Managing Innovation in a Publicly-funded Organization : The Innovator’s Perspective

Being a key driver of sustainable competitive advantage, innovation is also a key challenge. Developing and managing innovation is a complex and formidable task. Researchers have long sought to explain why some organizations innovate more than others and have identified strategic orientation and social capital, investment in R&D, development of knowledge and competencies and organizational size among the main determinants of innovation. Previous research has also suggested that high-performing innovative organizations are characterized by strong culture and leadership. This empirical paper investigates the management of innovation in an intermediary organization established as a key part of delivering UK Government objectives through using science in a novel way to come up with answers to specific customer problems and requirements. The study employed structured interviews with section managers and research staff within this publically funded R&D organisation to gain deep understanding of the perspective of engineers, scientists and managers. The research findings identified a set of management deficiencies pertaining to the implementation of strategy for innovation, including inappropriate organizational structure, control systems and compensation policies. The findings were used to develop practical recommendations for improving the organization’s performance and directions for future research.