INNOVATION
MANAGEMENT
UGENT
2024 - 2025 Prof. Verleye
,Inhoudsopgave
1 THE BASICS ..................................................................................................................................... 6
1.1 COURSE OBJECTIVES ................................................................................................................................ 6
1.2 What is Innovation? ................................................................................................................................ 6
1.2.1 SCHUMPETER ......................................................................................................................................... 6
1.2.2 PORTER ................................................................................................................................................... 6
1.2.3 ROGERS (PERCEPTION, SUBJECTIVE) ...................................................................................................... 6
1.2.4 DIFFERENT LEVELS OF NEWNESS ........................................................................................................... 7
1.2.5 DIFFERENT TYPES OF INNOVATION ........................................................................................................ 7
1.2.6 EXAMPLE ................................................................................................................................................ 7
1.3 WHY CARE ABOUT INNOVATION? ........................................................................................................... 8
1.3.1 FAILURE AS A RISK (von den eichen, sneider & hall) .............................................................................. 8
1.3.2 NEGATIVE EXTERNALITIES (schilling) ................................................................................................ 8
1.3.3 SUSTAINABILITY POTENTIAL .............................................................................................................. 9
1.3.4 NEED FOR INNOVATION MANAGEMENT ............................................................................................. 11
1.3.5 INSPIRATION PERSPECTIVE (1) ............................................................................................................. 11
1.3.6 HARD WORK PERSPECTIVE (2) ........................................................................................................ 13
1.3.7 ALTERNATIVE PERSPECTIVE (3) ............................................................................................................ 14
1.4 INNOVATION ......................................................................................................................................... 15
1.4.1 RANKING THE MOST INNOVATIVE COMPANIES ......................................................................... 15
1.5 IMPORTANCE OF SERVICE INNOVATION (TOT EINDE HOOFDSTUK NIET GEZIEN IN LES) ...................... 17
1.5.1 TWO PERSPECTIVES .............................................................................................................................. 17
1.6 SUSTAINABILITY AS THE NEW FRONTIER? ............................................................................................. 20
1.6.1 MAINSTREAM VS MINORITY VIEW ............................................................................................... 20
2 SYSTEMIC VIEW ON INNOVATION (SYSTEM LEVEL, M1) ................................................................ 21
2.1 EMERGENCE OF SYSTEM VIEW.............................................................................................................. 21
2.1.1 MOVING AWAY FROM TECH PUSH MODELS........................................................................................ 21
2.1.2 MOVING AWAY FROM FIRM-CENTRICITY ............................................................................................ 22
2.2 WHAT IS SYSTEMIC VIEW ON INNOVATION? ........................................................................................ 22
2.3 RELEVANCE OF SYSTEMIC VIEW ............................................................................................................ 23
2.4 HOW TO ADOPT A SYSTEMIC VIEW? ..................................................................................................... 23
2.4.1 STRUCTURAL-FUNCTIONAL ANALYSIS .................................................................................................. 23
2.4.2 SERVICE DOMINANT ANALYSIS (SDL) ................................................................................................... 24
2.5 SYSTEM TRANSFORMATION .................................................................................................................. 25
2.5.1 WHY TRANSFORMING SYSTEMS?......................................................................................................... 25
2.5.2 HOW DO SYSTEMS TRANSFORM? ........................................................................................................ 25
2.5.3 SOCIO-TECHNICAL REGIME .................................................................................................................. 26
2.6 HOW TO TRANSFORM A SYSTEM? ........................................................................................................ 27
2.6.1 SYSTEMIC INSTRUMENTS (NOT LIMITED TO POLICY MAKERS, FOR EVERYONE).................................. 27
2.6.2 SYSTEMIC PROBLEMS ........................................................................................................................... 27
2.6.3 WORKAROUNDS (ALTERNATIVE PERSPECTIVE ON HOW TO CHANGE SYSTEMS) ................................ 28
2.7 TRANSITION TO CIRCULAR ECONOMY AS A CASE (HOW TO TRANSFORM?) ......................................... 29
2.7.1 SHIFT TOWARDS A CIRCULAR ECONOMY ............................................................................................. 29
2.7.2 A MATTER OF ENGAGING ACTORS ....................................................................................................... 30
2.7.3 … THROUGH ENGAGEMENT PRACTICES............................................................................................... 31
2.7.4 APPLICATION IN SECTOR (6 PRACTICES FOR CHANGING ECONOMIC SYSTEMS) ................................. 33
1
,2.7.5 APPLICATION IN REGION ...................................................................................................................... 34
3 TYPES AND PATTERNS OF INNOVATION (INDUSTRY LEVEL, M2) .................................................... 35
3.1 TYPES & PATTERNS OF INNOVATION .................................................................................................... 35
3.2 PATTERNS OF INNOVATION .................................................................................................................. 35
3.2.1 5 FACTORS THAT INFLUENCE THE INNOVATION .................................................................................. 36
3.3 PERFORMANCE IMPROVEMENT PATTERNS .......................................................................................... 38
3.4 DISCONTINUOUS TECHNOLOGIES ......................................................................................................... 39
3.5 S-CURVES IN PRACTICE .......................................................................................................................... 39
4 STANDARDS BATTLES AND DESIGN DOMINANCE .......................................................................... 41
4.1 WHAT ARE DOMINANT DESIGNS? ......................................................................................................... 41
4.2 WHY ARE DESIGNS DOMINANT? ........................................................................................................... 41
4.2.1 NETWORK EXTERNALITIES .................................................................................................................... 41
4.2.2 LEARNING EFFECTS ............................................................................................................................. 41
4.3 HOW DOMINANT DESIGNS ARE SELECTED (ANDERSON&TUSHMAN) .................................................. 42
4.3.1 RATIONAL PERSPECTIVE ....................................................................................................................... 42
4.3.2 TECHNOLOGY ACCEPTANCE MODEL .................................................................................................... 47
4.3.3 MULTI-LEVEL FRAMEWORK.................................................................................................................. 48
4.3.4 INSTITUTIONAL VIEW ........................................................................................................................... 49
4.4 WHY CARE ABOUT DOMINANT DESIGNS? WINNER-TAKE-ALL MARKETS .................................. 50
5 MODULARITY AND PLATFORM COMPETITION .............................................................................. 51
5.1 RISE OF “PLATFORM ECONOMY” .......................................................................................................... 51
5.2 MODULARITY VS. INTEGRATION ........................................................................................................... 52
5.3 PLATFORM COMPETITION ..................................................................................................................... 53
5.4 PLATFORM STRATEGIES......................................................................................................................... 53
6 TIMING OF ENTRY ......................................................................................................................... 54
6.1 IMPORTANCE OF TIMING ...................................................................................................................... 54
6.2 PROS & CONS OF MOVING FIRST .......................................................................................................... 54
6.2.1 PROS ..................................................................................................................................................... 54
6.2.2 CONS .................................................................................................................................................... 54
6.3 EARLY LEADERS & FOLLOWERS AS WINNERS ........................................................................................ 54
6.4 CRITERIA FOR TIMING OF ENTRY ........................................................................................................... 54
6.5 EXAMPLE SOCIAL MEDIA .................................................................................................................. 54
7 SPECIAL SESSION 1: NANTO – CASPER VAN HERZELE ..................................................................... 55
7.1 PAST: HISTORY OF THE FASHION INDUSTRY.......................................................................................... 55
7.2 NOW: CURRENT SITUATION .................................................................................................................. 55
7.3 FUTURE: DIGITAL PRODUCT PASPORT (DPP) ......................................................................................... 56
7.3.1 DIGITAL PRODUCT PASSPORT (SEE VIDEO, LINK ON SLIDE 27) ............................................................ 56
8 DEFINING ORGANIZ’S STRATEGIC DIRECTION (COMPANY LEVEL, M3) ........................................... 61
8.1 WHAT IS YOUR OPINION?...................................................................................................................... 61
8.2 SUSTAINING VS. DISRUPTIVE INNOVATION........................................................................................... 61
2
, 8.2.1 SUSTAINING INNOVATION ................................................................................................................... 61
8.2.2 DISRUPTIVE INNOVATION .................................................................................................................... 62
9 INNOVATION AS STRATEGIC IMPERATIVE ..................................................................................... 63
9.1 RATIONAL CHOICE PERSPECTIVE ........................................................................................................... 63
9.1.1 RESOURCE BASED VIEW ....................................................................................................................... 63
9.2 INSTITUTIONAL VIEW ON STRATEGY ..................................................................................................... 65
9.3 TYPES OF CIRCULAR BUSINESS MODELS ................................................................................................ 67
9.4 CBMs from resource-based view (NIET GEZIEN TOT EINDE HOOFDSTUK) .................................. 68
9.5 CBMs from institutional perspective ..................................................................................................... 69
9.5.1 HINDRANCES FOR NEW BUSINESS MODEL .......................................................................................... 69
9.5.2 HINDRANCES FOR CBMS WHO REMANUFACTURING AND REUSE (LINDER AND WILLIANDER) .......... 69
9.5.3 FACILITATORS FOR CBMS ..................................................................................................................... 70
10 COLLABORATION STRATEGIES ....................................................................................................... 71
10.1 THE OPEN INNOVATION PARADIGM .................................................................................................... 71
10.2 TYPES OF COLLABORATIVE ARRANGEMENTS ....................................................................................... 71
10.2.1 STRATEGIC ALLIANCES .......................................................................................................................... 71
10.2.2 JOINT VENTURES .................................................................................................................................. 71
10.2.3 LICENSING ............................................................................................................................................ 72
10.2.4 OUTSOURCING ..................................................................................................................................... 72
10.2.5 COLLECTIVE RESEARCH ORGANISATIONS............................................................................................. 72
10.3 CHOOSING AND MONITORING PARTNERS ........................................................................................... 72
10.3.1 PARTNER SELECTION ............................................................................................................................ 72
10.3.2 GOVERNANCE MECHANISMS ............................................................................................................... 73
10.3.3 METHODS TO COLLABORATE/GAIN ACCES TO USERS (SUMMARY OF SELF PASED MODULE) ............ 73
11 CHOOSING INNOVATION PROJECTS .............................................................................................. 75
11.1 THE DEVELOPMENT BUDGET ............................................................................................................... 75
11.2 METHODS FOR CHOOSING PROJECTS .................................................................................................. 75
11.2.1 QUALITATIVE-QUANTITATIVE METHODS ............................................................................................. 75
11.2.2 THREE TYPES OF SCREENING METHODS .............................................................................................. 75
12 PROTECTING INNOVATIONS .......................................................................................................... 76
12.1 APPROPRIABILITY ................................................................................................................................. 76
12.1.1 STRENGTH OF PROTECTION MECHANISMS ......................................................................................... 76
12.2 PATENTS ............................................................................................................................................... 76
12.2.1 PATENT WARS AND PATENT TROLLS .................................................................................................... 76
12.2.2 PRACTICALITIES .................................................................................................................................... 76
12.3 TRADEMARKS AND SERVICE MARKS .................................................................................................... 77
12.4 COPYRIGHT ........................................................................................................................................... 77
12.4.1 COPYRIGHT FIGHTS .............................................................................................................................. 77
12.5 TRADE SECRET .................................................................................................................................... 77
12.5.1 TRADE SECRET THEFT ........................................................................................................................... 77
12.6 PROTECTION VERSUS DIFFUSION ..................................................................................................... 78
12.6.1 PROTECTION ......................................................................................................................................... 78
12.6.2 DIFFUSION ............................................................................................................................................ 78
12.7 EFFECTIVENESS AND USE ................................................................................................................... 78
3
MANAGEMENT
UGENT
2024 - 2025 Prof. Verleye
,Inhoudsopgave
1 THE BASICS ..................................................................................................................................... 6
1.1 COURSE OBJECTIVES ................................................................................................................................ 6
1.2 What is Innovation? ................................................................................................................................ 6
1.2.1 SCHUMPETER ......................................................................................................................................... 6
1.2.2 PORTER ................................................................................................................................................... 6
1.2.3 ROGERS (PERCEPTION, SUBJECTIVE) ...................................................................................................... 6
1.2.4 DIFFERENT LEVELS OF NEWNESS ........................................................................................................... 7
1.2.5 DIFFERENT TYPES OF INNOVATION ........................................................................................................ 7
1.2.6 EXAMPLE ................................................................................................................................................ 7
1.3 WHY CARE ABOUT INNOVATION? ........................................................................................................... 8
1.3.1 FAILURE AS A RISK (von den eichen, sneider & hall) .............................................................................. 8
1.3.2 NEGATIVE EXTERNALITIES (schilling) ................................................................................................ 8
1.3.3 SUSTAINABILITY POTENTIAL .............................................................................................................. 9
1.3.4 NEED FOR INNOVATION MANAGEMENT ............................................................................................. 11
1.3.5 INSPIRATION PERSPECTIVE (1) ............................................................................................................. 11
1.3.6 HARD WORK PERSPECTIVE (2) ........................................................................................................ 13
1.3.7 ALTERNATIVE PERSPECTIVE (3) ............................................................................................................ 14
1.4 INNOVATION ......................................................................................................................................... 15
1.4.1 RANKING THE MOST INNOVATIVE COMPANIES ......................................................................... 15
1.5 IMPORTANCE OF SERVICE INNOVATION (TOT EINDE HOOFDSTUK NIET GEZIEN IN LES) ...................... 17
1.5.1 TWO PERSPECTIVES .............................................................................................................................. 17
1.6 SUSTAINABILITY AS THE NEW FRONTIER? ............................................................................................. 20
1.6.1 MAINSTREAM VS MINORITY VIEW ............................................................................................... 20
2 SYSTEMIC VIEW ON INNOVATION (SYSTEM LEVEL, M1) ................................................................ 21
2.1 EMERGENCE OF SYSTEM VIEW.............................................................................................................. 21
2.1.1 MOVING AWAY FROM TECH PUSH MODELS........................................................................................ 21
2.1.2 MOVING AWAY FROM FIRM-CENTRICITY ............................................................................................ 22
2.2 WHAT IS SYSTEMIC VIEW ON INNOVATION? ........................................................................................ 22
2.3 RELEVANCE OF SYSTEMIC VIEW ............................................................................................................ 23
2.4 HOW TO ADOPT A SYSTEMIC VIEW? ..................................................................................................... 23
2.4.1 STRUCTURAL-FUNCTIONAL ANALYSIS .................................................................................................. 23
2.4.2 SERVICE DOMINANT ANALYSIS (SDL) ................................................................................................... 24
2.5 SYSTEM TRANSFORMATION .................................................................................................................. 25
2.5.1 WHY TRANSFORMING SYSTEMS?......................................................................................................... 25
2.5.2 HOW DO SYSTEMS TRANSFORM? ........................................................................................................ 25
2.5.3 SOCIO-TECHNICAL REGIME .................................................................................................................. 26
2.6 HOW TO TRANSFORM A SYSTEM? ........................................................................................................ 27
2.6.1 SYSTEMIC INSTRUMENTS (NOT LIMITED TO POLICY MAKERS, FOR EVERYONE).................................. 27
2.6.2 SYSTEMIC PROBLEMS ........................................................................................................................... 27
2.6.3 WORKAROUNDS (ALTERNATIVE PERSPECTIVE ON HOW TO CHANGE SYSTEMS) ................................ 28
2.7 TRANSITION TO CIRCULAR ECONOMY AS A CASE (HOW TO TRANSFORM?) ......................................... 29
2.7.1 SHIFT TOWARDS A CIRCULAR ECONOMY ............................................................................................. 29
2.7.2 A MATTER OF ENGAGING ACTORS ....................................................................................................... 30
2.7.3 … THROUGH ENGAGEMENT PRACTICES............................................................................................... 31
2.7.4 APPLICATION IN SECTOR (6 PRACTICES FOR CHANGING ECONOMIC SYSTEMS) ................................. 33
1
,2.7.5 APPLICATION IN REGION ...................................................................................................................... 34
3 TYPES AND PATTERNS OF INNOVATION (INDUSTRY LEVEL, M2) .................................................... 35
3.1 TYPES & PATTERNS OF INNOVATION .................................................................................................... 35
3.2 PATTERNS OF INNOVATION .................................................................................................................. 35
3.2.1 5 FACTORS THAT INFLUENCE THE INNOVATION .................................................................................. 36
3.3 PERFORMANCE IMPROVEMENT PATTERNS .......................................................................................... 38
3.4 DISCONTINUOUS TECHNOLOGIES ......................................................................................................... 39
3.5 S-CURVES IN PRACTICE .......................................................................................................................... 39
4 STANDARDS BATTLES AND DESIGN DOMINANCE .......................................................................... 41
4.1 WHAT ARE DOMINANT DESIGNS? ......................................................................................................... 41
4.2 WHY ARE DESIGNS DOMINANT? ........................................................................................................... 41
4.2.1 NETWORK EXTERNALITIES .................................................................................................................... 41
4.2.2 LEARNING EFFECTS ............................................................................................................................. 41
4.3 HOW DOMINANT DESIGNS ARE SELECTED (ANDERSON&TUSHMAN) .................................................. 42
4.3.1 RATIONAL PERSPECTIVE ....................................................................................................................... 42
4.3.2 TECHNOLOGY ACCEPTANCE MODEL .................................................................................................... 47
4.3.3 MULTI-LEVEL FRAMEWORK.................................................................................................................. 48
4.3.4 INSTITUTIONAL VIEW ........................................................................................................................... 49
4.4 WHY CARE ABOUT DOMINANT DESIGNS? WINNER-TAKE-ALL MARKETS .................................. 50
5 MODULARITY AND PLATFORM COMPETITION .............................................................................. 51
5.1 RISE OF “PLATFORM ECONOMY” .......................................................................................................... 51
5.2 MODULARITY VS. INTEGRATION ........................................................................................................... 52
5.3 PLATFORM COMPETITION ..................................................................................................................... 53
5.4 PLATFORM STRATEGIES......................................................................................................................... 53
6 TIMING OF ENTRY ......................................................................................................................... 54
6.1 IMPORTANCE OF TIMING ...................................................................................................................... 54
6.2 PROS & CONS OF MOVING FIRST .......................................................................................................... 54
6.2.1 PROS ..................................................................................................................................................... 54
6.2.2 CONS .................................................................................................................................................... 54
6.3 EARLY LEADERS & FOLLOWERS AS WINNERS ........................................................................................ 54
6.4 CRITERIA FOR TIMING OF ENTRY ........................................................................................................... 54
6.5 EXAMPLE SOCIAL MEDIA .................................................................................................................. 54
7 SPECIAL SESSION 1: NANTO – CASPER VAN HERZELE ..................................................................... 55
7.1 PAST: HISTORY OF THE FASHION INDUSTRY.......................................................................................... 55
7.2 NOW: CURRENT SITUATION .................................................................................................................. 55
7.3 FUTURE: DIGITAL PRODUCT PASPORT (DPP) ......................................................................................... 56
7.3.1 DIGITAL PRODUCT PASSPORT (SEE VIDEO, LINK ON SLIDE 27) ............................................................ 56
8 DEFINING ORGANIZ’S STRATEGIC DIRECTION (COMPANY LEVEL, M3) ........................................... 61
8.1 WHAT IS YOUR OPINION?...................................................................................................................... 61
8.2 SUSTAINING VS. DISRUPTIVE INNOVATION........................................................................................... 61
2
, 8.2.1 SUSTAINING INNOVATION ................................................................................................................... 61
8.2.2 DISRUPTIVE INNOVATION .................................................................................................................... 62
9 INNOVATION AS STRATEGIC IMPERATIVE ..................................................................................... 63
9.1 RATIONAL CHOICE PERSPECTIVE ........................................................................................................... 63
9.1.1 RESOURCE BASED VIEW ....................................................................................................................... 63
9.2 INSTITUTIONAL VIEW ON STRATEGY ..................................................................................................... 65
9.3 TYPES OF CIRCULAR BUSINESS MODELS ................................................................................................ 67
9.4 CBMs from resource-based view (NIET GEZIEN TOT EINDE HOOFDSTUK) .................................. 68
9.5 CBMs from institutional perspective ..................................................................................................... 69
9.5.1 HINDRANCES FOR NEW BUSINESS MODEL .......................................................................................... 69
9.5.2 HINDRANCES FOR CBMS WHO REMANUFACTURING AND REUSE (LINDER AND WILLIANDER) .......... 69
9.5.3 FACILITATORS FOR CBMS ..................................................................................................................... 70
10 COLLABORATION STRATEGIES ....................................................................................................... 71
10.1 THE OPEN INNOVATION PARADIGM .................................................................................................... 71
10.2 TYPES OF COLLABORATIVE ARRANGEMENTS ....................................................................................... 71
10.2.1 STRATEGIC ALLIANCES .......................................................................................................................... 71
10.2.2 JOINT VENTURES .................................................................................................................................. 71
10.2.3 LICENSING ............................................................................................................................................ 72
10.2.4 OUTSOURCING ..................................................................................................................................... 72
10.2.5 COLLECTIVE RESEARCH ORGANISATIONS............................................................................................. 72
10.3 CHOOSING AND MONITORING PARTNERS ........................................................................................... 72
10.3.1 PARTNER SELECTION ............................................................................................................................ 72
10.3.2 GOVERNANCE MECHANISMS ............................................................................................................... 73
10.3.3 METHODS TO COLLABORATE/GAIN ACCES TO USERS (SUMMARY OF SELF PASED MODULE) ............ 73
11 CHOOSING INNOVATION PROJECTS .............................................................................................. 75
11.1 THE DEVELOPMENT BUDGET ............................................................................................................... 75
11.2 METHODS FOR CHOOSING PROJECTS .................................................................................................. 75
11.2.1 QUALITATIVE-QUANTITATIVE METHODS ............................................................................................. 75
11.2.2 THREE TYPES OF SCREENING METHODS .............................................................................................. 75
12 PROTECTING INNOVATIONS .......................................................................................................... 76
12.1 APPROPRIABILITY ................................................................................................................................. 76
12.1.1 STRENGTH OF PROTECTION MECHANISMS ......................................................................................... 76
12.2 PATENTS ............................................................................................................................................... 76
12.2.1 PATENT WARS AND PATENT TROLLS .................................................................................................... 76
12.2.2 PRACTICALITIES .................................................................................................................................... 76
12.3 TRADEMARKS AND SERVICE MARKS .................................................................................................... 77
12.4 COPYRIGHT ........................................................................................................................................... 77
12.4.1 COPYRIGHT FIGHTS .............................................................................................................................. 77
12.5 TRADE SECRET .................................................................................................................................... 77
12.5.1 TRADE SECRET THEFT ........................................................................................................................... 77
12.6 PROTECTION VERSUS DIFFUSION ..................................................................................................... 78
12.6.1 PROTECTION ......................................................................................................................................... 78
12.6.2 DIFFUSION ............................................................................................................................................ 78
12.7 EFFECTIVENESS AND USE ................................................................................................................... 78
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