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Innovation Economics, Engineering and Management Handbook 1


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assumption is that innovation in these spaces is related to absorptive capacity (Cohen and Levinthal 1990) – an ability of the organization to identify the value of new information, to assimilate it and apply it for commercial purposes. This capacity depends on knowledge and skills already acquired by the firm’s actors in their past exploration and exploitation of technologies and markets. In fact, there is a form of path dependency (Antonelli 1997; Belussi and Sedita 2009) guiding new explorations of new ideas to extend existing knowledge bases, in order to develop innovation. These pathways allow for faster progress in the learning process to innovate.

      However, too much openness can be counterproductive for two reasons. On one hand, firms run the risk of rapid imitation by competitors, hence the importance of forms of protection for their intellectual property. On the other hand, a multiplication of interaction spaces can end up generating too much noise, too much information that is difficult to combine, leading to misunderstanding and dispersion in the end. In fact, openness does not need to be complete for an organization. It is more a question of creating porosity through specific connections from internal space to external space, by leveraging technologies in the form of licensing or spin-offs, and also from external space to internal space by including new technologies from other networks (Chesbrough 2012).

      However, these two perspectives are not incompatible. A balanced approach allows us to understand that innovation needs both centripetal and centrifugal movements to advance more quickly and efficiently. In the beginning, innovation may need some form of protection, even though this incubation does not take place in a vacuum. The metaphor of the baby as a fetus can be enlightening here. The fragility of the fetus presupposes its protection in the womb. Although isolated and nourished in the amniotic fluid, the baby remains in contact with the world. After birth, interaction and openness become more fundamental. Innovation needs porosity and connectivity in a balanced way at different times and in different contexts. Moreover, business incubators have two functions of protection and intermediation, as Amezcua et al. (2013) have pointed out. Beyond the spaces dedicated to innovation, this duality is inherent to any organization, which like a living organism, contracts and expands, explores and exploits, opens and closes, specializes and diversifies, etc. Thinking of innovation as any complex phenomenon implies not opposing opposites but thinking of them in a complementary relationship (Morin 2005).

      2.2.2. Developing links within and outside the spaces

      The classic players in innovation are the designated specialists: R&D engineers, designers, product developers, actors of change in production processes, etc. By broadening the perimeter or space for innovation, the innovation players are also multiplied. Thus, anyone involved in the design of new products and processes becomes an innovator (Dyer et al. 2009), as well as anyone who transforms them into opportunities (Shane and Venkataraman 2000) in organized forms (Gartner 2017). In recent years, we have observed a democratization of these two roles that were previously specialized and reserved for a minority (Audretsch 2007). This democratization goes hand in hand with the idea that innovation is a permanent process of an organization’s evolution, which is circumscribed in time and delimited within certain organizational boundaries. It seems to accelerate with the possibility of everyone participating and contributing systematically to innovation in the firm, thanks to the potential of information and communication technologies, opening up a networked society (Castells 2000).

      The identification of these emerging ideas and the recognition of their bearers are the first steps for their development within the organization. However, the company should not stop there. Once the “good ideas” have been selected, the support and development of these ideas involves obtaining resources and, above all, putting them in contact with other knowledgeable players, in order to turn the idea into an opportunity for the company internally or externally. It is at this level that incubation facilities can play a crucial role as dedicated spaces for transforming ideas into opportunities, whether they be products for a new market or processes to improve the organization itself. We find here, the importance of this phase, or centrifugal movement, to protect the development of the innovation idea through selected resources and links. However, even though the development of new knowledge is often protected, innovation spaces do not operate in a vacuum. They are connected to knowledge and information networks on technologies, markets and society as a whole. At the scale of a city, Simon (2009) demonstrates the importance of innovation communities operating in different social groups with different roles and activities. For a company located in this city that wants to benefit from this new knowledge, it is important to establish varied relationships with the actors in the different areas of innovation where the standards are not the same.