Innovation Portfolio Research Articles

The European Innovation Council supports innovative portfolios in health biotech.

The European Innovation Council supports innovative portfolios in health biotech.

Innovation portfolio management for the public non-profit research and development sector: What can we learn from the private sector?

ABSTRACT Innovation Portfolio Management refers to the systems, processes and mechanisms to intentionally manage innovation investments and decisions within an organization against its mission or strategy. This approach to managing and optimizing innovation and scaling investments is rarely used by public non-profit R&D organizations. This study draws lessons from innovation portfolio management in private sector organizations. Private sector invests in innovation portfolio management to: (i) enhance transparent and evidence-based decision-making, (ii) strengthen organizational agility and mission-orientedness, (iii) facilitate monitoring, risk management and prioritization and (iv) improve overall organizational performance and learning. These innovation portfolio management benefits are equally relevant for the public non-profit R&D sector, where innovation performance and outcomes are for societal impact. Public non-profit R&D can and should manage their innovation portfolios more intentionally, and can learn from private sector successes and challenges. Embracing the opportunities, whilst managing the challenges and risks requires investment in methods, mechanisms and mindsets for effective innovation portfolio management.

Back-shoring vs. Offshoring: The importance of innovating with host-country inventors

This study investigates the association between the intensity of innovation activities that firms perform offshore with host-country inventors (IHCI) and the time before back-shoring, a rising form of de-internationalization. IHCI is viewed as a pull factor that alleviates liabilities of both foreignness and outsidership, hence creating incentives for more extended offshoring stays. Additionally, the study investigates whether specific types of IHCI are associated with offshoring duration, namely IHCI leading to exploratory innovation and IHCI leading to an innovation portfolio with a broad scope. The study employs a Cox model to analyze 301 offshoring initiatives implemented by US firms, partially or totally ended through back-shoring. Results suggest that IHCI is associated with longer offshore duration. Further, duration is longer when IHCI leads to a broader innovation portfolio.

Backcasting supports cross-sectoral collaboration and social-technical innovation bundling: case studies in agri-food systems

There is a clear and urgent call to transform our food systems as a critical nexus to tackle ongoing global climate, biodiversity, equity, and nutrition crises. Many food and agricultural innovations are being developed and scaled but these innovations often target sector-specific problems and remain disconnected from the more complex demand for transformative change at scale. To bridge this demand for systemic change within the innovation ecosystem, initiatives are applying various approaches such as visioning, holistic assessments, innovation portfolio management and multistakeholder co-creation. Here we report on insights from applying a food systems tailored backcasting approach in a diversity of settings since 2021, including a national food system dialogue, a youth business innovation challenge, a landscape multi-stakeholder platform, a public-private sector co-learning session, an agroecological transitions program, and a hybrid food systems university course for graduate students and global professionals. We thereby build on existing literature and case studies of how change happens (or does not happen) and aim to use those insights to support food systems change makers. Across these settings, the backcasting approach asks participants to connect innovations with broader systems-change visions, to anticipate tradeoffs for multiple food system outcomes and population groups, and to cross sectoral boundaries. The use cases demonstrate that the backcasting process contributes to changes in views, practices and structures that participants work with. Specifically, it supports moving beyond “silver bullet” innovation approaches, the bundling of social and technical innovations, and building action-oriented cross-sectoral bridges. Food systems change is complex and innovations alone are insufficient to address its complexity. But innovations can play a positive role if connected to more holistic systems-change processes and goals. Considering strengths and limitations of the backcasting approach, the diversity of practical applications supports its potential to connect innovations to holistic food systems visions, to strengthen cross-sectoral collaboration and to bundle social and technical innovations for desirable food systems change.

Incongruities in Innovation: Exploring Inconsistencies in Business Innovation Strategies

This research explores the phenomenon of incongruities in business innovation strategy through a systematic literature review. Analysis of the current literature reveals different types of incongruities, their causal factors, and their impact on innovation performance. Findings show that strategy-implementation gaps, culture-innovation misalignment, and resource allocation inconsistencies are the most common types of incongruities. Factors such as short-term performance pressure and resistance to change contribute significantly to the occurrence of incongruities. Their impact on innovation performance includes innovation portfolio imbalance and failure in radical innovation. Strategies to overcome incongruities include the development of ambidextrous leadership, balanced innovation portfolio management, and enhancement of organizational dynamic capabilities. This research highlights the importance of a holistic approach in innovation management and provides directions for future research.

Board of Directors' Human Capital: Effect on Innovation in Large Firms

This study investigates the relationship between a board of directors' human capital and innovation outcomes. Building upon previous work, we conceptualize the human capital of the board of directors' depth, breadth, and ambidexterity. We test our model using random sample data from S&P 500 companies. The results show that the capital depth of a board leads to more industry-specific innovation while a board's breadth will enable a more diversified innovation portfolio. Further, board ambidexterity is associated with increased patents. Theoretical and practical contributions are discussed.

Innovating in a bioimaging core through instrument development.

Developing devices and instrumentation in a bioimaging core facility is an important part of the innovation mandate inherent in the core facility model but is a complex area due to the required skills and investments, and the impossibility of a universally applicable model. Here, we seek to define technological innovation in microscopy and situate it within the wider core facility innovation portfolio, highlighting how strategic development can accelerate access to innovative imaging modalities and increase service range, and thus maintain the cutting edge needed for sustainability. We consider technology development from the perspective of core facility staff and their stakeholders as well as their research environment and aim to present a practical guide to the 'Why, When, and How' of developing and integrating innovative technology in the core facility portfolio. Core facilities need to innovate to stay up to date. However, how to carry out the innovation is not very obvious. One area of innovation in imaging core facilities is the building of optical setups. However, the creation of optical setups requires specific skill sets, time, and investments. Consequently, the topic of whether a core facility should develop optical devices is discussed as controversial. Here, we provide resources that should help get into this topic, and we discuss different options when and how it makes sense to build optical devices in core facilities. We discuss various aspects, including consequences for staff and the relation of the core to the institute, and also broaden the scope toward other areas of innovation.

EFFECTIVENESS OF THE INNOVATION PORTFOLIO IN POLISH ENTERPRISES – RESEARCH RESULTS

A single innovation project has a low probability of success, while the company’s chances of gaining a competitive advantage are low. Only a properly diversified innovation portfolio gives a chance for market success. The aim of the article is to analyze the issue of the effectiveness of innovation portfolio management in Polish enterprises, due to various external and internal factors, and also to identify clues determining the success of the innovation portfolio among enterprises in the future. For this purpose, a literature review in the area of the innovation portfolio was conducted. Also the method of analysis and criticism of the literature was applied. In the research process, empirical articles and Statistics Poland reports were analyzed. As a result of the analyses, effective ways to build innovation portfolio efficiency were identified by pointing out factors that can contribute to key optimization decisions (e.g., proper planning and diversification of the innovation project portfolio). Enterprises, in order to achieve innovation portfolio efficiency in difficult market conditions, should reallocate their resources to less risky innovation projects, and at the same time accepting the risks associated with introducing a transformational innovation.

Combining the multi-level perspective framework with participatory scenario development to explore the many facets of food system transitions in Germany

Transitions to more sustainable food systems are urgently needed, but they are also very complex and hard to achieve. The integration of transdisciplinary approaches into transition research can help to understand and promote sustainable food system transitions, but remains an agenda item in this research field. To fill this gap, this article describes how the multi-level perspective (MLP) can be used as a framework for explorative, participatory scenario development. On the one hand, MLP provides scholars with a framework for understanding the dynamics of transitions. On the other hand, participatory scenario development brings together academic and non-academic actors and perspectives to explore and promote possible development pathways. Based on this framework, researchers and practitioners jointly co-created four scenarios of how the landscape of five relevant European food innovations located in established food systems or niches (alternative sources of proteins, prosumer initiatives, regional value chains, school meal programs, and dietary interventions) might change by 2040 and further explored how these food innovations might evolve under the scenarios. The results provide initial insights into the role that food innovations could play in different transition pathways and also indicate the value of a diverse portfolio of food innovations to respond to changing circumstances. Furthermore, the process allowed participants to develop a shared understanding of food system dynamics and explore potential future risks and opportunities for food innovations, showing that participatory scenarios based on the MLP framework are a useful lens for exploring sustainable food system transitions.

Alternative Approaches to Innovation Project Portfolio Governance

The governance of projects is often treated operationally, as project portfolio management. Project portfolio governance is more strategic and continuous than project portfolio management, but its various approaches are weakly understood. This study explores project portfolio governance in innovative companies. The resulting framework characterizes governance approaches in terms of the authority given to portfolio actors and the rhythm of using governance practices. Differences among the delegated, regulated, and consultative governance approaches appear to stem from the industry clock speed, innovation portfolio type, and organizational context. This study differentiates project portfolio governance approaches as part of organizational project management governance.

Unraveling data from an idea management system of 11 radical innovation portfolios: key lessons and avenues for artificial intelligence integration

In strategic and radical innovation, the degree of uncertainty and the amount of complexity is much higher compared to ‘business as usual’. Therefore, idea management systems are often used to support such innovation processes. An interesting question is what we can learn from studying data in such idea management systems and what potential implications we can derive from the innovation management literature. In this study, we were allowed to access and analyze data from the same idea management system used in 11 radical innovation projects from the years 2012–2018. Our analysis unravels 8 findings that in different ways nuance or challenge current research on innovation management. Finally, we discuss how the integration of artificial intelligence (AI) in idea management systems can support innovation team members in increasing the innovation potential of the ideas that are elaborated.

Strategic Decisions Are Rational And Emotional: A Field Experiment Study of Innovation Portfolio Reviews

Strategic Decisions Are Rational And Emotional: A Field Experiment Study of Innovation Portfolio Reviews

Creativity Complements Discipline: An Empirical Investigation of Innovation Portfolios and Business Performance

Creativity Complements Discipline: An Empirical Investigation of Innovation Portfolios and Business Performance

Portfolio Optimization Strategy Based on Four Deep Learning Models

Deep learning techniques have provided a fresh outlook on the evergreen subject of portfolio optimization within the finance domain. This article selects the stocks of Google, Tesla, Tractor Supply Company, Analog Devices, and Duke Energy Corporation and deploys four deep learning models to estimate returns and covariance respectively. The mean-variance model is utilized to generate the target portfolio for each deep learning model, incorporating the predicted outcomes. Ultimately, the returns of each portfolio are compared to the market benchmark (S&P 500) returns. The findings demonstrate that the proposed target model outperforms the market benchmark (S&P 500) across multiple financial metrics. This study highlights the groundbreaking and promising applications of deep learning in the financial sector, providing valuable insights into innovative portfolio allocation strategies for risk-averse investors who aim to achieve stable and positive returns even in turbulent market conditions.

Public sector innovation for sustainable development goals: A comparative study of innovation types in Thailand and Korea

AbstractThe aim of this paper is to compare the focus (strategy, capacity, and operation) and locus (internal and external) of innovation types of Sustainable Development Goals (SDGs)‐oriented public sector innovation (PSI) in Thailand and Korea and to contribute to the limited understanding of the role of national context in PSI. Our study analysed 263 SDGs‐oriented innovations based on the new typology proposed by Chen et al. The findings identified that the orientation of SDGs‐oriented PSI is more external and policy innovation is the most common type in both countries. These distributions, however, vary depending on the contextual differences in administrative and technological contexts, resulting in SDGs‐oriented PSI in Korea emphasised on strategy focus, whereas Thailand emphasised capacity focus. This also demonstrates a temporality between strategy, capacity, and operations foci in Korea, but Thailand attempted to fill the capacity gap through SDGs‐oriented innovation. Insights from this empirical study can assist public managers in selecting innovation portfolio configurations applicable to their national context.Points for practitioners In executing public sector innovation, public sector organisations (PSOs) should consider the innovation focus (strategy, capacity, and operation) and the innovation locus (internal and external). For SDGs‐oriented innovation, mission and policy innovation should introduce the necessary strategies in the public services before capacity and operation focus. Public managers and practitioners should adopt an innovation portfolio approach to develop and introduce a variety of innovation types. Public managers should consider their national context to select the configuration of their innovation portfolios.

The role of innovation portfolio in green innovation decisions: A study of French and Italian firms

Recent research has shown that Green Innovation (GI) may be a profitable strategy, provided that the innovating firm enjoys synergies raised by specific combinations of innovation domains. Therefore, GI decisions may depend on the firm's overall innovation portfolio. Along this line of research, this paper aims at identifying combinations of innovation domains (product, process, organization and marketing) which affect a firm's decision to engage in green innovation. We propose a conceptual framework of interactions among innovation domains whose hypotheses are tested based on the Community Innovation Survey (CIS 2012–2014) dataset for France and Italy. Separately for each country, we identify synergic effects of technological (product and process), non-technological (organizational and marketing), demand-related (product and marketing) and supply-related (process and organizational) innovation domains. We find that all the above synergy axis favor GI, and this holds regardless of the surveyed country. However, other combinations of innovation domains do not favor GI and may even hinder it. Specifically, the interaction between process and marketing innovation, might have a negative effect on a firm's likelihood to engage in GI. This occurs in the French sample, while the effect is neutral in the Italian one.

Reducing the gap between rhetoric and reality: Use of Digital Service Standards for public service innovation through digital transformation in Australia

AbstractNearly a decade ago, the Australian Federal Government introduced a Digital Service Standard (DSS) for new and redesigned government services. This was an opportunity to encourage digital services and disruptive innovations to help the government improve citizens outcomes, and indeed there was a significant uptake in the digital services assessments offered by the program with key government agencies across health, human services, taxation, and education on board. However, by the 2020s the number of publicly visible assessments had significantly reduced. The initial broad adoption and recent reduction in numbers present an opportunity to explore the effectiveness of this government innovation management program that was ahead of its time. This paper reviews the impact of the DSS in fostering public service innovation and presents lessons learnt from the program. To perform this analysis, this research evaluates to what extent the DSS applied common private sector innovation management approaches of Innovation Process Management and Innovation Portfolio Management in the public sector. It also looks at the impact of these programs in encouraging specific types of modern digital innovations. The analysis draws on DSS assessments from 2015 to 2021 and considers how the program demonstrated public sector innovation leadership. This paper proposes a framework to improve the DSS by tailoring its approach for new and existing services, adopting specific standards to encourage incremental and disruptive innovations, and promoting more transparent reporting and funding of innovation management programs. This evaluation found that the DSS exemplifies Innovation Process Management in its use of stages and gates, and Innovation Portfolio Management in its use of targeted assessment criteria across innovation portfolios of various government agencies. The analysis also identified design limitations in the DSS as a whole of government innovation management approach due to its limited uptake in multiple large agencies and lack of specific standards to encourage different types of innovation. The impact of this research is to increase the adoption of the DSS and increase the innovation outcomes delivered by this government program. We conclude by reflecting some of the unique considerations in applying private sector innovation management practices in the public sector.Points for practitioners Innovation management techniques are emerging but remain immature in the public sector. Australia has shown leadership in Government Innovation Process and Portfolio Management. Government must remain committed to innovation management programs and sharing the outputs of these programs. Government Innovation Management Programs should build in flexibility to encourage different types of innovation.

Patented Technology Innovation Portfolio in Producing Biofuel Using the Theory of Inventive Problem Solving (TRIZ) Methodology

AbstractEthanol is produced from biomass through pyrolysis, a technology creating business prospects for biofuels. The power may be utilized in turbines, engines, boilers, manufacturing, and energy production. Two of the numerous benefits of pyrolysis technology are low operational costs and simple liquid fuel storage and transportation. The theory of inventive problem solving (TRIZ) approach of systematic innovation is compatible with patent database analysis to produce innovations used for this study. The development of biofuel pyrolysis technology can benefit from the systematic innovation provided by the TRIZ framework. Patent portfolio analysis can profit from TRIZ's unique perspective due to its utilization of three essential indicators. The first metric examines the evolution of patented technology over the previous two decades and offers recommendations for advancing the sector. Patent‐protected scientific research and technology applications give essential insight into and foresight of future technological breakthroughs in various industries.

Embracing paradox and contingency: integration mechanisms for ambidextrous innovation portfolio management

PurposeThe purpose of this paper is to explore how organizations manage and integrate exploration and exploitation across the innovation project portfolio. Such ambidextrous capabilities are required for organizations to innovate and succeed in today's rapidly changing competitive environment. Understanding how exploration and exploitation projects are integrated can illustrate ways to enhance ambidexterity and boost learning for the benefit of both approaches.Design/methodology/approachA multiple-case study approach was used to explore innovation portfolio management in six large organizations that emphasize innovation in their strategies.FindingsThe findings draw upon concepts of paradox and contingency to reveal that the inherent tension between formality and flexibility in managing innovation project portfolios is aligned with the need for organizational ambidexterity that maintains effective exploitative innovation while supporting explorative innovation capabilities. Four integration mechanisms are identified that enhance ambidexterity across the innovation portfolio by embedding processes for transition from exploration to exploitation and cross-fertilizing knowledge to build innovation capability across both exploration and exploitation.Practical implicationsManagers may find inspiration on ways to enhance learning by bridging exploration and exploitation projects from the four types of integration mechanisms. Recognizing the paradoxical nature of the tension between formality and flexibility in project and portfolio management may also help guide organizations to effectively develop ambidextrous approaches to enhance overall innovation outcomes.Originality/valueIn contrast to perspectives which suggest that paradox and contingency approaches represent disparate perspectives, the authors demonstrate how they can complement each other and work together through innovation portfolio management to support ambidexterity at the portfolio and project levels.

Impact of Real Manipulation and Tax Compliance on Strategy Model: A Simulative Prediction of The Future Certainty

High awareness of obedience and compliance is a fundamental requirement in monitoring going concerned, reflecting a critical role of meaningful accounting information. This research tested earnings quality to measure belief and faith in achieving a sustainable business as optimism and confidence in the better one. The collecting data concerned the listed manufacturing company during 2010-2021, where purposive sampling and moderated regression with dummy variables were to capture the strategy topologies. The causal research observed amounted to 214 companies, illustrating that the number of valid observations has been 1.278 samples. The finding depicts the mapping of the investor reaction to quality accounting information related to this rational decision model in predicting the high future certainty as a positive signal. Bayes Teorema and Decision Tree Model are used to distinguish the prospective company as a highly guaranteed information; the social responsibility of the regulator is to minimize the distortion by implementing the going-private procedure for the low-prospected one; pragmatically, one platform of financial reporting service is to deduct a minimum chance for opportunity accruals. As a new insight into the literature in accounting, this simplex-linear programming has been modified into an innovative portfolio as an artificial intelligence model to maximize each utility.