 Exploiting Open Innovation and Collaboration461
10.1 Joint Ventures and Alliances 461
10.2 Collaborating with Suppliers to Innovate 486
10.3 User-Led Innovation 491
10.4 Benefits and Limits of Open Innovation 493 Summary and Further Reading 496 References 497
Part VI Capture 503
Chapter 11 Exploiting Entrepreneurship and New Ventures505
11.1 What is a Venture? 505
11.2 Internal Corporate Venturing 517
11.3 Spin-Outs and New Ventures 538 Summary and Further Reading 559 References 560
Chapter 12 Capturing the Benefi ts of Innovation 565
12.1 Creating Value Through Innovation 565
12.2 Innovation and Firm Performance 569
12.3 Exploiting Knowledge and Intellectual Property 573
12.4 Broader Economic and Social Benefi ts 595
12.5 Choosing a Business Model 611 Summary and Further Reading 618 References 619
Chapter 13 Capturing Learning from Innovation 623
13.1 What have We Learned About Managing Innovation? 623
13.2 How can We Build Dynamic Capability? 625
13.3 Learning to Manage Innovation 626
13.4 Tools to Help Capture Learning 628
13.5 Innovation Auditing 630
13.6 Measuring Innovation Performance 631
13.7 Measuring and Developing Innovation Management Capability632
13.8 Using the Framework 637
13.9 Variations on a Theme 638
13.10 Final Thoughts 642 Summary and Further Reading 644 References 644 Index 647