Innovation process model: An integration of innovation costs, benefits and core competence

Abstract

Innovation has been cited as the single most critical source of competitive advantage and enables firms to respond creatively to competitive threats and opportunities. That notwithstanding, innovation process has not been well developed and understood. This study aims at addressing this gap by scrutinizing four questions: (1) What costs need to be considered in innovation? (2) Under which innovation process model are the costs considered? (3) What benefits are available? and (4) What competencies are required for innovation? Answers to these questions will provide a valuable insight and a better understanding for successful innovation process. To achieve this, the paper proposes a framework to integratively map innovation stages, costs, benefits, and core competence for successful innovation to build sustainable competitive advantage. This study submits that until the costs, benefits and competencies for innovation are considered integratively, and mapped onto innovation stages, innovation and competitive advantage will suffer the consequence thereof.