Sources of Innovations

Sources of Innovations - Where do they originate?

 

The question of where innovations come from has intrigued researchers and practitioners for decades. In 1988, Eric von Hippel highlighted the diverse origins of innovations, dispelling the notion that all innovation work is solely undertaken by the focal firm. However, despite this observation, the prevailing assumption that the focal firm is the sole driver of innovation still persists.

 

In reality, innovations can emerge from a multitude of sources, creating a rich and dynamic ecosystem of innovation. Individual inventors, firms, universities, government laboratories, and incubators all contribute to the generation of new ideas and technologies. Furthermore, cross-industry collaboration and knowledge exchange play a significant role in fostering innovation. The interplay between these various sources of innovation creates a complex and interconnected system.

Depending on the field and specific circumstances, most innovations are the result of a combination of multiple sources. This underscores the importance of understanding and harnessing the networks that link these sources together. Systems of innovation sources, represented by a web of relationships and interactions, become crucial in facilitating the flow of ideas and knowledge.

 

When examining the collaborations that drive innovation, focal firms stand out as key players. These firms, which own the core design, often collaborate closely with their customers, suppliers, and local universities. These collaborations allow for the exchange of insights, needs, and expertise, fueling the innovation process.

Over time, certain best practices have emerged within this collaborative context. The concept of "lead-user," discussed by Lüthje and Herstatt (2004), emphasizes the importance of involving innovative customers in the development process. Similarly, "voice of customer" activities, as described by Cooper and Dreher (2010), serve as a valuable means of gathering customer feedback and insights. The "black-box" development approach, as explored by Koufteros et al. (2007), encourages firms to focus on the outcomes and functional requirements of innovations, rather than the specific technical details. Additionally, the "triple-helix" model of innovation, discussed by Brem and Radziwon (2017), highlights the collaborative relationships between academia, industry, and government as catalysts for innovation.

 

Interestingly, focal firms are not limited to collaborating solely with customers, suppliers, and universities. They may also engage in partnerships with competitors and complementors. However, the lines between complementor and competitor can become blurred in these complex relationships, adding an additional layer of complexity to the innovation landscape.

 

Finally, a potent source of innovations can be 'neighbouring spaces'. Ramon Vullings (2015) describes how cross-industry innovation principles can be used to discover, import and remix ideas from neighbouring spaces.

 

A system of sources of innovations is shown in the figure below.