Developing a decision making grid for selecting innovation strategies - the case of knowledge-based companies

Given the dynamic nature of contemporary markets and the importance of innovation driving new sources of revenue, it is essential for firms to manage innovation to gain an advantage. However, the innovation process is complex and presents multiple strategies for success with little support for managers in selecting the most appropriate strategy. In this paper, a decision making grid (DMG) was developed for selecting between four strategies of closed, open, incremental and radical innovation, based on two time-dependent indicators of Mean Time to Innovate (MTTI) and Mean Time between Innovations (MTBIs). The two indicators were defined, weighted, and allocated to the cells of DMG using a heuristic method. Questionnaire responses from 106 knowledge-based companies were received in 2018 and the firms were positioned in the developed DMG. The companies' strategies were determined as 31 firms with closed, 16 open, 14 incremental, and 10 radical innovation strategies. Five different combined strategies were used by 35 companies. The DMG can be used by a technology park or incubator to assess and support companies or by managers seeking to enhance their innovation strategies.