ABSTRACT
In accordance with the Rationalist Teleological framework of thought to be found in both neoclassical and evolutionary economics, innovation is seen as a prime strategic goal of organizations to be realized through particular organizational functions. For example, the influential writings of Drucker (1985) suggest that innovation is the function of entrepreneurship, and that this function is an essential characteristic for survival, not only of small or new businesses, but also of large, already existing organizations. For Drucker, the conduct of innovative activities and the creation of new products is the result of a conscious and purposeful search. He ascribes successful innovation to the systematic search for opportunities and latent consumer needs. The routinization of the activity of innovation is taken even further by writers such as Crawford (1991) and Souder (1987). They also argue that innovation is essential for survival in a fast changing environment and that this requires organizations to establish distinct departments to take responsibility for the coordination and execution of the tasks required to renew a company’s products. For these authors the development of new products seems to be mainly that of managing product life cycles through monitoring the market, assessing consumer responses to existing products, and replacing losers with new improved products that will fit market demand. Innovation is subservient to company goals and strategic aims, which guide the search for new opportunities.
