The staged competition innovation theory

Innovation is critical to technological progress and has many theories to explain its processes. Organised competition has been shown empirically to provide an alternative pathway for innovation within an industry, increasing innovation rates and radicalness. This research introduces and develops the new staged competition innovation theory which builds on the well-understood diffusion of innovation theory and the Technology-Organisation-Environment framework to explain how decision-making and technological, organisational, and environmental characteristics of industry-based competition can drive innovation activity. The new theory comprises three principles that demonstrate how a well-designed staged competition provides: (1) a unique innovation mechanism away from parent industry constraints, (2) a unique agile environment that can increase innovation development, and (3) a return pathway for adoption back to the parent industry. Principle 2 addresses the specific competition environment criteria required to drive innovation, beginning with a co-dependency between organiser and teams in providing team confidence and a mutually beneficial outcome for both parties. Relative advantage drives teams to innovate by generating competitive pressure, while a variable solution space due to competition specific rules and competition brief clarity direct innovation efforts. Finally, competition repetition provides ongoing innovation transfer between teams within the competition and to the parent industry.