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Systemic Innovation in a Distributed Network Paradox or Pinnacle?

  • Poul Houman Andersen
  • Ina Drejer

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
Contact details of provider: Web page: http://www.druid.dk/

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  5. Virginia Acha & Lucia Cusmano, 2005. "Governance and co-ordination of distributed innovation processes: patterns of R&D co-operation in the upstream petroleum industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(1-2), pages 1-21.
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