Integrated innovation: the necessary route to profitability

Abstract

In a high cost environment a firm’s ability to create value and hence survive and prosper is dependent on its ability to innovate. This chapter discuss the two principle dimensions of innovation: value creating innovations and value appropriating innovations–what their components are and how they should be integrated. The chapter also covers important frameworks to address the different components. Towards the end the discussion is contrasted against what is known about success criteria for firms in high cost operating environments to illustrate the specific aspects that have been covered in the chapter.