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The Capability-Related and Network-Related Causes for Innovation Failure and Success

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Innovation Systems in Small Catching-Up Economies

Part of the book series: Innovation, Technology, and Knowledge Management ((ITKM,volume 15))

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Abstract

Innovations are often associated with substantial risks and failure is not rare. It is, therefore, important to study what causes innovation failure, how to reduce the risk of failing and how to increase the chance of innovation success. The paper aims to study how network relationships (or the lack of them) and (the lack of) capabilities lead to innovation failure or success in Estonian firms. Based on survey results from 95 firms and the evidence from 48 interviews, it concludes that the lack of capabilities and network relationships may lead to innovation failure. Network relationships may also constrain innovation: for example, if foreign owners do not allow a firm to do (substantial) R&D because its main role is production or if a company’s customers or subcontractors are not interested in innovative products or solutions. For this reason, firms should pay more attention to participating in those networks that could advance their innovative capabilities and increase the success of their innovation efforts. At the same time, they should take into account that participating in networks does not automatically guarantee success: some relationships or their dissolution may also lead to innovation failure. Consequently, partners should be selected very carefully.

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Acknowledgments

The research was financed by the Estonian Science Foundation’s Grants No. 7405 and 8546 and target financing of the Estonian Ministry of Education and Research No. 0180037s08.

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Authors and Affiliations

  1. University of Tartu, Tartu, Estonia

    Tiia Vissak

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  1. Tiia Vissak
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Correspondence to Tiia Vissak .

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Editors and Affiliations

  1. School of Business, George Washington University, Washington, 20052, District of Columbia, USA

    Elias G. Carayannis

  2. Tartu, 51009, Estonia

    Urmas Varblane

  3. Tartu, 51009, Estonia

    Tõnu Roolaht

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Vissak, T. (2012). The Capability-Related and Network-Related Causes for Innovation Failure and Success. In: Carayannis, E., Varblane, U., Roolaht, T. (eds) Innovation Systems in Small Catching-Up Economies. Innovation, Technology, and Knowledge Management, vol 15. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-1548-0_9

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