Innovation can be taught

Abstract

This paper summarizes the results of an extensive programme on stimulating industrial innovation in the Netherlands (the Project Industrial Innovation, Pii). Over five years (1980–84) 155 small and medium-sized industrial firms were taught by nearly 60 management consultants on how to innovate. The results in December 1984 were very positive: 71 percent of the companies have formulated businessplans for innovation; 21 innovations were introduced on the market; 76% of the companies stated that they had learned enough to go on with the process of innovating. This last result was questionable, because of its subjective nature. In December 1985 a study was carried out to investigate the long-term effects of this programme. The number of firms with businessplans had grown to 83 percent; the number of market introductions had increased to 43; the learning effect was up to 88 percent. This time it was possible to do some empirical observations which validated these results. The study also shows that innovations are not produced without considerable efforts. Nearly all companies encountered bottle-necks. The most influencial bottle-neck is management capacity. This (lack of) capacity is described in more detail by the participating management consultants. The quality of key personnel, inadequate project management and different management visions on innovation are mentioned by them. The paper shows the distribution of these bottle-necks among the different types of innovation. The exact influence of these bottle-necks remains undiscovered. The overall conclusion of the evaluation is that in spite of these bottle-necks innovation can be taught to small and medium-sized firms.