Managing Innovation is an established, bestselling text for MBA, MSc and advanced undergraduate courses on innovation management, management of technology, new product development and entrepreneurship. It is also widely used by managers in both the services and manufacturing sectors.

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 Matters 3 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 ... 46 Summary and Further Reading 53 References 55 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 Process 82 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 ... 234 5.3 Need Pull ... 236 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 ... 299 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 ... 311 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 Commercialization 421 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 Collaboration 461 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 Ventures 505 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 Capability 632 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