Innovation strategies can be classed as proactive, active, reactive and passive (Dodgson et al.2008).
Proactive
Companies with proactive innovation strategies tend to have strong research orientation and first-mover advantage, and be a technology market leader. They access knowledge from a broad range of sources and take big bets/high risks. Examples include: Dupont, Apple and Singapore Airlines.
The types of technological innovation used in a proactive innovation strategy are:
radical – breakthroughs that change the nature of products and services
incremental – the constant technological or process changes that lead to improved performance of products and services.
Active
Active innovation strategies involve defending existing technologies and markets while being prepared to respond quickly once markets and technologies are proven. Companies using this approach also have broad sources of knowledge and medium-to-low risk exposure; they tend to hedge their bets. Examples include Microsoft, Dell and British Airways.
These companies use mainly incremental innovation with in-house applied research and development.
Reactive
The reactive innovation strategy is used by companies:
They copy proven innovation and use entirely incremental innovators. An example is Ryanair, a budget airline which has successfully copied the no-frills service model of Southwest Airlines.
Passive
Companies with passive innovation strategies wait until their customers demand a change in their products or services. Examples include automotive supply companies as they wait for their customers to demand changes to specification before implementing these.
References
Dodgson, Mark, Gann, David and Salter, Ammon.2008. The Management of Technological Innovation: Strategy and Practice. Completely rev. and updated. Oxford: Oxford University Press.
As an innovation enthusiast with a deep understanding of the topic, I've explored various facets of innovation strategies and their implications on organizational success. My expertise extends to the differentiation between proactive, active, reactive, and passive innovation strategies, drawing from reputable sources such as Dodgson, Gann, and Salter's seminal work in 2008.
The classification of innovation strategies outlined by Dodgson et al. provides a comprehensive framework for understanding how organizations approach innovation. Let's delve into each strategy and its associated concepts:
Research Orientation: Companies employing proactive strategies exhibit a strong focus on research.
First-Mover Advantage: They aim to be pioneers in their industry, gaining a competitive edge.
Technology Market Leadership: Proactive innovators aspire to lead in technological advancements.
Knowledge Access:
Broad Range of Sources: Proactive companies access knowledge from diverse channels.
Risk Profile:
Big Bets/High Risks: These organizations are willing to take significant risks.
Examples:
Dupont: Demonstrates a proactive stance in innovation.
Apple: Known for groundbreaking products and technological advancements.
Singapore Airlines: Exhibits a proactive approach in the aviation industry.
Technological Innovation Types:
Radical Innovation: Breakthroughs that fundamentally change products and services.
Incremental Innovation: Constant technological or process changes leading to improved performance.
Active Innovation Strategy:
Characteristics:
Defensive Stance: Companies with active strategies defend existing technologies and markets.
Quick Response: Preparedness to respond swiftly to proven markets and technologies.
Knowledge Access:
Broad Sources: Like proactive innovators, they tap into a wide array of knowledge channels.
Medium-to-Low Risk Exposure: These organizations hedge their bets, balancing risk and stability.
Innovation Type:
Mainly Incremental: Active innovators focus on incremental innovations.
In-House R&D: They prioritize in-house applied research and development.
Examples:
Microsoft: Known for defending its technology and adapting to market changes.
Dell: Demonstrates a proactive approach to market demands.
British Airways: Balances defense of existing markets with readiness for change.
Reactive Innovation Strategy:
Characteristics:
Followers: Companies using reactive strategies are followers rather than pioneers.
Operations Focus: They prioritize operational efficiency.
Wait-and-See Approach: Observing and reacting to proven innovations.
Innovation Type:
Copycat Strategy: These organizations copy proven innovations.
Entirely Incremental: Focuses on incremental innovations.
Examples:
Ryanair: Successfully adopted the no-frills service model of Southwest Airlines.
Passive Innovation Strategy:
Characteristics:
Customer-Driven: Companies with passive strategies wait for customer demand before innovating.
Examples:
Automotive Supply Companies: Often wait for customer demands before implementing changes.
Conclusion:
Understanding these innovation strategies is crucial for organizations seeking to navigate the dynamic landscape of technological advancements. Whether choosing a proactive, active, reactive, or passive approach, aligning innovation strategies with organizational goals is key to sustained success. The insights provided by Dodgson et al. serve as a valuable guide in formulating effective innovation strategies.
A Place to Innovate (PDF 4.6MB) is Queensland's ten-year strategy to release the potential from the state's innovation precincts and places – where knowledge, investment and talent come together to achieve great things.
Five critical elements lie at the core of any successful innovation strategy: Innovation Culture, Leadership Buy-In, Enable Team Members, Reward and Recognize, and Defined Metrics and KPIs.
Policy responses to obesity in Queensland schools may include developing engagement strategies by increasing communication between stakeholders and policy-makers to achieve the goals of: (1) developing a nutrition and physical education program to improve children's self-efficacy, knowledge, awareness, outcome ...
The Queensland Digital Economy Strategy and Action Plan has a number of key objectives, among them encouraging greater use of digital technologies to create business opportunities that promote economic growth, and revitalising the Queensland public service so it is the best in Australia, delivering quality services to ...
There are various ways a company can innovate and it's often applied to three general categories: product, process and business model innovation. Businesses should consider implementing these categories in their business strategy.
So: People, Philosophy and Process are the three necessary Ps for enabling innovation in an organization. Learn about INSEAD's 'Leading Digital Transformation and Innovation' program here.
The three critical innovation strategies for changing products and technologies are exploration, cooperation, and entrepreneurship. An exploration strategy involves creating a conducive environment that encourages creativity and new ideas.
An innovation strategy is a plan used by a company to encourage advancements in technology or services, usually by investing money in research and development activities. An innovation strategy is essential for companies that want to gain competitive advantage.
Apple, Google, Amazon, Microsoft, Zoom—all of these corporate superstars are excellent examples of strategic innovation in action. We've witnessed these companies bring about some of the most exciting transformations in the world as we know it today.
Product innovation is probably the most common form of innovation and it refers to improvements in performance characteristics and attributes of the product.
The 2022–2032 Strategy aims to maximise existing strengths and develop new capabilities to help Queensland businesses to adapt, thrive and grow by:Promote Queensland. Boost exports. Grow investment and jobs.
An innovative strategy guides decisions on how resources are to be used to meet a business's objectives for innovation, deliver value and build competitive advantage. Strategies should include: an analysis of a business's competitive and technological environment. its external challenges and opportunities.
Queensland's climate is changing and requires us to build resilience and secure a sustainable future for our communities, environment and economy. We have set targets to reduce emissions and increase renewable energy use. Emissions reduction: 30% below 2005 levels by 2030.
The Queensland Pacific Trade Strategy is backed by $4.38 million commitment from the Queensland Government. Through the universal language of sport, Pacific nations have built strong ties with Queensland, which has been home to training camps and friendly games for local teams.
Introduction: My name is Edwin Metz, I am a fair, energetic, helpful, brave, outstanding, nice, helpful person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
