TY - BOOK
T1 - Developing strategic innovation capability of enterprises
T2 - Theoretical and methodological outlines of intervention
AU - Koivisto, Tapio
N1 - Project code: G4SU01023
PY - 2005
Y1 - 2005
N2 - The research focuses on the question of the theoretical
and methodological basis on which it is possible and
sensible to approach and analyse the potentials and
limitations of innovation and the development of the
innovation capability - in the specific context of
communities of practice and situated action and
decision-making. What kind of basic theoretical
assumptions, basic concepts and methodological solutions
are possible and sensible as a starting point in
analysing the potentials and limitations of innovation
and the development of innovation capability in the
specific context of practical activities and
decision-making?
There is no ready-made, self-evident, integrating,
systemic approach or theory to serve and direct the
development of the innovation capability of enterprises.
For this very reason, it was necessary to set, define and
construct the subject, problem and context of research
rather from the point of view of practice and cooperative
inquiry - critically assessing, utilising and applying
existing innovation research and the theory and strategic
management concepts of the enterprise.
Innovation activities and development of the innovation
capability of enterprises are not necessarily a priori a
self-evident and inherently valuable goal. Underlying
this notion is the finding that the consequences of an
innovation activity and innovation may also be harmful or
destructive. The development of the innovation capability
of an enterprise - and innovation activity as a rule - is
a contradictory, paradoxical and hence a discursive
process. Schumpeter once discerned the paradox of
innovation. He called the double dynamics of innovation
as a process of "creative destruction". Innovation means
creation of new combinations of methods and machines and
at the same time radical devaluation of produced values.
What, at any point of time, a social practice is depends
on how human agents interpret it to be. And different
interpretations constitute different realities. In other
words, actors in enterprises and the management itself
may have their own theories of the reform and innovation
of products, services and processes. Representatives of
enterprises also have their own views on the innovation
capability of the enterprise, as well as the needs and
challenges for its development - including the idea that
no such development needs actually exist. The views of
the active actors play a central and fundamental role as
regards practical activities and decision-making.
Practical decision-making and activity are linked to a
wider network and context consisting of many specialised
actors and decision-makers. Practitioners and
decision-makers are connected to a world, enterprise
population and context of a certain sector that are
distributed and multicentered in terms of the division of
labour. Organisation is not a strategically isolated
entity. It is one element in a broader population of
organisations, each of which is using the others as a
reference point for their own strategising and sense
making activities.
The development of the innovation capability of an
enterprise refers here to collaborative joint efforts and
"productive inquiry and development" (Dewey) of the
firm's innovation capability between researchers and the
firm's representatives. Research and development work
builds on the reflexive intervention methodology and
heuristic principles. This leads us to the question of
how the development of a firm's innovation capability can
be perceived so that it makes sense. This, again,
requires specific insight into "innovation capability",
the "enterprise" as well as the mechanisms affecting the
innovation capability of enterprises.
The key conclusion of the publication is that the
self-referential, autopoietic and paradoxical nature of
organisations, enterprises and practical operations in
general must be taken seriously in research and
development. The solutions proposed by Jan-Peter Vos are
on that remarkably promising. The solutions and models
developed by Jan-Peter Vos also offer an applicable and
viable basis for the development of the strategic
innovation capability of enterprises.
AB - The research focuses on the question of the theoretical
and methodological basis on which it is possible and
sensible to approach and analyse the potentials and
limitations of innovation and the development of the
innovation capability - in the specific context of
communities of practice and situated action and
decision-making. What kind of basic theoretical
assumptions, basic concepts and methodological solutions
are possible and sensible as a starting point in
analysing the potentials and limitations of innovation
and the development of innovation capability in the
specific context of practical activities and
decision-making?
There is no ready-made, self-evident, integrating,
systemic approach or theory to serve and direct the
development of the innovation capability of enterprises.
For this very reason, it was necessary to set, define and
construct the subject, problem and context of research
rather from the point of view of practice and cooperative
inquiry - critically assessing, utilising and applying
existing innovation research and the theory and strategic
management concepts of the enterprise.
Innovation activities and development of the innovation
capability of enterprises are not necessarily a priori a
self-evident and inherently valuable goal. Underlying
this notion is the finding that the consequences of an
innovation activity and innovation may also be harmful or
destructive. The development of the innovation capability
of an enterprise - and innovation activity as a rule - is
a contradictory, paradoxical and hence a discursive
process. Schumpeter once discerned the paradox of
innovation. He called the double dynamics of innovation
as a process of "creative destruction". Innovation means
creation of new combinations of methods and machines and
at the same time radical devaluation of produced values.
What, at any point of time, a social practice is depends
on how human agents interpret it to be. And different
interpretations constitute different realities. In other
words, actors in enterprises and the management itself
may have their own theories of the reform and innovation
of products, services and processes. Representatives of
enterprises also have their own views on the innovation
capability of the enterprise, as well as the needs and
challenges for its development - including the idea that
no such development needs actually exist. The views of
the active actors play a central and fundamental role as
regards practical activities and decision-making.
Practical decision-making and activity are linked to a
wider network and context consisting of many specialised
actors and decision-makers. Practitioners and
decision-makers are connected to a world, enterprise
population and context of a certain sector that are
distributed and multicentered in terms of the division of
labour. Organisation is not a strategically isolated
entity. It is one element in a broader population of
organisations, each of which is using the others as a
reference point for their own strategising and sense
making activities.
The development of the innovation capability of an
enterprise refers here to collaborative joint efforts and
"productive inquiry and development" (Dewey) of the
firm's innovation capability between researchers and the
firm's representatives. Research and development work
builds on the reflexive intervention methodology and
heuristic principles. This leads us to the question of
how the development of a firm's innovation capability can
be perceived so that it makes sense. This, again,
requires specific insight into "innovation capability",
the "enterprise" as well as the mechanisms affecting the
innovation capability of enterprises.
The key conclusion of the publication is that the
self-referential, autopoietic and paradoxical nature of
organisations, enterprises and practical operations in
general must be taken seriously in research and
development. The solutions proposed by Jan-Peter Vos are
on that remarkably promising. The solutions and models
developed by Jan-Peter Vos also offer an applicable and
viable basis for the development of the strategic
innovation capability of enterprises.
KW - companies
KW - research and development
KW - innovation
KW - strategic innovations
KW - small and medium-sized enterprices
KW - SMEs
KW - industry
KW - institutions
KW - innovation policy
KW - globalization
M3 - Report
SN - 951-38-6683-1
T3 - VTT Publications
BT - Developing strategic innovation capability of enterprises
PB - VTT Technical Research Centre of Finland
CY - Espoo
ER -