| #bw050 WELKOM 2 Juni 2015 | BusinessWise Q2

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| ‘Innovatiekracht van het Noord Nederlandse MKB’ Prof. dr. D. Faems 2 Juni 2015

|5 Innovatiekracht van Noord- Nederlandse MKB Prof. Dr. Dries Faems Full Professor Innovation & Organization University of Groningen

| Structuur presentatie ›1) Inleiding tot belangrijkste innovatieconcepten, innovatie uitdagingen, en innovatie oplossingen ›2) Overzicht belangrijkste resultaten onderzoek naar Innovatiekracht Noord-Nederlandse MKB ›3) Vragen en opmerkingen 6

| Definition of innovation ‘Innovation is the transformation of ideas into products/services that can be launched onto the market’

Difference between Research and Innovation Tony Fadell Father of the iPod One of the Top 50 Disruptors (CNBC) Philips ( ) My frustration at Philips was that 95% of the projects were stopped. Every time you thought you were on the right track, the project died… At Philips, we experimented, we tried and then we stopped Apple ( ) At Apple, I saw 99,9% of the projects go to the market. If it did not work or it was nog good enough, you continued working until it worked out. There was a complete focus on brining products to the market

Difference between Research and Innovation PARC Research Center Extremely successful in developing new technologies, but completely failed to generate innovation IDEO Extremely successful in developing new products without heavy investments in research

Difference between Research and Innovation European Framework Programs HORIZON2020 Program Bridging the Valley of Death

| Different kinds of innovations ›Type of innovation  Product innovation: Changes in the things (products/services) which an organization offers  Process innovation: Changes in the ways in which they are created and delivered ›Novelty of innovation  Incremental innovation: Doing what we do better  Radical innovation: New to the world

|12 Exploitative Innovation Explorative Innovation

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| Challenges in Organizing Explorative and Exploitative Innovation at the Individual level Exploitative innovation: Analytic cognitive style 16 Explorative innovation: Intuitive cognitive style

|17 Exploitative innovation: Structured process model Explorative innovation: Flexible process model Challenges in Organizing Explorative and Exploitative Innovation at the Process level

| Exploitative innovation: Mechanistic structure -Centralized structure with multiple hierarchical levels -Formal coordination by means of vertical communication -Focus on control Explorative innovation: Organic structure -Decentralized structure with limited number of hierarchical levels -Informal coordination by means of lateral communication -Focus on autonomy 18 Challenges in Organizing Explorative and Exploitative Innovation at the Organizational level

| Challenges in organizing explorative and exploitative innovation 19 Exploitative Innovation Explorative Innovation Individual levelAnalytic cognitive style Intuitive cognitive style Project levelSequential process models Functional project structure Iterative process models Cross-functional project structure Organizational level Mechanistic structure Organic structure

| Structural separation of exploitative and explorative activities within the firm Exploitation Exploration Organizing for innovation: Intra-firm solutions Structure: Ambidextrous organization, internal venturing department, explorative heavyweight team Advantage: Each separate unit can be optimally staffed, managed and structured Challenges: Expensive and limited ability to realize synergies across different units (Jansen et al., 2009; Van Looy et al., 2005)

| ›Spreading costs and risks of innovative activities across different partners ›Ability for synergistic knowledge recombination across different partners ›Clear separation of explorative activities from exploitative activities 21 ExploitationExploration Organizing for innovation: Inter-firm solutions

| Challenges of open innovation 22 Faems, D.; Van Looy, B. & Debackere K. (2005) The role of inter-organizational collaboration within innovation strategies: towards a portfolio approach. Journal of Product Innovation Management, 22: ›Need to collaborate with specific types of partners to stimulate explorative and exploitative innovation Focal Firm’s Explorative Innovation Performance Customer University Supplier Research Institute Focal Firm’s Exploitative Innovation Performance Customer University Supplier Research Institute

| ›Need for specific governance structures to successfully manage explorative technology alliances 23 Faems, Janssens, Madhok & Van Looy (2008) Toward an integrative perspective on alliance governance: Connecting contract design, trust dynamics and contract application. Academy of Management Journal, 61:1068 Narrow contractual interface structure Broad contractual interface structure Formalization of task division (Landau, 1969) Mutually exclusive task division Overlapping task division Formalization of information flows (Van de Ven & Fry, 1980) Absence of contractual obligation for information flows Presence of contractual obligation for information flows

| ›Technology alliances trigger substantial costs in the short-term  Alliance negotiation costs  Alliance coordination costs  Alliance portfolio management costs 24 Faems, De Visser, Andries & Van Looy (2010) Technology Alliance Portfolios and Financial Performance: Value- Enhancing and Cost-Increasing Effects of Open Innovation. Journal of Product Innovation Management: 792 Technology alliance portfolio diversity Focal firms’ innovation performance Focal firms’ financial performance ++ -

| Onderzoek Innovatiekracht MKB Noord Nederland 25 ›Vragenlijst verstuurd naar 1400 Noord- Nederlandse bedrijven die in de periode subsidie hebben aangevraagd via SNN in Februari 2015 ›263 bedrijven hebben vragenlijst substantieel ingevuld ›Participerende bedrijven krijgen individueel benchmarkrapport

| Bedrijfs- profiel Innovatie prestatie Innovatie- investering en Menselijk kapitaal Externe samenwerk ing Onderzoeksmodel

| Innovatiepiramide 27

| Bedrijfsprofiel 28

| Radicale Innovatiekracht 29

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| Factoren die radicale innovatiekracht positief beïnvloeden ›Percentage van de omzet dat werd uitgegeven aan interne O&O activiteiten in

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| Factoren die radicale innovatiekracht positief beïnvloeden ›Percentage van de omzet dat werd uitgegeven aan interne O&O activiteiten in 2014 ›Percentage hoogopgeleide werknemers in het bedrijf ›Toepassen van geheimhouding als bechermingsmethode voor innovatie ›Samenwerking met externe partners (enkel wanneer geheimhouding niet wordt toegepast) 33

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|37 Dank u wel & geniet van uw lunch