Radical and open innovation : the challenge for established firms

Abstract

Past research has shown that breakthrough innovations are often prevalent in the context of entrants rather than incumbents. There are many challenges associated with radical and open innovation initiatives for established firms. Innovation theory provides insights into one main challenge which is the definition of innovation and innovativeness itself especially with regards to its level of radicalism. The shift towards the paradigm of open innovation described by Chesbrough has made it even harder for established companies to set a strategy for managing innovation. This thesis draws on academic research as well as practitioners of innovation management recommendations to prescribe innovation strategies together with key success factors. It focuses on the case of "Innovation centers" - pockets of innovation-minded employees embedded in the larger structure. These innovation centers encompass different types of initiatives such as incubation and acceleration, rapid prototyping, identification of strategic partnerships, trend watching and ethnography. This thesis provides an illustration of innovation centers through a study of the organizational setup and challenges encountered by four innovation centers.