Strategic innovation: Exploring the link between differentiation, learning and innovation failure in start-up enterprises

DOI: 10.5176/2251-2039_IE1244

Authors: George Tovstiga and Henning Grossmann

Abstract: The premise underlying the exploratory study described in this paper is that strategic innovation encompasses both differentiation and organisational learning outcomes, whereby some of the learning outcome may have its origins in ‘intelligent’ innovation failure. While by no means a new insight, there is little empirical evidence in the literature to help explain the linkage between innovation and its various expressions as differentiation, organisational learning and failure. A conceptual model linking innovation effort, outcomes and competitive impact is proposed. Empirical quantitative research data derived from field research conducted with a sampling of entrepreneurial start-up firms hosted by a Swiss technology park forms the basis of the analysis. Preliminary statistical analysis (correlation analysis and regression analysis) provides evidence that links innovation learning outcomes derived from failed innovation effort to innovation leading to differentiation.

Keywords: strategic innovation, differentiation, competitive advantage, organisational learning; start-up enterprises