Innovation and Entrepreneurship

The text applies key theories and research on innovation and entrepreneurship and then reviews and synthesises those theories and research to apply them in a much broader and contemporary context, including the corporate and public services, emerging technologies and economies, and sustainability and development and creating and capturing value from innovation and entrepreneurship. In this third edition the authors continue to adopt an explicit process model to help organise the material with clear links between innovation and entrepreneurship.

This text has been designed to be fully integrated with the Innovation Portal at www.innovation-portal.info, which contains an extensive collection of additional resources for both lecturers and students, including teaching resources, case studies, media clips, innovation tools, seminar and assessment activities and test questions.

John Bessant holds the Chair in Innovation and Entrepreneurship at Exeter University and is Visiting Professor at HHL Business School, Leipzig.

Joe Tidd is Professor of Technology and Innovation Management at SPRU (Science and Technology Policy Research), University of Sussex and Visiting Professor at University College London.

Preface xiii

Acknowledgements xvi

How to Use This Book xvii

Part I Entrepreneurial Goals and Context 1

Chapter 1 The Innovation Imperative 3

Innovation Matters 3

Innovation and Entrepreneurship 11

Innovation Isn’t Easy! 13

Managing Innovation and Entrepreneurship 15

Dimensions of Innovation: What Can We Change? 16

A Process Model for Innovation and Entrepreneurship 21

How Can We Make Change Happen? 25

What, Why and When: The Challenge of Innovation Strategy 27

Chapter Summary 37

Key Terms Defined 39

Discussion Questions 39

Further Reading and Resources 41

References 42

Chapter 2 Social Innovation 45

What Is ‘Social Innovation’? 46

Different Players 49

Motivation: Why Do It? 53

Enabling Social Innovation 58

The Challenges of Social Entrepreneurship 61

Chapter Summary 63

Key Terms Defined 63

Discussion Questions 64

Further Reading and Resources 64

References 65

Chapter 3 Innovation, Globalization and Development 67

Globalization of Innovation 67

National Systems of Innovation 73

Building Capabilities and Creating Value 84

Building BRICs: The Rise of New Players on the Innovation Stage 85

Innovation for Development 91

Chapter Summary 95

Key Terms Defined 95

Discussion Questions 96

Further Reading and Resources 96

References 97

Chapter 4 Sustainability-led Innovation 99

The Challenge of Sustainability-led Innovation 99

We’ve Seen This Before 101

Sustainability-led Innovation 101

A Framework Model for Sustainability-led Innovation 103

Managing the Innovation Process for Sustainability 111

Responsible Innovation 115

Chapter Summary 116

Key Terms Defined 116

Discussion Questions 117

Further Reading and Resources 117

References 118

Part II Recognizing the Opportunity 121

Chapter 5 Entrepreneurial Creativity 123

Introduction 123

What Is Creativity? 124

Creativity as a Process 129

(Why, When and Where) Does Creativity Matter? 131

Who Is Creative? 132

How to Enable Creativity 134

Putting It All Together: Developing Entrepreneurial Creativity 156

Chapter Summary 157

Key Terms Defined 157

Discussion Questions 158

Further Reading and Resources 159

References 159

Chapter 6 Sources of Innovation 163

Introduction 163

Knowledge Push 164

Need Pull... 166

Making Processes Better 169

Whose Needs? Working at the Edge 171

Emerging New Markets at ‘the Base of the Pyramid’ 173

Crisis-driven Innovation 176

Towards Mass Customization 177

Users as Innovators 180

Watching Others – and Learning from Them 187

Recombinant Innovation 188

Regulation 189

Futures and Forecasting 190

Design-driven Innovation 190

Accidents 192

Chapter Summary 194

Key Terms Defined 194

Discussion Questions 195

Further Reading and Resources 195

References 196

Chapter 7 Search Strategies for Innovation 199

Making Sense of the Sources 199

What? 200

When? 204

Where? The Innovation Treasure Hunt 205

How? 208

Who? 215

Open Innovation 217

Learning to Search 223

Chapter Summary 225

Key Terms Defined 225

Discussion Questions 227

Further Reading and Resources 227

References 228

Part III Finding the Resources 231

Chapter 8 Building the Case 233

Developing the Business Plan 233

Forecasting Innovation 239

Assessing Risk and Recognizing Uncertainty 246

Anticipating the Resources 251

Chapter Summary 256

Key Terms Defined 256

Discussion Questions 257

Further Reading and Resources 257

References 258

Chapter 9 Leadership and Teams 261

Individual Characteristics 262

Entrepreneurial Teams 271

Context and Climate 278

Chapter Summary 283

Key Terms Defined 283

Discussion Questions 284

Further Reading and Resources 284

References 285

Chapter 10 Exploiting Networks 289

No Man Is an Island… 289

The Spaghetti Model of Innovation 291

Types of Innovation Networks 292

Networks as Purposeful Constructions 309

Chapter Summary 314

Key Terms Defined 315

Discussion Questions 315

Further Reading and Resources 316

References 317

Part IV Developing the Venture 321

Chapter 11 Developing New Products and Services 323

The New Product/Service Development Process 323

Success Factors 328

Service Development 330

Tools to Support New Product Development 334

Chapter Summary 351

Key Terms Defi ned 351

Discussion Questions 352

Further Reading and Resources 352

References 353

Chapter 12 Creating New Ventures 357

Types of New Venture 357

Context for Entrepreneurship 361

Process and Stages for Creating a New Venture 371

Assessing the Opportunity 371

Developing the Business Plan 373

Acquiring the Resources and Funding 375

Crowdfunding 383

Chapter Summary 384

Key Terms Defined 384

Discussion Questions 385

Further Reading and Resources 385

References 386

Chapter 13 Developing Businesses and Talent through Corporate Venturing 389

Internal Venturing and Entrepreneurship 389

Why Do It? 391

Managing Corporate Ventures 398

Strategic Impact of Ventures 405

Chapter Summary 408

Key Terms Defined 408

Discussion Questions 408

Further Reading and Resources 409

References 409

Chapter 14 Growing the Enterprise 413

Factors Influencing Success 413

Funding 420

Growth and Performance of New Ventures 424

Chapter Summary 432

Key Terms Defined 432

Discussion Questions 432

Further Reading and Resources 433

References 434

Part V Creating Value 439

Chapter 15 Exploiting Knowledge and Intellectual Property 441

Innovation and Knowledge 441

Generating and Acquiring Knowledge 442

Identifying and Codifying Knowledge 443

Storing and Retrieving Knowledge 445

Sharing and Distributing Knowledge 446

Exploiting Intellectual Property 450

Chapter Summary 459

Key Terms Defined 459

Discussion Questions 460

Further Reading and Resources 460

References 461

Chapter 16 Business Models and Capturing Value 463

What’s a Business Model? 463

Why Use Business Models? 464

What’s in a Business Model? 466

Business Model Innovation 468

Generic and Specific Business Models 472

Building a Business Model 474

Chapter Summary 479

Key Terms Defined 479

Discussion Questions 479

Further Reading and Resources 480

References 481

Chapter 17 Learning to Manage Innovation and Entrepreneurship 483

Introduction 483

Making Innovation Happen 484

Learning and Building Capability 485

How Learning Happens 487

Recognizing the Opportunity 489

Finding the Resources 491

Developing the Venture 493

Innovation Strategy: Having a Clear Sense of Direction 496

Building an Innovative Organization 499

Networking for Innovation 501

Learning to Manage Innovation 504

Getting Fit for Innovation 505

Managing Innovation and Entrepreneurship 508

Chapter Summary 509

Key Terms Defined 509

Discussion Questions 510

Further Reading and Resources 510

References 511

Index 513

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