Study note on product innovation

Study note on product innovation

References with some extracted contents

Vinding, AL & Lundvall, B-Å 2004, Product innovation and economic theory: User-producer Interaction in the Learning Economy. in Christensen, Jesper L. ; Lundvall, Bengt-Åke (eds) (ed.), Product Innovation, Interactive Learning and Economic Performance. JAI Press Ltd, Oxford, pp. 101-128. Research on Technological Innovation, Management and Policy, no. 8.

"Product innovations – defined as innovations addressing users not belonging to the innovating firm – are important when it comes to sustain competitive advantage. The business sector allocates more than half their R&D resources to product innovation. Innovation surveys demonstrate that more than half of all firms have introduced at least one product innovation over a three year-period. There are sector differences in this respect but there is little doubt that most firms see product innovation as a necessary element in their business strategies";

"Innovations may be seen as distinct events, which can be dated in time. Empirical work trying to explain innovation has often taken its departure in a list of such dated events.....   we see single innovations as elements in a cumulative process. The outcome of this process may be incremental technical change or discrete leaps in technical opportunities. But, the process from which it emanates is always cumulative – even the most conspicuous single innovation has its roots

in accumulated knowledge and experience";

"We shall regard single innovations as the result of collisions between technical opportunity and user needs. We acknowledge that single innovations might result from pure accidents, but we do not see this as the normal pattern. Innovation takes place when there are new developments either in terms of technological opportunities or in terms of new user needs and normally it is when the two sides meet that innovation takes place";

Su, Z., E. Xie, H. Liu and W. Sun. 2013. "Profiting from product innovation: The impact of legal, marketing, and technological capabilities in different environmental conditions" Mark Lett 24, Springer: 261-276.

"Although product innovation is a key tool for firms competing in the marketplace, innovating firms often fail to obtain economic returns from their product innovations (Koellinger 2008; Pisano 2006). Thus, how an innovating firm can profit from its product innovation represents an important research question (Li et al. 2010; Teece 1986)";

"Teece’s (1986) article ..... suggests that both intellectual property protection and complementary assets are critical for profiting from product innovation (Teece 1986). Following this literature, a number of studies have investigated various factors that contribute to obtaining returns from product innovation";

"Marketing capability concerns a firm’s abilities in environmental scanning, market planning, marketing implementation, and marketing skill development (Su et al. 2010). Environmental scanning enables a firm scan the market to generate and disseminate market information, analyze and understand customer needs, and identify market segments for product innovation; market planning and marketing implementation contribute to launching a product innovation as well as creating customer loyalty; and marketing skill enhances the performance of environmental scanning, market planning, and marketing implementation";

Berends, H., M. Jelinek, I. Reymen and R. Stultiëns. 2014. "Product Innovation Processes in Small Firms: Combining Entrepreneurial Effectuation and Managerial Causation" J PROD INNOV MANAG 2014;31(3):616–635.

"Prior research poses a puzzle about small firms’ innovation processes. On the one hand, an extensive body of research on new product development (NPD) has identified benefits of a formalized process, with well-planned activities and decision points .... : a formal product innovation process is considered part of NPD best practice ..... On the other hand, case study evidence suggests that small firms seldom use such formalized process structures";

"First, most product innovation management research has focused solely on large firms, or has failed to distinguish between large and small firms (Moultrie,  Clarkson, and Probert, 2007). Second, those studies specifically targeting small firm innovation have focused on the antecedents and consequences  of product innovation efforts ...., identifying effects of interorganizational collaborations ....; competitor orientation (Ledwith and O’Dwyer, 2009), organizational structure (Terziovski, 2010), intellectual capital (Leitner, 2011), and the availability of qualified scientists and engineers";

"....small firms have limited resources for product innovation projects ..... Lack of financial resources to cover the costs of innovation was identified as a key barrier in several studies ..... These constraints exacerbate the risks of innovation for small firms, which cannot sustain many failures";

"....small firms typically pursue few innovation projects at any one time—maybe just one, or even none at times (Laforet, 2008). Consequently, their experience in product innovation is often limited. With no need to manage a portfolio of innovation projects at the same time and thus no pressure to select among projects to allocate resources, small firms have neither opportunity nor incentive to routinize innovation or formalize NPD stage-gates or selection procedures, as big firms do";

Pitta, D.A. 2008. "Case study: product innovation and management in a small enterprise" Journal of Product & Brand Management 17/6, Emerald: 416-419.

"Cooper (1999) ['s]...conceptualization features seven elements that he calls seven actionable critical success factors that apply to product innovation. The seven actionable critical success factors are: 1 Solid up-front homework – to define the product and justify the product. 2 Voice of the customer – a slave-like dedication to the market and customer inputs throughout the project. 3 Product advantage – differentiated, unique benefits, superior value for the customer. 4 Sharp, stable and early product definition – before development begins. 5 A well-planned, adequately-resourced and proficiently-executed launch. 6 Tough go/kill decision points or gates – funnels not tunnels. 7 Accountable, dedicated, supported cross-functional teams with strong leaders";

Chandra, M. and J.P. Neelankavil. 2008. "Product development and innovation for developing countries: potential and challenges" Journal of Management Development 27(10), Emerald: 1017-1025.

"Product development is the bloodline for growth for international companies. Product development and innovation allows companies to gain competitive advantage, attract new customers, retain exiting customers, and strengthen ties with their distribution network (Kotler and Keller, 2006; Cooper and Kleinschmidt, 1990)";

"Historically, product development and innovation has been the strong points of companies from fully industrialized countries who through R&D or merger and acquisitions were able to introduce new products that were then marketed globally. These new and innovative products had substantial market penetration in industrialized countries, but had a much smaller sales volumes in less developed countries. Products such as appliances, computers, and telecommunication equipment, when marketed in developing countries never reached the levels attained in most industrialized countries";

"When it comes to less developed countries with smaller markets, these international companies introduce variations of their successful products from the home country. Studies have shown that their attempts have not been successful because of the feeble attempts made by the international companies to attract customers in the developing countries";

"For international companies that target developing countries with new and innovative products, a host of issues impede their efforts to succeed in these markets. There are four major areas that pose problems for international companies in developing new products for the developing markets ....  These are: (1) price-income levels; (2) technology-developmental issues; (3) capital constraints; and (4) creativity";

Howell, J.M., C.M. Shea and C.A. Higgins. 2005. "Champions of product innovations: defining, developing, and validating a measure of champion behavior" Journal of Business Venturing 20, Elsevier: 641–661.

"Studies of product innovation success highlight that champions, individuals who informally emerge to actively and enthusiastically promote innovations through the crucial organizational stages, are necessary to overcome the social and political pressures imposed by an organization and convert them to its advantage. While studies emphasize the importance of champions for keeping innovations alive and thriving, empirical investigations have conceived of champions as either present or absent in the innovation process";

"Case studies of product innovation success highlight internal championing as a critical means by which social and political pressures are applied to overcome organizational inertia and move new product ideas through the phases of small to large project endeavors, market launch, and ultimate market success ...... Moreover, champions who initiate new product development can provide the organization with opportunities to learn about new environmental niches, to create new competencies, and to develop strategic options";

Frédéric Le Roy, Marc Robert & Frank Lasch (2016) Choosing the Best Partner for Product Innovation, International Studies of Management & Organization, 46:2-3, 136-158.

"Innovation-oriented firms must build innovation networks with other stakeholders ..... These networks link firms with series of partners to develop and disseminate innovation. Firms that succeed in creating such innovation networks by including heterogeneous partners enhance their capacity to develop innovative projects";

"Cooperation with noncompetitors is defined as a relationship between at least two firms, organizations, or institutions that do not compete in their respective markets. Their main objective is to combine a certain number, or amount, of resources and competencies to develop an innovative project they normally could not realize on their own. The absence of competition is a key point that helps develop trust between cooperators and acts as motivation to intensify cooperation (Whitley 2002)";

"Vertical alliances with partners increase the level of firm innovation (Tomlinson 2010) and the frequency of product and process innovation (Santamaria and Surroca 2011). Kang and Kang (2010) confirm the positive effects on product innovation through R&D cooperation with universities and customers. Belderbos, Carree, and Lokshin (2004) find that cooperation with suppliers, universities, and research institutions increases labor productivity";