Organizing product innovation: hierarchy, market or triple-helix networks?
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Summary
This summary is machine-generated.Firms benefit more from product innovations when using internal hierarchies or broad triple-helix networks. International collaboration, especially with suppliers, customers, and R&D institutions, significantly boosts innovation income.
Area Of Science
- Innovation Management
- Economic Geography
- Organizational Studies
Background
- Understanding how firms organize innovation is crucial for maximizing product innovation benefits.
- The geographical scope of innovation efforts can influence a firm's innovative capacity.
- Existing research often overlooks the interplay between organizational structure and geographical scale in innovation.
Purpose Of The Study
- To assess how innovation organization (hierarchy, market, triple-helix networks) impacts product innovation benefits.
- To examine the effect of geographical scale (local, national, international) of triple-helix networks on innovation outcomes.
- To determine the optimal organizational and geographical strategies for firms to capitalize on product innovations.
Main Methods
- Analysis of a random sample of 763 Norwegian firms that introduced new products/services.
- Comparison of income derived from new products based on different organizational modes (hierarchy, market, networks).
- Evaluation of the impact of triple-helix network scale (local, national, international) and partner types on innovation success.
Main Results
- Firms using internal hierarchies or extensive triple-helix networks achieved a higher share of income from new products.
- Market-based outsourcing strategies were less effective in generating innovation income compared to networks.
- International triple-helix networks, including suppliers, customers, and R&D institutions, significantly enhanced income from product innovations.
Conclusions
- Internal hierarchies and broad triple-helix networks are superior organizational modes for deriving benefits from product innovation.
- The geographical scale and partner composition of triple-helix networks are critical factors for successful product innovation.
- International collaboration within triple-helix networks offers a significant advantage for firms seeking to maximize returns from innovation.