It was Joseph Schumpeter in “The theory of economic development” (1912) who introduced for the first time the distinction between invention and innovation, that gave rise to a whole new subject of theoretical studies, conceptual frameworks and practical cases in empowering innovation throughout different market scales.
In this 100 years of innovation, both theoretical and practical evidence suggest that innovation has become a critical factor for
the long-term success, in maintaining competitiveness (Tidd et al., 1997; Cooper, 1999; Bernstein & Singh, 2006) and increasing the probability of succeeding in the market place (Cooper, 2000; Gielens & Steenkamp, 2004; Urban & Hauser, 1993). In the same vein, Innovation 2010, a study conducted by BCG, a consultancy, targeting the most innovative worldwide companies reveal that more than 72 percent of the senior managers consider innovation one of the top three priorities (up from 63 percent on 2009). Hence, as essential as innovation becomes, more attention should be directed on the corporate culture that embraces it.
Determinants of an innovation eco-system that embraces successful innovation projects
The organizational strategies on innovation activities are positively correlated with the success rate of firm’s innovation projects. That is, the right implementation of the following organizational strategies (Training of Employees, Innovation Strategies, Innovation Culture, Innovation infrastructure & Partnerships, Process of Innovation, Innovation Knowledge Spread) could result in 25 percent higher success rate in innovation projects.
The propensity to innovate has been analyzed along the attitude toward innovation as opportunity or risk and the attitude toward new inputs. Implementing a proactive innovation-to-risk culture could increase the probability of being successful in the innovation projects by 34 percent. On the other hand, the dominant attitude toward new inputs has been “actively seek them out”, potentially resulting in 22.25% higher innovation project’s success rate.
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