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Contents

About the Authors xi Preface xiii Acknowledgements xv How to Use This Book xvii Part I Foundations of Managing Innovation 1 Chapter 1 What Is Innovation - And Why Does It Matter? 3 What Is Innovation? 3 Why Does Innovation Matter? 9 To Whom? 10 Innovation Isn't Easy! 10 Can We Manage Innovation? 12 The Case for Strategic Innovation Management 13 Summary 16 Further Resources 16 References 17 Chapter 2 Innovation Strategy 21 Why Strategy? 21 What's in an Innovation Strategy? 22 Strategy at Different Levels 33 Dynamic Capability 35 Summary 37 Further Resources 37 References 38 Chapter 3 Identifying Strategic Capabilities 41 The Resource-Based View 41 Distinguishing Capabilities from Resources 42 Assessing Capabilities 46 Creating and Capturing Value 53 Beware of Core Rigidities 55 Summary 57 Further Resources 57 References 57 Chapter 4 Leadership and Organization of Innovation 61 The Innovative Organization 61 Innovation Leadership 62 Collective and Social 65 Context and Climate 72 Summary 76 Further Resources 76 References 77 Chapter 5 Innovation as a Process 81 Beyond Spengler 81 A Map of the Process 82 Managing the Process 86 Learning to Manage Innovation 90 The Problem of Partial Models 91 Summary 94 Further Resources 94 References 96 Chapter 6 Sources of Innovation 97 Where Do Innovations Come From? 97 Knowledge Push 98 Need Pull. . . 99 Making Processes Better 101 Whose Needs? Working at the Edge 103 Crisis Driven Innovation 105 Towards Mass Customization 107 Users as Innovators 107 Watching Others - and Learning from Them 110 Recombinant Innovation 111 Regulation 111 Futures and Forecasting 112 Design-driven Innovation 113 Accidents 114 Summary 116 Further Resources 116 References 117 Chapter 7 Search Strategies for Innovation 119 Making Sense of the Sources 119 The Innovation Treasure Hunt 122 Innovation Search Strategies 127 Strategies for Searching 131 Innovation Networks 133 Knowledge Management 134 Learning to Search 135 Summary 137 Further Resources 137 References 138 Chapter 8 Forecasting Emerging Opportunities for Innovation 141 Forecasting 141 Customer or Market Surveys 143 Internal: Brainstorming 144 External: Benchmarking 145 Scenario Development 149 Summary 156 Further Resources 156 References 157 Chapter 9 Selecting Innovation Projects 159 Why is Selection a Challenge? 159 Choosing between Projects 162 Summary 178 Further Resources 178 References 179 Chapter 10 Developing New Products and Services 181 The New Product/Service Development Process 181 Success Factors 186 Service Development 188 Tools to Support New Product Development 193 Summary 199 Further Resources 199 References 200 Chapter 11 Developing Business and Talent through Corporate Venturing 203 Internal Venturing and Entrepreneurship 203 Why Do It? 205 Managing Corporate Ventures 211 Strategic Impact of Ventures 219 Summary 220 Further Resources 220 References 220 Chapter 12 Commercialization and Diffusion of Innovations 223 Why Adopt Innovations? 223 Models of Diffusion 227 Factors Influencing Adoption 230 Applying Diffusion to Innovation Strategy 237 Summary 240 Further Resources 240 References 240 Chapter 13 Exploiting Knowledge and Intellectual Property 243 Innovation and Knowledge 243 Summary 260 Further Resources 260 References 261 Chapter 14 Business Models and Capturing Value 263 What's a Business Model? 263 Generic and Specific Business Models 267 Why Use Business Models? 268 Building a Business Model 269 Business Model Innovation 273 Summary 275 Further Resources 275 References 275 Chapter 15 Capture Value: Learning to Manage Innovation 277 The Story So Far . . . 277 Making Innovation Happen 278 Learning in Organizations 280 Innovation Auditing 281 Innovation Auditing in Practice 288 Dynamic Capability and Changing Our Routines 291 Summary 292 Further Resources 292 References 293 Part II The Innovation Frontier 295 Chapter 16 Users as Innovators 297 Users Aren't Passive 297 Lead Users 300 Extreme Users 303 Co-development 304 Democratic Innovation and Crowdsourcing 305 Summary 308 Further Resources 308 References 309 Chapter 17 Exploiting Open Innovation and Strategic Alliances 311 Open Innovation 311 Benefits and Limits of Open Innovation 315 Joint Ventures and Strategic Alliances 323 Summary 326 Further Resources 326 References 326 Chapter 18 Exploiting Discontinuous Innovation 331 Beyond the Steady State 332 The Problem - and the Opportunity - in Discontinuous Innovation 333 Innovation Lifecycles: From Discontinuity to Steady State 335 Discontinuous Can Be Disruptive 337 Managing Discontinuous Innovation 343 Dealing with Discontinuity 344 Summary 347 Further Resources 347 References 348 Chapter 19 Social Innovation 351 What Is 'Social Innovation'? 352 Definitions and Exploration of the Core Idea 355 The Challenge of Social Entrepreneurship 358 Enabling Social Innovation 359 Why Social Innovation? 361 Summary 367 Further Resources 367 References 368 Chapter 20 Innovation in Developing and Emerging Economies 371 Globalization and Innovation 371 Looking Back 373 Building BRICs: The Rise of New Players on the Innovation Stage 374 Developing Countries 383 Summary 387 Further Resources 387 References 388 Chapter 21 Sustainability 389 The Challenge of Sustainability-led Innovation 389 We've Seen This Before 391 Sustainability-led Innovation 392 Managing the Innovation Process for Sustainability 399 Responsible Innovation 402 Summary 404 Further Resources 404 References 405 Index 409

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