Firm innovation system: Paths for enhancing corporate indigenous innovation capability

Abstract

To obtain a sustainable competitive advantage and achieve global innovation leadership, firms in China and other emerging economies must develop strong indigenous innovation capabilities through the coevolution of strategy, organization, resources, and culture. Drawing on current innovation management theories and practices, this study proposes four systematic paths for improving firm innovation systems (FISs), namely, the R&D-based internal collaborative FIS, the strategic vision-driven FIS, the open and user-driven FIS, and the holistic ecosystem-driven FIS. This study contributes to the systematic approach for enhancing corporate indigenous innovation capability based on FISs. Moreover, this study provides theoretical and practical insights for China as well as other developing countries to cultivate world-class enterprises and build an innovative nation.

Keywords

innovation-driven strategy / firm innovation system / national innovation system / holistic innovation theory / core competence

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