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Managing Innovation is an established, best-selling text for MBA, MSc and advanced undergraduate courses on innovation management, management of technology, new product development and entrepreneurship. It is also widely used by managers in both the services and manufacturing sectors. Currently in its fifth edition , Managing Innovation has been fully revised and now comes with a fully interactive e-book housing an impressive array of videos, cases, activities and tools to bring innovation to life. The book is also accompanied by the Innovation Portal, which contains an extensive collection of additional digital resources for both lecturers and students. Features: the Research Notes and Views from the Front Line feature boxes strengthen the evidence-based and practical approach making this a must-read for anyone studying or working within innovation. The Innovation Portal is an essential resource for both student and lecturer and includes the Innovation Toolkit - a fully searchable array of practical innovation tools along with a compendium of cases , activities , audio and video clips. The interactive e-book that accompanies the text provides enriched content to deepen the readers understanding of innovation concepts. "Tidd and Bessant's text has become a standard for students and practitioners of innovation. They offer a lively account on innovation management full of interesting and new examples, but one that at the same time is rigorously anchored in what we have learned over the last thirty years on how to manage that ultimate business challenge of renewing products, processes, and business models. Those who want to innovate must read this book." (Professor Arnoud De Meyer , Director, Judge Business School, University of Cambridge, UK). "Innovation matters and this book by two leaders in the field which is clear and practical as well as rigorous should be essential reading for all seeking to study or to become involved in innovation." (Chris Voss , Professor of Operations and Technology Management, London Business School, UK). "A comprehensive and comprehensible compendium on the management of innovation. It is very well organized and very well presented. A pedagogic tool that will work at multiple levels for those wishing to gain deeper insights into some of the most challenging and important management issues of the day." (David J. Teece , Thomas W. Tusher Professor in Global Business, Haas School of Business, University of California, Berkeley, USA).

Joe Tidd is Professor of technology and information management at SPRU (Science and Technology Policy Research) and visiting Professor at University College London, Cass Business School, Copenhagen Business School, and Rotterdam School of Management. Dr Tidd was previously Head of the Management of Innovation Specialisation and Director of the Executive MBA Programme at Imperial College.

John Bessant holds the Chair in Innovation and Entrepreneurship at Exeter University where he is also Research Director. In 2003, he was awarded a Fellowship with the Advanced Institute for Management Research and was also elected a Fellow of the British Academy of Management. He served on the Business and Management Panel of both the 2001 and 2008 Research Assessment Exercises. He has acted as advisor to various national governments and to international bodies including the United Nations, The World Bank and the OECD.

Preface to the Fifth Edition xv
How to Use This Book xvii
Part I Managing Innovation 1
Chapter 1 Innovation – What it is and Why it Matters 3
1.1 Introduction 3
1.2 Why Innovation Matters 5
1.3 Innovation and Entrepreneurship 8
1.4 How Innovation Matters 9
1.5 Old Question, New Context 15
1.6 What is Innovation? 18
1.7 A Process View of Innovation 21
1.8 Scope for/Types of Innovation 23
1.9 Exploring Different Aspects of Innovation 30
1.10 Managing Innovation . . . 46
Summary and Further Reading 53
References 55
Chapter 2 Innovation as a Core Business Process 59
2.1 Introduction 59
2.2 Variations on a Theme 61
2.3 A Contingency Model of the Innovation Process 74
2.4 Evolving Models of the Process 75
2.5 Can We Manage Innovation? 79
2.6 Building and Developing Routines Across the Core Process 82
2.7 Learning to Manage Innovation 83
2.8 Measuring Innovation Success 85
2.9 What Do We Know About Successful Innovation Management? 85
2.10 Success Routines in Innovation Management 88
2.11 Beyond the Steady State 95
Summary and Further Reading 98
References 99
Part II Context 105
Chapter 3 Building the Innovative Organization 107
3.1 Shared Vision, Leadership and the Will to Innovate 109
3.2 Appropriate Organization Structure 115
3.3 Key Individuals 120
3.4 High Involvement in Innovation 124
3.5 Effective Team Working 132
3.6 Creative Climate 139
3.7 Boundary-Spanning 155
Summary and Further Reading 161
References 161
Chapter 4 Developing an Innovation Strategy* 169
4.1 ‘Rationalist’ or ‘Incrementalist’ Strategies for Innovation? 170
4.2 The Dynamic Capabilities of Firms 182
4.3 Appropriating the Benefi ts from Innovation 188
4.4 Technological Trajectories 195
4.5 Developing Firm-Specifi c Competencies 198
4.6 Globalization of Innovation 212
4.7 Enabling Strategy Making 218
Summary and Further Reading 224
References 225
Part III Search 231
Chapter 5 Sources of Innovation 233
5.1 Where do Innovations Come From? 233
5.2 Knowledge Push . . . 234
5.3 Need Pull . . . 236
5.4 Whose Needs? 243
5.5 Towards Mass Customization 249
5.6 Users as Innovators 252
5.7 Extreme Users 256
5.8 Watching Others 258
5.9 Recombinant Innovation 259
5.10 Design-led Innovation 260
5.11 Regulation 262
5.12 Futures and Forecasting 262
5.13 Accidents 263
5.14 A Framework for Looking at Innovation Sources 266
5.15 How to Search 268
5.16 Absorptive Capacity 271
5.17 Balancing Exploitation and Exploration 273
5.18 Tools and Mechanisms to Enable Search 274
5.19 Two Dimensions of Innovation Search 284
5.20 A Map of Innovation Search Space 286
Summary and Further Reading 292
References 293
Chapter 6 Innovation Networks 299
6.1 No Man is an Island . . . 299
6.2 The ‘Spaghetti’ Model of Innovation 301
6.3 Innovation Networks 302
6.4 Networks at the Start-Up 309
6.5 Networks on the Inside . . . 311
6.6 Networks on the Outside 313
6.7 Networks into the Unknown 316
6.8 Managing Innovation Networks 319
Further Reading and Resources 323
References 324
Part IV Select 327
Chapter 7 Decision Making Under Uncertainty 329
7.1 Introduction 329
7.2 Meeting the Challenge of Uncertainty 330
7.3 The Funnel of Uncertainty 330
7.4 Decision Making for Incremental Innovation 332
7.5 Building the Business Case 336
7.6 Building Coalitions 336
7.7 Spreading the Risk – Building a Portfolio 338
7.8 Decision Making at the Edge 339
7.9 Mapping the Selection Space 346
Summary and Further Reading 354
References 354
Chapter 8 Building the Innovation Case 359
8.1 Developing the Business Plan 359
8.2 Forecasting Innovation 362
8.3 Estimating the Adoption of Innovations 369
8.4 Assessing Risk, Recognizing Uncertainty 378
8.5 Anticipating the Resources 384
Summary and Further Reading 399
References 400
Part V Implement 403
Chapter 9 Creating New Products and Services 405
9.1 Processes for New Product Development 405
9.2 Infl uence of Technology and Markets on Commercialization 421
9.3 Differentiating Products 425
9.4 Building Architectural Products 430
9.5 Commercializing Technological Products 437
9.6 Implementing Complex Products 441
9.7 Service Innovation 446
Summary and Further Reading 456
References 457
Chapter 10 Exploiting Open Innovation and Collaboration 461
10.1 Joint Ventures and Alliances 461
10.2 Collaborating with Suppliers to Innovate 486
10.3 User-Led Innovation 491
10.4 Benefits and Limits of Open Innovation 493
Summary and Further Reading 496
References 497
Part VI Capture 503
Chapter 11 Exploiting Entrepreneurship and New Ventures 505
11.1 What is a Venture? 505
11.2 Internal Corporate Venturing 517
11.3 Spin-Outs and New Ventures 538
Summary and Further Reading 559
References 560
Chapter 12 Capturing the Benefi ts of Innovation 565
12.1 Creating Value Through Innovation 565
12.2 Innovation and Firm Performance 569
12.3 Exploiting Knowledge and Intellectual Property 573
12.4 Broader Economic and Social Benefi ts 595
12.5 Choosing a Business Model 611
Summary and Further Reading 618
References 619
Chapter 13 Capturing Learning from Innovation 623
13.1 What have We Learned About Managing Innovation? 623
13.2 How can We Build Dynamic Capability? 625
13.3 Learning to Manage Innovation 626
13.4 Tools to Help Capture Learning 628
13.5 Innovation Auditing 630
13.6 Measuring Innovation Performance 631
13.7 Measuring and Developing Innovation Management Capability 632
13.8 Using the Framework 637
13.9 Variations on a Theme 638
13.10 Final Thoughts 642
Summary and Further Reading 644
References 644
Index 647
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