expertise to wide collaboration and knowledge mixing and sharing ; from hard skills to soft skills ; from classrooms to flexible spaces and real world settings .
Innovation management covers a broadbased research field , drawing from an array of perspectives including science , economics , engineering and psychology .
Innovation management highlights the experiences and performance of business enterprises . But , now these innovation principles are also being applied in the for-purpose sector on social innovation projects and on solving large complex societal challenges , and in policy innovation and better service delivery by the public sector .
The key lesson from innovation management studies is that there is more than one type of innovation , and that it is crucial to understand the dynamics of innovation – namely , how innovation works to make a positive impact on organisations and the community at large .
Innovation is not restricted to technology and research advances , but neither is innovation merely the demonstration of creativity and entrepreneurial flair . Innovation must have value and impact .
Dodgson ( 2017 ), Gann and Dodgson ( 2019 ) and Bessant ( 2022 ) provide significant headline insights about the current and changing face of innovation , as follows :
• Innovation is rarely a solitary pursuit , but likely involves investment and contributions from multiple actors and disciplines . Collaboration is key . Different strands of knowledge are woven together .
• Successful innovations hinge on execution , not the novel idea itself .
• Open innovation ( including innovation user communities ) is the most potent recent change in innovation management .
• Entrepreneurs are everywhere , solving problems out of necessity or crisis---not just the Silicon Valley stereotype .
• Much innovation does not rely on traditional R & D processes and investment , and many innovations are not protected by formal intellectual property rights , but by speed of changes .
• Shifts in the economy from products to services to experiences , and the rising importance of intangible capital goods like design , affect where and how innovation occurs — not just in large manufacturing firms but in startups , service providers and in changed business models of any enterprise .
• Greater recognition is warranted for the significance of the human or behavioural dimensions of innovation in creating social and economic value from doing something new .
Such insights provide useful intelligence for economic development professionals in their efforts to assist communities to reclaim innovation in a way that suits them .
Economic development professionals can act as important agents of change for businesses and communities . By understanding a wider view of innovation and how it can result in communities that are great places in which to work , live and play , they are key to helping communities shape their future as successful innovation districts , with the economic and social benefits this brings .
DIVERSITY AND DYNAMICS OF INNOVATION Innovation is not an end in itself . Rather , innovation is crucial for social and economic progress and needs to be managed in order to be beneficial .
A prerequisite is to understand different types of innovation . Typical distinctions are made between incremental or sustaining innovation ( being small , steady improvements in products , services , systems or processes to keep the enterprise going ) versus radical innovation , where enterprises make a significant transformational change in their current market or industry , often driven by technology innovation . This is different again from disruptive innovation , where enormous step-change advances alter the entire market or business model in which the enterprise exists .
In practical terms , organisations innovate in the following ways :
• new products and services to establish the business in new markets ;
• enhanced existing products and services to stand out from the competition ;
• improved processes and policies to strengthen the operations of the business ;
• effective use of business resources and cost savings ;
• unique business models to capitalise on new or additional income streams .
Another distinguishing feature is the difference between innovation-push and innovation-pull . Nieminen ( 2018 ) explains this distinction as follows :
Push-based models to innovation are more internally and technologically oriented . Push-oriented organisations just focus on market challenges and the best ways to address these challenges , usually with new technology .
Classic examples are Apple , IKEA and virtually all pharmaceutical companies .
Figure 1 . Stage-Gate phases
ECONOMIC DEVELOPMENT JOURNAL VOL 15 NO 2 2022 07