Innovation Strategy is a part of Innovation Economics, which is a growing doctrine that posits that the core assets of wealth creation are not land, labor and capital, as classical economics believes, but rather knowledge, technology, entrepreneurship, and innovation.

Innovation strategy is based on two fundamental tenets:

  1. that the central goal of a firm’s strategy should be to maximize shareholder returns, and
  2. that this can most effectively be accomplished through greater innovation, and maintaining a positive competitive advantage (Delta-V).

Thus the most desirable competitive positions are ones of market leadership and in extreme cases Customer Lock-In.

Posted in: Glossary