How do organisations manage to develop collaborative innovation? The case of the tactical strike and reconnaissance aircraft (TSR-2)

Abstract

In the recent years, scholars reported many examples of successful com- panies that invented and commercialised new products and services by form- ing strategic alliances (Yasuda, 2005), licensing and patenting technology (Chesbrough, 2003), outsourcing knowledge (Chesbrough and Teece, 1996), and participating in collaborative networks (Nieto and Santamaria, 2007). Contrary to conventional approaches to innovation, these strategies do not rely exclusively on vertical integration, ownership and control, and are based on distinctive assumptions regarding the sources and processes supporting the development of innovations. Despite obvious conceptual and empirical dif- ferences, these approaches acknowledge that the various resources and tech- nology available outside the boundaries of the innovative organisation are likely to complement its own R&D assets and capabilities (Cohen, Levinthal, 1990). By accessing to a variety of external and internal sources of innovation that can be used in combination, these approaches contend that the innova- tive organisation is likely to improve its capacity to generate new ideas, incorporate them into new products and services, and capture value from their commercialisation (Chesbrough, Appleyard, 2007). In addition, these approaches consider innovation as a collaborative process (Lichtenthaler, 2011) involving a variety of private and public organisations and communi- ties (Cohendet, Amin, 2004) that create, share and disseminate various pieces of knowledge. Although the conceptualisation of innovation as a collaborative process has become increasingly popular in a number of indus- tries, we contend that the capabilities required to profit from these novel approaches to innovation remain unclear (Barbaroux, 2009). There is a gap in our understanding of how organisations manage to develop innovations by opening up R&D processes and establishing collaborations with external organisations and communities. We need to complement these perspectives by investigating the dimensions and capacities attached to collaborative innovation. This article addresses this research question by examining a historical case of innovation that occurred in the Defence sector. The case is concerned with the development of the first computerised Tactical Strike and Reconnais- sance aircraft (TSR-2) developed in the U.K. in the early 1960’s. Selecting a case from a traditional industry to elaborate on new approaches to innovation might seem, at first glance, incongruous. However, Defence-oriented organi- sations have a long-established experience in designing and adopting innova- tive approaches to R&D and project management. Yet, the adoption of novel approaches to innovation in the Defence sector has not been examined so fre- quently by scholars, with the notable exception of students of innovation in complex product systems (e.g., Gholz, 2003) and national systems of inno- vation (e.g., Ham, Mowery, 1998). The article begins by reviewing the literature elaborating on recent trends in innovation management (Lichtenthaler, 2011). The analysis of the litera- ture insists on the design-oriented and cultural issues the innovative firm must be capable to face so as to develop collaborative innovations. Then, we present the methodology used to address the research question, collect and analyse the data and organise the presentation of the findings. The latter indi- cate that the development of the TSR-2 aircraft and embedded components (e.g., engines, electronic devices) relied on specific designs, governance struc- ture and innovation culture. Building on these findings, we elaborate on a synthetic view of the dimensions and capacities involved in the development of collaborative innovation. We conclude this research by discussing its main implications and limitations.