Now in its seventh edition, Managing Innovation: Integrating Technological, Market and Organizational Change enables graduate and undergraduate students to develop the unique skill set and the foundational knowledge required to successfully manage innovation, technology, and new product development. This bestselling text has been fully updated with new data, new methods, and new concepts while still retaining its holistic approach the subject. The text provides an integrated, evidence-based methodology to innovation management that is supported by the latest academic research and the authors’ extensive experience in real-world management practice. Students are provided with an impressive range of learning tools—including numerous case studies, illustrative examples, discussions questions, and key information boxes—to help them explore the innovation process and its relation to the markets, technology, and the organization. “Research Notes" examine the latest evidence and topics in the field, while "Views from the Front Line" offer insights from practicing innovation managers and connect the covered material to actual experiences and challenges. Throughout the text, students are encouraged to apply their knowledge and critical thinking skills to business model innovation, creativity, entrepreneurship, service innovation, and many more current and emerging approaches and practices.

Table of Contents:
About the Authors v Preface to the Seventh Edition vi How to Use This Book: Key Features viii 1 Innovation – What It Is and Why It Matters 1 1.1 The Importance of Innovation 2 1.2 Innovation Is Not Just High Technology 4 1.3 It’s Not Just Products . . . 7 1.4 Innovation and Entrepreneurship 9 1.5 Strategic Advantage Through Innovation 10 1.6 Old Question, New Context 15 1.7 The Globalization of Innovation 16 1.8 So, What Is Innovation? 19 1.9 A Process View of Innovation 22 1.10 The Scope for Innovation 24 Four Dimensions of Innovation Space 24 Mapping Innovation Space 28 1.11 Key Aspects of Innovation 29 Incremental Innovation – Doing What We Do but Better 30 Component/Architecture Innovation and the Importance of Knowledge 31 Platform Innovation 33 The Innovation Life Cycle – Different Emphasis Over Time 34 Discontinuous Innovation – What Happens When the Game Changes? 37 1.12 Innovation Management 42 Summary 44 Further Reading 45 Other Resources 47 References 48 2 Digital Is Different? 50 2.1 What Is Digital Innovation? 51 2.2 Is It New? 54 2.3 Is It Revolutionary? 55 2.4 What Does It Mean for Innovation? 56 2.5 What Does It Mean for Innovation Management? 59 The New Digital Toolkit 60 New Ways of Thinking About Innovation Management 64 Summary 67 Further Reading 67 Other Resources 68 References 68 3 Innovation as a Core Business Process 70 3.1 The Innovation Journey 70 3.2 Different Circumstances Similar Management Challenges 72 3.3 Variations on a Theme 73 Services and Innovation 73 Service Innovation Emphasizes the Demand Side 77 The Extended Enterprise 79 Innovation in the Non-commercial Arena 79 Not-for-Profit Innovation 80 Social Entrepreneurship 82 3.4 Cross Sector Differences 84 Organizational Size 84 Project-based Organizations 85 Platform Innovation 85 Ecosystems 86 The Influence of Geography 86 Regulatory Context 87 Industry Life Cycle 87 3.5 Do Better/Do Different 88 3.6 A Contingency Model of the Innovation Process 90 3.7 Evolving Models of the Process 90 3.8 Can We Manage Innovation? 93 3.9 Building and Developing Routines across the Core Process 95 Navigating the Negative Side of Routines 95 3.10 Learning to Manage Innovation 96 Identifying Simple Archetypes 97 Measuring Innovation Success 98 What Do We Know About Successful Innovation Management? 99 Success Routines in Innovation Management 101 Key Contextual Influences 107 3.11 Beyond the Steady State 108 Summary 108 Further Reading 109 Other Resources 109 References 110 4 Developing an Innovation Strategy 115 4.1 ‘Rationalist’ or ‘Incrementalist’ Strategies for Innovation? 116 Rationalist Strategy 117 Incrementalist Strategy 120 Implications for Management 121 4.2 Innovation ‘Leadership’ versus ‘Followership’ 123 4.3 The Dynamic Capabilities of Firms 126 Institutions: Finance, Management and Corporate Governance 126 Learning and Imitating 128 4.4 Appropriating the Benefits from Innovation 130 4.5 Exploiting Technological Trajectories 136 4.6 Developing Firm-specific Competencies 139 Hamel and Prahalad on Competencies 139 Assessment of the Core Competencies Approach 141 Developing and Sustaining Competencies 144 4.7 Globalization of Innovation 149 4.8 Enabling Strategy Making 154 Routines to Help Strategic Analysis 154 Portfolio Management Approaches 155 Summary 157 Further Reading 158 Other Resources 158 References 159 5 Building the Innovative Organization 164 5.1 Shared Vision, Leadership and the Will to Innovate 166 5.2 Appropriate Organizational Structure 172 5.3 Key Individuals 176 5.4 High Involvement in Innovation 179 5.5 A Roadmap for the Journey 183 5.6 Effective Team Working 186 5.7 Creative Climate 192 5.8 Boundary-Spanning 204 Contents xiii Summary 207 Further Reading 207 Other Resources 208 References 209 6 Sources of Innovation 214 6.1 Where Do Innovations Come From? 215 6.2 Knowledge Push 216 6.3 Need Pull 218 6.4 Making Processes Better 220 6.5 Crisis-driven Innovation 222 6.6 Whose Needs? The Challenge of Underserved Markets 223 6.7 Emerging Markets 227 6.8 Toward Mass Customization 229 6.9 Users as Innovators 232 6.10 Using the Crowd 235 6.11 Extreme Users 237 6.12 Prototyping 238 6.13 Watching Others – and Learning from Them 239 6.14 Recombinant Innovation 240 6.15 Design-led Innovation 241 6.16 Regulation 243 6.17 Futures and Forecasting 243 6.18 Accidents 244 Summary 245 Further Reading 246 Other Resources 247 References 248 7 Search Strategies for Innovation 251 7.1 The Innovation Opportunity 252 Push or Pull Innovation? 252 Incremental or Radical Innovation? 253 Exploit or Explore? 254 7.2 When to Search 254 7.3 Who Is Involved in Search? 255 7.4 Where to Search – The Innovation Treasure Hunt 257 Ambidexterity in Search 258 Framing Innovation Search Space 258 7.5 A Map of Innovation Search Space 260 Zone 1 261 Zone 2 261 Zone 3 262 Zone 4 262 7.6 How to Search 263 7.7 Absorptive Capacity 266 7.8 Tools and Mechanisms to Enable Search 268 Managing Internal Knowledge Connections 268 Extending External Connections 270 Summary 272 Further Reading 272 Other Resources 273 References 274 8 Innovation Networks 277 8.1 The ‘Spaghetti’ Model of Innovation 279 8.2 Innovation Networks 281 Why Networks? 282 Emergent Properties in Networks 284 Learning Networks 284 Breakthrough Technology Collaborations 286 Regional Networks and Collective Efficiency 286 Mobilizing Networking 287 8.3 Networks at the Start-up 288 8.4 Networks on the Inside . . . 290 8.5 Networks on the Outside 291 8.6 Networks into the Unknown 296 8.7 Managing Innovation Networks 298 Configuring Innovation Networks 298 Facing the Challenges of Innovation Networks 299 Summary 300 Further Reading 301 Other Resources 301 References 302 9 Dealing with Uncertainty 304 9.1 Meeting the Challenge of Uncertainty 305 9.2 The Funnel of Uncertainty 306 9.3 Planning Under Uncertainty 307 9.4 Forecasting Innovation 311 Customer or Market Surveys 313 Internal Analysis, for Example, Brainstorming 314 External Assessment, for Example, Delphi 314 Scenario Development 315 9.5 Estimating the Demand for Innovations 316 9.6 Assessing Risk, Recognizing Uncertainty 318 Risk as Probability 319 Perceptions of Risk 321 9.7 Assessing Opportunities for Innovation 325 Financial Assessment of Projects 325 How to Evaluate Learning? 326 How Practicing Managers Cope 334 9.8 Decision Making at the Edge 336 Selection and Reframing 336 9.9 Mapping the Selection Space 339 Summary 345 Further Reading 345 Other Resources 345 References 346 10 Creating New Products and Services 349 10.1 Processes for New Product Development 350 Concept Generation 353 Project Selection 353 Product Development 354 Product Commercialization and Review 355 Lean and Agile Product Development 355 Lean Start-up 356 10.2 Factors Influencing Product Success or Failure 358 Commitment of Senior Management 362 Clear and Stable Vision 362 Improvisation 363 Information Exchange 363 Collaboration under Pressure 364 10.3 Influence of Technology and Markets on Commercialization 364 10.4 Differentiating Products 368 10.5 Building Architectural Products 371 Segmenting Consumer Markets 372 Segmenting Business Markets 373 10.6 Commercializing Technological Products 378 10.7 Implementing Complex Products 381 The Nature of Complex Products 382 Links Between Developers and Users 382 Adoption of Complex Products 384 10.8 Service Innovation 385 10.9 Diffusion of Innovations 391 Processes of Diffusion 391 Factors Influencing Adoption 393 Characteristics of an Innovation 394 Summary 399 Further Reading 399 Other Resources 400 References 401 11 Exploiting Open Innovation and Collaboration 405 11.1 Joint Ventures and Alliances 406 Why Collaborate? 406 11.2 Forms of Collaboration 410 11.3 Patterns of Collaboration 413 11.4 Influence of Technology and Organization 415 Competitive Significance 416 Complexity of the Technology 417 Codifiability of the Technology 418 Credibility Potential 418 Corporate Strategy 419 Firm Competencies 419 Company Culture 419 Management Comfort 420 Managing Alliances for Learning 420 11.5 Collaborating with Suppliers to Innovate 427 11.6 User-led Innovation 431 11.7 Extreme Users 434 Co-development 435 Democratic Innovation and Crowdsourcing 436 11.8 Benefits and Limits of Open Innovation 438 Summary 441 Further Reading 442 Other Resources 442 References 443 12 Promoting Entrepreneurship and New Ventures 448 12.1 Ventures, Defined 449 Profile of a Venture Champion 450 Venture Business Plan 453 Funding 453 Crowd-funding 456 Corporate Venture Funding 456 Venture Capital 458 12.2 Internal Corporate Venturing 460 To Grow the Business 463 To Exploit Underutilized Resources in New Ways 463 To Introduce Pressure on Internal Suppliers 463 To Divest Noncore Activities 463 To Satisfy Managers’ Ambitions 464 To Spread the Risk and Cost of Product Development 464 To Combat Cyclical Demands of Mainstream Activities 464 To Learn About the Process of Venturing 464 To Diversify the Business 465 To Develop New Competencies 465 12.3 Managing Corporate Ventures 467 12.4 Assessing New Ventures 470 Structures for Corporate Ventures 472 Direct Integration 474 Integrated Business Teams 474 New Ventures Department 474 New Venture Division 474 Special Business Units 475 Independent Business Units 475 Nurtured Divestment 476 Complete Spin-off 476 Learning Through Internal Ventures 477 12.5 Spin-outs and New Ventures 479 12.6 University Incubators 482 12.7 Growth and Performance of Innovative Small Firms 489 Summary 499 Further Reading 499 Other Resources 500 References 501 13 Capturing the Business Value of Innovation 505 13.1 Creating Value through Innovation 506 13.2 Innovation and Firm Performance 510 13.3 Exploiting Knowledge and Intellectual Property 514 Generating and Acquiring Knowledge 514 Identifying and Codifying Knowledge 515 Storing and Retrieving Knowledge 518 13.4 Sharing and Distributing Knowledge 520 Converting Knowledge into Innovation 522 13.5 Exploiting Intellectual Property 525 Patents 525 Copyright 529 Design Rights 529 Licensing IPR 529 13.6 Business Models and Value Capture 532 Summary 540 Further Reading 540 Other Resources 541 References 542 14 Creating Social Value 545 14.1 Innovation and Social Change 546 14.2 The Social Innovation Process 548 Social Innovation as a Learning Laboratory 552 Public Sector Innovation 552 Supporting and Enabling Social Innovation 552 Challenges in Social Innovation 553 14.3 Inclusive Innovation 554 14.4 Humanitarian Innovation 556 14.5 The Challenge of Sustainability-led Innovation 557 14.6 A Framework Model for Sustainability-led Innovation 559 14.7 Responsible Innovation 567 Summary 568 Further Reading 569 Other Resources 569 References 570 15 Capturing Learning from Innovation 571 15.1 What We Have Learned About Managing Innovation 572 15.2 How to Build Dynamic Capability 573 15.3 How to Manage Innovation 575 15.4 The Importance of Failure 576 15.5 Tools to Help Capture Learning 577 Postproject Reviews (PPRs) 577 Proceduralizing Learning 578 Agile Innovation Methods 578 Benchmarking 579 Capability Maturity Models 579 15.6 Innovation Auditing 580 15.7 Measuring Innovation Performance 581 15.8 Measuring Innovation Management Capability 581 15.9 Reflection Questions for Innovation Auditing 583 Search 583 Select 584 Implement 584 Proactive Links 586 Learning 587 15.10 Developing Innovation Capability 588 15.11 Final Thoughts 590 Summary 591 Further Reading 591 Other Resources 591 References 592 Index I-1