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Systemic Innovation in a Distributed Network Paradox or Pinnacle?

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Author Info
Poul Houman Andersen
Ina Drejer
Abstract

Previous research has suggested that there is a dichotomy of organisational practices: companies involved in autonomous or modularised innovations, it is argued, benefit from decentralised approaches where coordination primarily takes place through the marketplace, whereas the benefits of systemic innovation are said to be appropriated best by centralised organisations. However, case studies of subcontractors to the Danish wind turbine industry suggest that the ability to meet heterogeneous demands plays an important role for the success of different forms of organisational practices in relation to innovation. The modularised versus systemic architecture approach therefore appears to be a too sweeping dichotomy for describing what can better be perceived as an array of different practices for balancing innovation contribution with the ability of individual firms to appropriate innovation benefits – and a heterogeneous market perception is a core element in building and sustaining this ability.

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Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 06-13.

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Date of creation: 2006
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Handle: RePEc:aal:abbswp:06-13

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Related research
Keywords: Organisational Forms; Innovation System; Knowledge Complementarities; Value Appropriation;

Find related papers by JEL classification:
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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    Other versions:
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  7. Carlsson, Bo & Jacobsson, Staffan & Holmen, Magnus & Rickne, Annika, 2002. "Innovation systems: analytical and methodological issues," Research Policy, Elsevier, vol. 31(2), pages 233-245, February. [Downloadable!] (restricted)
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