A new nature of innovation is emerging. In order to formulate appropriate innovation policy encompassing a new nature of innovation, it is important to understand how the nature of innovation is changing. Innovation is no longer mainly about science and technology. Firms can innovate in other ways. Co-creation, user involvement, environmental and societal challenges increasingly drive innovation today. Collaborative, global networking and new public private partnerships are becoming crucial elements in companies’ innovation process.
This report to the OECD on the New Nature of Innovation is an important milestone. It represents four significant philosophical departures. From a traditional “firm centric view” of innovation, this study moves us to a “personalized, cocreated view” of innovation, from the centrality of the firm to the centrality of the individual. Secondly, it demonstrates the institutional interdependencies in innovation process where specialized skills are sourced from around the world. Thirdly, innovation is seen not as episodic but interactive, iterative and continuous. Finally, this is a call for democratizing innovation. Consumers not just institutions will have their share of voice in the innovation process. The entire ecosystem of suppliers, nodal firms and consumers will be involved in the creation of value. Collaborative capacity will be critical for innovation. This is a bold and timely departure from the traditional view.