Innovation strategy

Question 1

Strategy

Answer 1

Strategy is the determination of long term goals of a business as well as suitable steps and the allocation of resources to attain them. Strategy intends to establish long-term competitive advantage.

questions innovation strategy?
What is our competitive advantage and how can we sustain it?
▪ What are the products & services we want to sell in five years?
▪ Do we want to be a technology pioneer or a follower?
▪ How much money do we want to invest in research & development?

Question 2

Strategy development

Answer 2

Question 3

Which resources and capabilities as source of sustainable competitive advantage?

Answer 3

Question 4

Resources for innovation

Answer 4

▪ Financial resources
▪ Human resources
▪ Technological resources: both tangible and intangible
▪ Marketing resources: ownership and value of brands,
access to lead markets
▪ Organizational resources: routines, procedures and practices
▪ Networking resources: partners and level of trust within them

Question 5

Key pillars of a successful innovation strategy

Answer 5

• objectives
• areas of focus
• type of innovation & accepted risk
• budget & resources
• R&D organization

Question 6

Ideal type innovation strategies

Answer 6

• objectives, type of innovation, risk acceptance, knowledge sources
• proactive, active, reactive, passive

Question 7

Market pull and problems

Answer 7

Marketing-oriented managers direct engineers and scientists into what appear to be attractive markets. The question of how to fulfill these needs comes second.

Problems:
▪ Focus on most easily
identified needs (but with
minor potential)
▪ Once a technical solution to
the respective need is found,
one may be too focused on
this particular application
▪ Market is locked into present
products and can only think of
incremental improvements

Question 8

Technology push and problems

Answer 8

Engineers and scientists look for new technologies with good commercialization potential; the question of what to make and which needs to fulfill with them comes second.

Problems:
Focus on what can most easily
be researched
▪ Scientists might be too focused
on one particular solution to a
problem (“their” solution)
▪ Possible mismatch between
innovation ideas based on
technology push and corporate
interest