The innovation value chain

Stephen Roper, Jun Du, James H. Love

Research output: Working paper

Abstract

Innovation events - the introduction of new products or processes - represent the end of a process of knowledge sourcing and transformation. They also represent the beginning of a process of exploitation which may result in an improvement in the performance of the innovating business. This recursive process of knowledge sourcing, transformation and exploitation we call the innovation value chain. Modelling the innovation value chain for a large group of manufacturing firms in Ireland and Northern Ireland highlights the drivers of innovation, productivity and firm growth. In terms of knowledge sourcing, we find strong complementarity between horizontal, forwards, backwards, public and internal knowledge sourcing activities. Each of these forms of knowledge sourcing also makes a positive contribution to innovation in both products and processes although public knowledge sources have only an indirect effect on innovation outputs. In the exploitation phase, innovation in both products and processes contribute positively to company growth, with product innovation having a short-term ‘disruption’ effect on labour productivity. Modelling the complete innovation value chain highlights the structure and complexity of the process of translating knowledge into business value and emphasises the role of skills, capital investment and firms’ other resources in the value creation process.
Original languageEnglish
Place of PublicationBirmingham (UK)
PublisherAston University
Number of pages39
ISBN (Print)1-85449-659-X
Publication statusUnpublished - Dec 2006

Publication series

NameAston Business School research papers
PublisherAston University
No.RP0639

Fingerprint

Value chain
Innovation
Knowledge sourcing
Exploitation
Modeling
Complementarity
Value creation
Labour productivity
Knowledge transformation
Disruption
Product innovation
Indirect effects
Capital investment
Productivity growth
Business value
New products
Large groups
Ireland
Manufacturing firms
Company growth

Bibliographical note

Aston Business School Research Papers are published by the Institute to bring the results of research in progress to a wider audience and to facilitate discussion. They will normally be published in a revised form subsequently and the agreement of the authors should be obtained before referring to its contents in other published works.

Cite this

Roper, S., Du, J., & Love, J. H. (2006). The innovation value chain. (Aston Business School research papers; No. RP0639). Birmingham (UK): Aston University.
Roper, Stephen ; Du, Jun ; Love, James H. / The innovation value chain. Birmingham (UK) : Aston University, 2006. (Aston Business School research papers; RP0639).
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Roper, S, Du, J & Love, JH 2006 'The innovation value chain' Aston Business School research papers, no. RP0639, Aston University, Birmingham (UK).

The innovation value chain. / Roper, Stephen; Du, Jun; Love, James H.

Birmingham (UK) : Aston University, 2006. (Aston Business School research papers; No. RP0639).

Research output: Working paper

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M3 - Working paper

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Roper S, Du J, Love JH. The innovation value chain. Birmingham (UK): Aston University. 2006 Dec. (Aston Business School research papers; RP0639).