International Business Quarterly: New Models for Commercial Innovation
January 13, 2014
Innovative products – such as 3D printing, wireless communications, breakthrough medicines, and more – capture the imagination of the public and of policymakers and have long represented the core focus of private sector research and development. But a recent survey of business leaders indicates that the development of new business models, which arise from the interplay of people, technology, and commerce, will play an increasingly important role in company performance.
Novel products deserve attention, but it is rare for any product to achieve instant, effortless acceptance by consumers. For many advanced products, innovation is much deeper than invention itself. Developing the product is only the first step: effort and know-how are required to produce the good, as well as to commercialize the product so that it reaches the people where it can have the most impact. This downstream innovation, which requires deep understanding of consumers and market conditions, often determines success or failure of the original invention.