When the Going Gets Tough: Failure of Innovative Businesses
Innovation is widely believed to play a key role for the survival and competitiveness of firms. The significance of innovation has been stressed increasingly among academics in recent decades, and policy-makers and practitioners have rather pervasively adopted the view. Nowadays, continuous renewal by firms is considered as an essential organizational process in coping with technological progress (Teece et al., 1997) and the positive effect of innovation as a cornerstone of renewal seems almost unquestionably accepted. Firms can pursue product innovations to go into new industries or markets, or introduce new technologies or product features in their existing domains to extract greater rents or obtain an advantage vis-à-vis their competitors (Burgelman and Sayles, 1986). Greve and Taylor (2000) mention innovation as a ‘competitive weapon’ to get new resources and competences when radically new product introductions undermine the incumbent technological regime.
KeywordsInnovation Process Product Innovation Young Firm Business Register Successful Innovation
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