Innovation Failure and Learning Revisited: Conceptual Model and Empirical Evidence

Purpose: The premise explored in this paper is that strategic innovation encompasses both differentiation and organisational learning outcomes, whereby some of the learning outcome may have its origins in 'intelligent' innovation failure. While by no means a new insight, there is little empirical evidence in the literature to help explain the linkage between innovation and its various expressions as differentiation, organisational learning and failure. This study sets out to explore these linkages. Design/methodology/approach: This study is based on a conceptual model linking innovation effort, outcomes and competitive impact is proposed, and empirical research to corroborate the construct thus defined. Quantitative analysis of data derived from field research conducted with a sampling of entrepreneurial start-up firms hosted by a Swiss technology park forms the basis of the analysis. Originality/value: Statistical analysis (descriptive analyses, correlation analysis and regression analysis) provides evidence suggesting linkages between innovation learning outcomes derived from failed innovation effort and innovation leading to differentiation. Practical implications: The outcomes suggest key linkages between innovation outcomes derived from differentiation, learning and "intelligent" failure; moreover, preliminary implications for maximising differentiation outcomes through appropriate leveraging of learning derived from failed innovation effort are derived from the findings of this exploratory study.