Sources of innovation: Difference between revisions
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We can distinguish several '''sources of [[innovation]]'''<ref>Oksanen, K., 2013, pp. 815-827</ref>: | We can distinguish several '''sources of [[innovation]]'''<ref>Oksanen, K., 2013, pp. 815-827</ref>: | ||
* internal research (R & D) | * internal research (R & D) | ||
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* [[creativity]] and skill and competencies of employees | * [[creativity]] and skill and competencies of employees | ||
* [[market]] competitors | * [[market]] competitors | ||
* goals and objectives of [[management]] | * [[goals and objectives]] of [[management]] | ||
* [[motivation]] of managers and employees | * [[motivation]] of managers and employees | ||
* open mindedness | * open mindedness | ||
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==Sources of innovation differ between enterprises and industries== | ==Sources of innovation differ between enterprises and industries== | ||
According to Drucker, there are seven sources of innovation that can provide the company's success<ref>Ahonen M., 2009, pp.3-4</ref>: | According to Drucker, there are seven sources of innovation that can provide the company's success<ref>Ahonen M., 2009, pp.3-4</ref>: | ||
* The unexpected | * The unexpected - unforeseen success, failure or event | ||
* The incongruity | * The incongruity - divergence of real world and expected reality | ||
* Innovation based on [[process]] [[need]] | * Innovation based on [[process]] [[need]] - improving the [[efficiency]] of process, delivering missing parts of it and creating the links | ||
* Changes in industry or [[market structure]] that catch everybody unawares | * Changes in industry or [[market structure]] that catch everybody unawares - growing or [[downsizing]] markets | ||
* Demographics | * Demographics - changes in a population's structure (size, age, status) | ||
* Changes in perception, meaning and mood | * Changes in perception, meaning and mood - changes in [[customer]] perspectives and expectations | ||
* New knowledge | * New knowledge - scientific or non-scientific breakthroughs that provide the idea of new [[product]] or [[service]] | ||
==Areas in innovation== | ==Areas in innovation== | ||
Many of the most useful innovation come from [[workforce]]: both employees and managers. When the [[workplace]] [[environment]] leads to individual creativity, it provides new multiple solutions and ideas. There are six areas/methods that help people to become the source of innovation<ref>Adams K., 2005, pp. 31-32</ref>: | Many of the most useful innovation come from [[workforce]]: both employees and managers. When the [[workplace]] [[environment]] leads to individual creativity, it provides new multiple solutions and ideas. There are six areas/methods that help people to become the source of innovation<ref>Adams K., 2005, pp. 31-32</ref>: | ||
* challenge | * challenge - matching people to jobs with optimized challenge with no boredom | ||
* freedom | * freedom - giving employees autonomy in running the process to feel part of ownership | ||
* resources | * resources - keeping some time pressure but with no restricted deadliness | ||
* [[work]]-group features | * [[work]]-group features - sharing different perspectives and combining ideas | ||
* supervisory encouragement | * supervisory encouragement - encouraging risk-taking and accepting failures | ||
* organizational support | * organizational support - collaborating and sharing all information | ||
==Partners in innovation== | ==Partners in innovation== | ||
| Line 76: | Line 59: | ||
==Outsourcing== | ==Outsourcing== | ||
Nowadays many companies decide to outsource innovation activities, especially in areas that they do not have in-house ability. [[Outsourcing]], despite of negative site as integrating into [[organization]] on basic level, it can acquire external knowledge and gain more advanced skills. Moreover, it helps build [[enterprise]]'s reputation, create new relationships and establish cooperation with group of innovators<ref>Choi J., 2005, pp. 7</ref>. | Nowadays many companies decide to outsource innovation activities, especially in areas that they do not have in-house ability. [[Outsourcing]], despite of negative site as integrating into [[organization]] on basic level, it can acquire external knowledge and gain more advanced skills. Moreover, it helps build [[enterprise]]'s reputation, create new relationships and establish cooperation with group of innovators<ref>Choi J., 2005, pp. 7</ref>. | ||
{{infobox5|list1={{i5link|a=[[Knowledge economy]]}} — {{i5link|a=[[Organizational innovation]]}} — {{i5link|a=[[Types of organizational change]]}} — {{i5link|a=[[Industrial park]]}} — {{i5link|a=[[Development of resources]]}} — {{i5link|a=[[Network structure]]}} — {{i5link|a=[[Knowledge management system]]}} — {{i5link|a=[[Innovation]]}} — {{i5link|a=[[Centre of excellence]]}} }} | |||
==References== | ==References== | ||
* Adams K., (2005), [http://www.fpspi.org/pdf/InnovCreativity.pdf The Sources of Innovation and Creativity], National Center on [[Education]] and the Economy, 31-32. | * Adams K., (2005), [http://www.fpspi.org/pdf/InnovCreativity.pdf The Sources of Innovation and Creativity], National Center on [[Education]] and the Economy, 31-32. | ||
* Ahonen M., (2009), [https://www.researchgate.net/publication/240610587_Sources_of_Innovative_Opportunity_and_Mass_Customization_-_An_Analysis_of_EMF_Health_Business_Area Sources of Innovative Opportunity and Mass Customization - An Analysis of EMF&Health Business Area], University of Tampere, 3-4. | |||
* Ahonen M., (2009), [https://www.researchgate.net/publication/240610587_Sources_of_Innovative_Opportunity_and_Mass_Customization_-_An_Analysis_of_EMF_Health_Business_Area Sources of Innovative Opportunity and Mass Customization | * Choi J., (2015), [http://www.oxfordtmcd.org/sites/www.tmd-oxford.org/files/publications/SLPTMD-WP-67.pdf Create or Buy - Internal vs. External Source of Innovation and Firm Productivity], University of Oxford, 7. | ||
* Choi J., (2015), [http://www.oxfordtmcd.org/sites/www.tmd-oxford.org/files/publications/SLPTMD-WP-67.pdf Create or Buy | |||
* Correia A., Braga A., Braga V., (2017), [https://aip.scitation.org/doi/10.1063/1.4981981 Determinants, Obstacles, Sources and Cooperation to Innovation in Portuguese Firms, using Community Innovation Survey], AIP Publishing, 4-5. | * Correia A., Braga A., Braga V., (2017), [https://aip.scitation.org/doi/10.1063/1.4981981 Determinants, Obstacles, Sources and Cooperation to Innovation in Portuguese Firms, using Community Innovation Survey], AIP Publishing, 4-5. | ||
* Feldman, M. P., & Florida, R. (1994). [http://creativeclassgroup.com/rfcgdb/articles/14%20The_Geographic_Sources_of_Innovation.pdf The geographic sources of innovation: technological infrastructure and product innovation in the United States]. Annals of the association of American Geographers, 84(2), 210-229. | * Feldman, M. P., & Florida, R. (1994). [http://creativeclassgroup.com/rfcgdb/articles/14%20The_Geographic_Sources_of_Innovation.pdf The geographic sources of innovation: technological infrastructure and product innovation in the United States]. Annals of the association of American Geographers, 84(2), 210-229. | ||
* Oksanen, K., & Ståhle, P. (2013). [https://www.researchgate.net/profile/Kaisa_Oksanen2/publication/265099923_Physical_environment_as_a_source_for_innovation_Investigating_the_attributes_of_innovative_space/links/53ff05eb0cf283c3583c1e7f/Physical-environment-as-a-source-for-innovation-Investigating-the-attributes-of-innovative-space.pdf Physical environment as a source for innovation: investigating the attributes of innovative space]. Journal of [[knowledge management]], 17(6), 815-827. | * Oksanen, K., & Ståhle, P. (2013). [https://www.researchgate.net/profile/Kaisa_Oksanen2/publication/265099923_Physical_environment_as_a_source_for_innovation_Investigating_the_attributes_of_innovative_space/links/53ff05eb0cf283c3583c1e7f/Physical-environment-as-a-source-for-innovation-Investigating-the-attributes-of-innovative-space.pdf Physical environment as a source for innovation: investigating the attributes of innovative space]. Journal of [[knowledge management]], 17(6), 815-827. | ||
| Line 94: | Line 74: | ||
{{a|Justyna Kurnik}} | {{a|Justyna Kurnik}} | ||
[[Category:Knowledge management]] | [[Category:Knowledge management]] | ||
[[Category:Strategic management]] | [[Category:Strategic management]] | ||
Latest revision as of 04:49, 18 November 2023
We can distinguish several sources of innovation[1]:
- internal research (R & D)
- purchase of new knowledge in the form of patents, licenses, technical services, etc.
- purchase of the so-called: material technology, the innovative devices and machines with improved technical parameters.
- growing importance of technology
- change in market structure or industry
- unexpected technological breakthrough
- changing demographic characteristics of customers
- resource depletion
- research performed in science and academic institutions
- results of market research
- rising competition from low cost producers
- government funding for R&D activities
There are many sources of innovation external and internal to the company, main sources of innovation are[2]:
- changing needs of customers and fluctuation in demand
- technological challenges, unexpected problems to be solved
- creativity and skill and competencies of employees
- market competitors
- goals and objectives of management
- motivation of managers and employees
- open mindedness
- risk taking
- danger of bankruptcy or financial problems
- scientific research, publications
- information from employees, customers and suppliers
- social relations, open communication, internal discourse
Sources of innovation differ between enterprises and industries
According to Drucker, there are seven sources of innovation that can provide the company's success[3]:
- The unexpected - unforeseen success, failure or event
- The incongruity - divergence of real world and expected reality
- Innovation based on process need - improving the efficiency of process, delivering missing parts of it and creating the links
- Changes in industry or market structure that catch everybody unawares - growing or downsizing markets
- Demographics - changes in a population's structure (size, age, status)
- Changes in perception, meaning and mood - changes in customer perspectives and expectations
- New knowledge - scientific or non-scientific breakthroughs that provide the idea of new product or service
Areas in innovation
Many of the most useful innovation come from workforce: both employees and managers. When the workplace environment leads to individual creativity, it provides new multiple solutions and ideas. There are six areas/methods that help people to become the source of innovation[4]:
- challenge - matching people to jobs with optimized challenge with no boredom
- freedom - giving employees autonomy in running the process to feel part of ownership
- resources - keeping some time pressure but with no restricted deadliness
- work-group features - sharing different perspectives and combining ideas
- supervisory encouragement - encouraging risk-taking and accepting failures
- organizational support - collaborating and sharing all information
Partners in innovation
The increasing of developed complex technology and the role of innovation caused that many cooperation agreements entered into force. There are many various type of partners that can become source of innovation[5]:
- other enterprises within the same group
- suppliers of raw materials, equipment or software
- customers
- competitors
- consultants and R&D specialists
- educational institutions
- government and public initiatives
Some research show that the biggest amount of innovation come mostly from clients (25%) and suppliers (24%). The lowest value (3%) belongs to competitors that do not often share their ideas and knowledge[6].
Outsourcing
Nowadays many companies decide to outsource innovation activities, especially in areas that they do not have in-house ability. Outsourcing, despite of negative site as integrating into organization on basic level, it can acquire external knowledge and gain more advanced skills. Moreover, it helps build enterprise's reputation, create new relationships and establish cooperation with group of innovators[7].
| Sources of innovation — recommended articles |
| Knowledge economy — Organizational innovation — Types of organizational change — Industrial park — Development of resources — Network structure — Knowledge management system — Innovation — Centre of excellence |
References
- Adams K., (2005), The Sources of Innovation and Creativity, National Center on Education and the Economy, 31-32.
- Ahonen M., (2009), Sources of Innovative Opportunity and Mass Customization - An Analysis of EMF&Health Business Area, University of Tampere, 3-4.
- Choi J., (2015), Create or Buy - Internal vs. External Source of Innovation and Firm Productivity, University of Oxford, 7.
- Correia A., Braga A., Braga V., (2017), Determinants, Obstacles, Sources and Cooperation to Innovation in Portuguese Firms, using Community Innovation Survey, AIP Publishing, 4-5.
- Feldman, M. P., & Florida, R. (1994). The geographic sources of innovation: technological infrastructure and product innovation in the United States. Annals of the association of American Geographers, 84(2), 210-229.
- Oksanen, K., & Ståhle, P. (2013). Physical environment as a source for innovation: investigating the attributes of innovative space. Journal of knowledge management, 17(6), 815-827.
Footnotes
Author: Justyna Kurnik
