The Timing of Innovation

Abstract

AbstractNot all innovations are successful. While innovation is vital to keeping ahead (or at least level) in the Red Queen Retail Race, it must be the right innovation at the right time. Thus, the capability to innovate has tremendous importance. The continued success and survival of firms depend on it. Innovation gives an edge on competition, and failure to change has been the undoing of many companies. Innovation is also linked to economic growth, and governments around the world enact policies in support of innovation. Moreover, external pressures, whether long-term changes, such as the ongoing digital revolution, or short-term shocks, such as the recent coronavirus pandemic, highlight the importance of innovation capability even further. Depending on the organization, such external pressures can present a cornucopia of opportunities or a kiss of death. This chapter begins with a short overview of the innovation literature, with a focus on why the timing of innovation is relevant. This is followed by a review of innovation capability. It then proposes a construct of innovation capability consisting of capacity, ability, and value. Capability is important but alone insufficient in explaining the timing of innovation. Therefore, the chapter also examines the external forces that act as an impetus to innovation. It then proceeds to show how the implementation of innovation depends on both capability and impetus. Finally, it develops a new model of the timing of innovation that is a function of capabilities, impetus, and implementation.