ABSTRACT
Innovation as a process involves a pathway from idea to commercialisation and market launch. It is a non-linear process, and is a mixture of muddling through and planning, combined with flexibility on the part of the entrepreneurs. There are high rates of failure at different stages of the innovation pathway in what is often characterised as an easy to enter but relatively easy to exit sector. There are four main stages in the journey. In the first stage, there is ideation, the moment of creation that may give rise to innovation. These are assessed, especially in terms of potential markets, and most ideas are rejected when exposed to close evaluation. Eventually, after an idea passes scrutiny, the journey moves onto the second stage coalition building – the assembling of the resources and individuals that are essential for implementation. In the third stage, the idea is transformed into prototypes or small production runs that are tested in the market, and when the extent of consumer acceptance of resistance can more accurately be gauged. In the final stage, the product is brought to the market or is disseminated. Only at that point does the idea encounter the full and often harsh commercial realities of the innovation process. Surprisingly little is known about the many resulting failure, including the persistence and phoenix-like renewals of both ideas and of entrepreneurs: the same or similar ideas may become the future starting points of subsequent innovation journeys, informed by the experiences and learning accrued from the initial journey. Although the innovation literature focusses particularly on start-ups, innovation is characteristic of many stages of the subsequent growth and eventual maturity of the firm. However, in larger enterprises in particular, the entrepreneurial function may be taken on by intrapreneurs – insiders (employees) within the organization. They tend to have different characteristics to entrepreneurs because while being important initiators of the innovation process, they do in a lower risk but also lower reward setting. The challenge for companies is to find effective ways to keep such intrapreneurs engaged and satisfied with their total material and non-material return from such innovation.
