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Systemic Innovation

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Abstract

Systemic innovation involves coordinated development among a group of elements composing a unified system. It is the opposite of a modular system, which is based on autonomous innovations. Systemic innovation is most likely when industries are not yet on the path of a dominant design, when products are complex (e.g., an aeroplane), and when companies believe they can gain competitive advantage over rivals by creating an integral (non-modular) product design. Success with a systemic design requires, at a minimum, that design and production are centralized or tightly coordinated.

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Author information

Authors and Affiliations

  1. Berkeley Research Group, LLC, 2200 Powell Street, Suite 1200, Emeryville, CA, 94608, USA

    David J. Teece

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  1. David J. Teece
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Correspondence to David J. Teece .

Editor information

Editors and Affiliations

  1. Stanford University , Stanford, California, USA

    Mie Augier

  2. Tusher Ctr Intellectual Capital, University of California Tusher Ctr Intellectual Capital, Berkeley, California, USA

    David J. Teece

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© 2016 The Author(s)

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Teece, D.J. (2016). Systemic Innovation. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_376-1

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  • DOI: https://doi.org/10.1057/978-1-349-94848-2_376-1

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  • Publisher Name: Palgrave Macmillan, London

  • Online ISBN: 978-1-349-94848-2

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