Investigating Innovation: Studies, Systems and Solutions

Innovation is known to be vital for the competitive advantage of firms (Tidd, Bessant & Pavitt, 2001) and for the economic prosperity of nations (OECD 1999, 2000, 2001, Conference Board of Canada, 2003). Indeed, much of the literature on innovative firms and the management of innovation in firms reflects long standing interest and research into technological innovation and the manufacturing and resource sector. However, with the growth of the knowledge based economy and the noted importance of the service sector in generating wealth and employment, the nature of innovation in services is being revisited for new insights into innovation processes (Gallouj, 2002; Boden & Miles, 2000; Howells, 2003, Tether, 2002, 2003). The aim of this paper is to identify factors that contribute to understanding the management of innovation in firms. This paper reviews some of the major work on innovations in services and the bundling of products and services to form solutions. It reviews studies of innovation with an emphasis on innovation in services and finds that case studies of innovations in problem focused situations lead to new understandings of innovation as a systemic process with a focus on solutions.