Innovation and Entrepreneurship

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1 Innovation and Entrepreneurship Second Edition John Bessant and Joe Tidd John Wiley & Sons, Ltd

2 Preface Acknowledgements xi xiv Part I Entrepreneurial Goals and Context 1 Chapter 1 The Innovation Imperative 3 Innovation Matters 4 Innovation and Entrepreneurship 10 Innovation Isn't Easy! 12 Managing Innovation and Entrepreneurship 15 What Do We Know about Managing Innovation and Entrepreneurship? 17 Understanding the Innovation Process 19 What Has to be Managed? 23 A Model for Innovation and Entrepreneurship 24 What, Why and When - The Challenge of Innovation Strategy 30 Chapter Summary 38 Key Terms Defined 40 Further Reading and Resources 40 References ' 42 Discussion Questions 42 Team Exercises 43 Assignment Questions 44 Reflection Questions/Assignments Linked to the Case 49 Summary of Web Resources 51 Chapter 2 Social Entrepreneurship and Innovation, 53 Thinking about Innovation 54 Uncommon Heroes ' 58 The Challenge of Social Entrepreneurship 59 Big Can be Beautiful Too 60 The Potential of the 'Bottom of the Pyramid' 65 Challenges in Managing Social Entrepreneurship and Innovation 68 Chapter Summary ' 73 Key Terms Defined 73

3 VI Further Reading and Resources 74 References 74 Discussion Questions 75 Team Exercise 75 Assignment Question 75 Summary of Web Resources 82 Chapter 3 Globalisation, Development and Sustainability 83 Globalisation and Development 84 Globalisation of Innovation 84 National Systems of Innovation 94 Building Capabilities and Creating Value 107 Limits of the Core Competence Approach 110 New Socio-technical Systems 125 Open Systems of Innovation 130 Chapter Summary 136 Discussion Questions 136 Team Exercise 137 Assignment 137 Key Terms Defined 137 Further Reading and Resources 138 References 139 Team Exercise: Identifying Capabilities 150 Summary of Web Resources 151 Part II Recognising the Opportunity 153 Chapter 4 Individual and Organisational Characteristics 155 Linking Creativity, Entrepreneurship and Innovation 156 Personality: Promoting Individual Creativity 158 Processes: Strategies and Stages of Creativity 164 Environment: Creating a Climate for Innovation 172 Developing Personal Capabilities 187 Chapter Summary 191 Discussion Questions 191 Team Exercise: Brainstorming and Spider Diagrams ' 191 Assignment 193 Key Terms Defined 193 Further Reading and Resources i 19 A References 194 Summary of Web Resources 201

4 VII Chapter 5 Sources of Innovation 203 Introduction 204 Where Do Innovations Come From? 204 A Framework for Looking at Innovation Sources 231 How to Search 234 Chapter Summary 237 Key Terms Defined 237 Discussion Questions 238 Team Exercises 239 Further Reading and Resources 239 References 240 Reflection Questions/Assignments Linked to the Case 244 Summary of Web Resources 245 Chapter 6 Searching for Opportunities 247 The Innovation Treasure Hunt 248 A Map of Innovation Search Space 252 Innovation Search Strategies 253 Implementing Search Strategies 264 Tools, Structures and Mechanisms to Enable Search 269 Searching the Innovation Space 283 Absorptive Capacity - Developing the Capability to Search and Use Knowledge 284 Chapter Summary 286 Key Terms Defined 286 Further Reading and Resources 289 References 290 Discussion Questions 290 Team Exercises 291 Summary of Web Resources 296 Part III Finding the Resources 297 Chapter 7 Building the Case 299 Developing the Business Plan ' 300 Forecasting Innovation 306 Assessing Risk, Recognising Uncertainty 315 Anticipating the Resources 320 Chapter Summary 326 Discussion Questions t 326 Key Terms Defined 326 Further Reading and Resources 327

5 VIII References 328 Summary of Web Resources 336 Chapter 8 Exploiting Networks 337 No Man is an Island The Spaghetti Model of Innovation 340 Types of Innovation Networks 341 Networks at the Start-Up 346 Networks on the Inside Networks on the Outside 348 Using Networks to Help Learning 352 Using Networks for Exploration 354 Making Networks Happen - Networks by Design 356 Learning to Manage Innovation Networks 358 Chapter Summary 360 Key Terms Defined 360 Further Reading and Resources 361 References 361 Discussion Questions 362 Team Exercises 362 Assignment Questions 362 Summary of Web Resources 367 Part IV Developing the Venture 369 Chapter 9 Developing New Products and Services 371 Service versus Product Development 372 Products and Service Development Strategies: Success Factors 377 Organisation for Development and Delivery of New Products and Services 385 Processes for New Product and Service Development 390 Tools and Technology to Support Service Innovation 393 Chapter Summary 403 Discussion Questions 403 Team Exercise 404 Assignment 404 Key Terms Defined 405 Further Reading and Resources 405 References 406 Summary of Web Resources 412

6 IX Chapter 10 Creating New Ventures 413 Types of New Venture 414 Context for Entrepreneurship 419 Process and Stages for Creating a New Venture 429 Assessing the Opportunity 430 Developing the Business Plan 433 Acquiring the Resources and Funding 434 Harvesting the Venture: Growth and Exit Strategies 442 Developing Personal Capabilities 447 Chapter Summary 450 Discussion Questions 450 Team Exercise 450 Assignment 451 Key Terms Defined 451 Further Reading and Resources 452 References 453 Summary of Web Resources 458 Part V Creating Value. 459 Chapter 11 Exploiting Knowledge and Intellectual Property 461 Generating and Acquiring Knowledge 462 Identifying and Codifying Knowledge 464 Storing and Retrieving Knowledge 468 Sharing and Distributing Knowledge 470 Translating Knowledge into Innovation 475 Exploiting Intellectual Property 481 Copyright 486 Design Rights 486 Licensing IPR 488 Chapter Summary 496 Discussion Questions 496 Team Exercise 497 Assignment 497 Key Terms Defined 497 Further Reading and Resources 498 References 499 Summary of Web Resources 502

7 Chapter 12 Creating Value and Growing Ventures Creating Economic and Social Value Innovation and Firm Performance Choosing a Business Model Growing the Venture Chapter Summary Discussion Questions Key Terms Defined Further Reading and Resources References Summary of Web Resources Chapter 13 Learning to Manage Innovation Introduction Entrepreneurship as the Engine for Innovation Making Innovation Happen Recognising the Opportunity Finding the Resources Developing the Venture Innovation Strategy - Having a Clear Sense of Direction Building an Innovative Organisation Networking for Innovation Learning to Manage Innovation Innovation Auditing in Practice Managing Innovation and Entrepreneurship Chapter Summary Key Terms Defined Further Reading and Resources Discussion Questions Team Exercise Assignment Questions Summary of Web Resources Index 573

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