Overcoming the innovation barrier: A search-selection model of breakthrough innovation in large firms

Abstract

Breakthrough innovations are important to the firm. They enable firms to challenge the existing technological order and shape new paths, allowing them to engage in corporate reinvention, growth and new business development. They represent rare, valuable and inimitable sources of competitive advantage for firms. Yet most established firms have too many obligations and too much to lose to justify the obvious risks of chasing radical possibilities. There are a number of causes for this risk averseness: Under-investment in radical innovation, falling into competency traps, being constrained by core rigidities, and remaining overly committed to their main customers. Drawing on previous research in the field, we suggest that two fundamental enabling conditions can be identified for an established firm wishing to engage in breakthrough innovation.