Organizational Structures

This chapter begins with the definition of the concept of the organization. The design of the company’s organizational structure and the management relations have a direct and immediate effect on innovation activity. The internal organizational structure and the related processes should be planned at an early stage and should be done so systematically. One thing to note here is that, according to the planning and definition, there should be a flexibility—also called built-in flexibility—to expand the organizational structure, which allows for short-term adjustment. The further development of the chapter explains the integration of innovation activities into the organizational structure. This integration can take place both internally and externally. In the case of internally organized innovation activities, the R&D activities are carried out centrally or decentrally within the company. In contrast, the externally organized integration of innovation activities is achieved through access to external knowledge. For example, freely available knowledge can be used or new know-how gained through the acquisition of innovative companies. Innovation activities can be broadened to include customers, suppliers and partners. The possibilities of forms of cooperation and other types of collaboration are shown below. Typical examples are the strategic alliance and crowdfunding. Another special form of cooperation includes so-called innovation labs. These labs allow, for example, the interdisciplinary exchange of information, knowledge and ideas. Consequently, innovation Labs assist the emergence of an innovation culture and the promotion of creativity. The different types of innovation labs are presented in this chapter. After discussing the internal and external organization of innovation activity as well as the different forms of cooperation in the development of innovations, this chapter ends by presenting the possibility of open innovation. Open Innovation, in contrast to closed innovation, sees external partners participate in all value-added stages, so they are not just available as a source of ideas. Access to existing knowledge for everyone involved is a prerequisite for Open Innovation.