Firm-Level Innovation Models : Perspectives on Research in Developed and Developing Countries

The advantage of firm-level innovation modelsused in industrially-advanced countries (IACs) is that they havedelvedsubstantially into the management of innovation and decision-makingprocesses within a firm.This analysis categorizes five generations ofsuch firm-level innovation models, highlighting their strengths and weaknesses.It then explores the relevance of applying IAC innovation models to 'latecomer'firms from developing countries, which have radically different innovativeprocesses. Because firms from developing nations have anincreasinglycompetitive presence in international business, this issue is especiallyrelevant. Many of the models investigated imply that there is one 'best practice'innovation model to follow, though evidence shows that innovation not onlydepends on firm culture and context, but on leadership, ingenuity, and vision.Hence, models must be tailored by managers to particular contexts to develop adistinctive innovative strategy. As latecomer firms gain eminence, futureinnovation research should fill a gap by focusing on developing catch up and"forge ahead" models. Suggestions are provided regarding strategiesforcarrying out such research in advanced industrializing countries, suchas Korea. (LKB)