Abstract
Setting out from the concept of “creative destruction” proposed by Schumpeter (1942), firms that are not innovative are replaced by those that are. An innovative firm is one that takes advantage of opportunities available in the surrounding environment, mobilizing both physical infrastructure and forms of demand-pull through new business which is intensive in incorporating knowledge, created by existing firms. To take advantage of those opportunities, both new and established firms must make additional investment in innovation in order to create new sources of spillovers.
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Notes
- 1.
According to Kline and Rosenberg (1986), innovation is not gradual, linear or even well behaved. For these authors, bi-directional flows occur. On one hand, the supply of innovation promotes the development of science, and on the other, the demand for innovation forces the creation of science. It is of note that on various occasions, technical progress does not derive from science but rather from certain needs identified in the market.
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Leitão, J. (2019). Theoretical Framework and Proposed Model. In: Open Innovation Business Modeling. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-91282-0_1
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