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Wearing failure as a path to innovation.

João J M Ferreira1, Cristina I Fernandes1,2, Fernando A F Ferreira3,4

  • 1Department of Business and Economics, NECE Research Unit, University of Beira Interior, Estrada do Sineiro, 6200-209 Covilhã, Portugal.

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Summary

Innovation failure negatively impacts companies

Keywords:
Community Innovation Survey (CIS)Company knowledgeInnovationInnovation failure

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Area of Science:

  • Business Management
  • Innovation Studies
  • Corporate Strategy

Background:

  • Corporate performance management heavily relies on innovation.
  • Existing research often overlooks innovation failure's role in new initiatives.
  • Focusing on failure provides insights into innovation dynamics.

Purpose of the Study:

  • To analyze the impacts of innovative project failure.
  • To investigate the relationship between innovation failure and external knowledge acquisition.
  • To understand how experience influences knowledge assimilation after failure.

Main Methods:

  • Utilized 2014 Community Innovation Survey data.
  • Applied econometric models for analysis.
  • Examined a sample of companies to assess innovation failure impacts.

Main Results:

  • Innovation failure shows a negative correlation with companies' experience.
  • Innovation failure is negatively associated with the acquisition of external knowledge.
  • Accumulated company experience positively influences knowledge flow assimilation.

Conclusions:

  • Innovation failure hinders knowledge acquisition and experience building.
  • Companies' prior experience is crucial for integrating new knowledge effectively.
  • Understanding innovation failure is key to improving corporate innovation strategies.