Sources of Innovation

Exploitation of the unexpected is a difficult activity but one which has the potential for 

There are many ways in which innovations can arise and be brought to the market 

For example one area well known in the chemical industry is process de-bottlenecking. Another example is the need for more environmentally friendly processes. Drucker s example is plate glass making by the float glass process (Pilkingtons). 

Indicators of Impending Change in Industry Structure Drucker lists four scenarios where this might happen  

Examples of this are the late nineties phenomenon of divestments, mergers and of take-overs in the oil, chemical and pharmaceutical industries the focus on core competencies and the extensive use of subcontracting/outsourcing. 

---

The R D function itself will be organized from company to company in very different ways. In some firms, the responsibiUty for innovation will be broadly shared and a distinct R D unit may cease to exist. In others, technical developments from an R D lab will be the principal source of innovation for the business. In still others, the primary task of the R D or technology group will be to obtain technology from outside the firm. Those involved in R D will need to make certain that their knowledge and talents impact the business irrespective of their precise function. The innovation process will become less linear (Fig. 8) as more feedback loops, technology transfer, and cooperative efforts are involved. 

E. von Hippel, The Sources of Innovation, Oxfoid Univeisity Piess, New Yoik, 1988. 

Perform a fact-based diagnosis. Innovation can feel rather elusive, but in reality there is nothing magical about it. The innovation process can be assessed, like every other core process. Typically, core beliefs about sources of innovation in the company would be identified and challenged with facts and industry benchmarks. Equal attention should be given to the... 

Pearce and Yagi (2004) suggest that there are four particular sources of methodological innovation in tourism research, some of which can be applied directly to tourist behaviour study. The four sources of innovation derive from ... 

As the flow of new chemical molecules dries up, the chemical industry needs to look to other sources of innovation in addition to traditional chemical research, and also ensure that it captures the maximum value of each innovation. In order to do both successfully, chemical companies have to break down their traditional inward orientation, determine explicit strategies for innovation, and mimic the business patterns and mentality of successful venture capitalists and new startups to take advantage of outside resources. Among the attractive new technological sources of innovation that they should explore are biotechnology and e-commerce (see Chapters 6 and 7). 

In addition, they need to consider the area for innovation here whether they are strong in in-house R D, for example, or whether they have major strengths or gaps in other areas of opportunity such as effectiveness in services or other non-traditional parts of the value chain, or in the new technologies. Providing services, especially in the application of chemicals, is a strength that has become an increasingly important source of innovation for chemical companies (see Chapter 3). 

Dow has also had some success using environmental benefits as a source of innovation in new product development. These include ... 

In all of these efforts to achieve greater predictive capability, the understanding of basic material science Is a primary source of Innovation. Some aspects of an overall approach to the materials durablllty/llfetlme prediction problem are Illustrated in the following examples of on-golng research. These happened to be at NBS, but they are typical of work In other laboratories. 

Furthermore, the results achieved sowed the seeds for future developments which are under investigation in ENSCR/CEVA laboratories (1) the exploration of additional marine algae as sources of innovative carbohydrate-based materials and (2) the possibility of exploiting intact oligoalginates as original hydrophilic moieties for the production of new surfactants and glycopolymers. 

Guezennec, J. 2002. Deep-sea hydrothermal vents A new source of innovative bacterial exopolysaccharides of biotechnological interest J. Ind. Microbiol. Biotechnol. 29, 204-208. 

Since World War II universities have been considered as elements in industrial develppment of countries, and more recently in terms of their functions as sources of innovative ideas for economic regeneration. This article examines the question of how universities should fulfill this role. 

This classic textbook treats the several phases of R D in several R D intensive industries. In Chapter 8 on major pharmaceutical innovations (originally the dissertation of co-author Jerome Schnee) data are presented on the sources of Innovations for 68 of the most widely used drugs in the U.S. 

Leonard-Barton, D. (1995), Wellsprings of Knowledge Building and Sustaining the Sources of Innovation, Harvard Business School Press, Boston. 

Item 6 also closes the loop as shown in Figure 3.1, taking collaboration back to further supply chain innovation — with these innovations coming from inside the supply chain. A Stage 3 effort should not be a one-shot affair after the initial effort, improvements should continue. Once established, the supply chain partnership becomes a source of innovations. 

In contrast to the traditional view of innovative firms and employees, research in the field of user Innovation has shown that users of products and services can be an Important functional source of innovation as well (von Hippel 1976). User innovators are firms or individuals for whom the principal motivation to develop a new product or service is their own need to use it. Here, research has focused on what motivates user innovation and on which resources like knowledge and network position users draw to innovate (Kratzer and Lett 2009 Liithje 2004 Liithje et al. 2005]. Research has established the construct of lead usemess as the main antecedent of user innovation. Lead users are Individual users with two main characteristics First, they are at the leading edge of trends in a marketplace and thus experience needs ahead of other users. Second, they gain high benefits from obtaining solutions to their needs (von Hippel 1986]. Lead users are more likely to innovate and also more likely to develop innovations of higher commercial attractiveness (Franke etal. 2006]. 

---