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Design and radical innovation: a strategic perspective based upon a comparative case study between emergent and traditional industries in Portugal

Abstract

The survival challenge faced by the Portuguese companies nowadays has promoted Innovation as the main management strategy to be applied. This research reveals the importance and the role of Design as the basic and integrative tool for the success of this strategy, focused on Radical or Breakthrough Innovation. The main contribution of this paper is the proposal of a conceptual model developed from a comparative case study research, made among Portuguese companies from the emergent sectors connected to new technologies and Portuguese companies from the traditional sectors. That work allowed the definition of the Success Critical Factors to consider for the development of radical new products: integrating new technologies (Science Knowledge), market sensibility (Marketing Knowledge), forecasting new needs or user interfaces and disruptive creativity (Design Knowledge).

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Design and radical innovation: a strategic perspective based upon a comparative case study between emergent and traditional industries in Portugal

Author: Mateus, Américo; Sousa, António João de
Publisher: Universidad de Sevilla
Year: 2005
Source: https://idus.us.es/bitstreams/2e2c64ed-0f22-43f6-8473-8b0d988f3a70/download
215
DESIGN AND RADICAL INNOVATION: A STRATEGIC PERSPECTIVE
BASED UPON A COMPARATIVE CASE STUDY BETWEEN EMERGENT AND
TRADITIONAL INDUSTRIES IN PORTUGAL
Amé ico Ma eus
An ónio João de Sousa
ABSTRACT
The su i al challenge aced by he Po uguese companies nowadays has p omo ed Inno a ion as he
main managemen s a egy o be applied. This esea ch e eals he impo ance and he ole o Design
as he basic and in eg a i e ool o he success o his s a egy, ocused on Radical o B eak h ough
Inno a ion. The main con ibu ion o his pape is he p oposal o a concep ual model de eloped om
a compa a i e case s udy esea ch, made among Po uguese companies om he eme gen sec o s
connec ed o new echnologies and Po uguese companies om he adi ional sec o s. Tha wo k
allowed he de ini ion o he Success C i ical Fac o s o conside o he de elopmen o adical new
p oduc s: in eg a ing new echnologies (Science Knowledge), ma ke sensibili y (Ma ke ing
Knowledge), o ecas ing new needs o use in e aces and dis up i e c ea i i y (Design Knowledge).
KEYWORDS: Radical Inno a ion, Design, S a egy, Eme gen Indus ies, T adi ional Indus ies.
1. INTRODUCTORY NOTE
This pape in ended o gi e an ac ual o e iew abou Design, S a egy and Inno a ion in Po ugal. The ocus is
on p oblems aced by Po uguese companies, causes and changing o ces. A compa a i e s udy be ween
Eme gen and T adi ional indus ies is made in o de o poin ou new pe spec i es on he need o adical
changes on s a egy le el and c i ical ac o s o sucess in o de o succeed in he in e na ional ma ke .
2. CONCEPTUAL FRAME
2.1 FROM A PERSPECTIVE OF MANAGEMENT
S a egic managemen can be summed up as he way any gi en en i y is o ganized and how i in e ac s wi h i s
su oundings, aking in o conside a ion a gi en compe i i e con ex and ma ke dynamics. We will y o
unde s and he cu en con ex ha condi ions and is e lec ed on managemen schools and p ac ices, ega ding
inno a ion policies and he ole o design.
Genelo (1998) claims ha co po a e managemen has ollowed a pa h based on he planning and se ing o
goals, eso ing o he sepa a ion o basic asks acco ding o coo dina ed pa e ns ollowing he p inciples o
obedience, op imisa ion o o ganiza ions and s uc u es, aking in o conside a ion he cen aliza ion on economic
goals.
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216
In he p esen social and economic momen , he a o emen ioned concep s canno be adap ed o he economies o
di e si ica ion and elaxa ion, as eali y equi es eno mous changes pe aining o he concep ion o managemen
models, because he classic o ganiza ion models ail o mee he equi emen s o an a mosphe e ma ked by
u bulence, change and unp edic abili y (To le , 1981).
Companies a e hen con on ed wi h a need o handle he unp edic able and uns able as well as he possibili y o
explo e he c ea i e po en ial p esen ed by complexi y (S acey, 1993; Nonaka, 1991).
This new eali y e olu ionizes he concep ual model. One mus ace a b eak om he pas and lack o e iciency
o classic s a egic planning. Min zbe g (1994) is qui e bi ing when a acking s a egic planning: « he bene i s o
a o mal plan do no ou weigh i s ha m ul side o he s a egic de elopmen , because i sepa a es he
insepa able, mixes global wi h he sum o he pa s and p ede e mines he unp edic able».
The dominan leade ship logic o a company is s ill based on con o mi y: leading based on es ima ions,
espec ing p e-de ined plans, using ied-and- es ed me hods looking o o de and s abili y o guidance o
educing cos s and imp o ing p ocesses (Zo inho e al, 2003), conside ing ha he cu en challenges he
companies ace, a e insu icien , namely in he ea men o he un o eseen and o ins abili y, which should be
handled by a logic o inno a ion and eac ion. The su i al/ex inc ion o companies is di ec ly dependen on
adjus ing quickly and con inuously. The balance be ween e olu ion and ins abili y, be ween diso de and o de ,
mus be ound in a way whe e inno a ion ou weighs he cons uc i e logic, inno a ion is c ea i e des uc ion as
Joseph Shumpe e says (1976).
F om his poin o iew, a success ul company is iden i ied as a sys em wo king in “scien i ic chaos”. I
gene a es ins abili y, e en when he su oundings do no a ec i : «I s ela ion wi h he su oundings is no a
simple one o adap ing o p o-ac ing, bu undamen ally, one o c ea i e in e ac ion, in he sense o posi i ely
explo ing, in eal ime, he ins abili y in o de o gene a e a ie y and de elop new o ien a ions capable o
ans o ming hei own su oundings. The e o e, ins abili y is a om being an enemy o success, i is
conside ed i al o he company o emain inno a i e.» (Sousa, 2000).
The ecogni ion o he indi idual’s key ole measu ed by c i e ia o compe ence, mo i a ion, aining,
esponsibili y, poly alence, eam-wo k abili ies and building o ne wo ks, has made human esou ces a key o
he de elopmen and con inui y in he o ganiza ions.
Companies become lea ning companies, as hey ocus hei a en ion on O ganiza ional lea ning, knowledge
managemen , gea ed owa ds lea ning, knowledge, and upda ing, enewing and consolida ing knowledge i sel .
This knowledge socie y b ings ano he ype o wo ke , he “knowledge wo ke ”, as Pe e D ucke has named
hem (1998). These a e highly ained people who lea n and inc ease hei knowledge cons an ly and can use ha
same knowledge (Sousa, 2000).
This way, he weal h-gene a ing sou ce is s ongly linked o imma e ial in es men s such as specializing
compe ences and alo ising human esou ces. Managing his ac o s and a icula ing and in eg a ing hem wi h
new echnologies becomes c ucial in co po a e pe o mance « he managemen pa adigm has e ol ed; i wen
om a ma e ial esou ces-cen ed logic o an imma e ial esou ce-cen ed one» (Sousa, 2000).
This new Managemen pa adigm: he inc ease in le els o complexi y and unce ain y in he su ounding
en i onmen ; dynamics o change and echnical and echnological e olu ion, b ough abou an inno a ion in
NOTES ON STRATEGY, PLANNING AND INTERNATIONALIZATION
217
co po a e heo ies and p ac ices, anging om simple adap a ions o he su oundings o ac ing on he
su oundings and changing hem (Sousa, 2000). In his book “s a egy sa a i”, Min zbe g o ganizes i in 10
sepa a e schools as we can see on Table 1.
Recen ly, Min zbe g s a ed ha : «managemen is a p ac ice ha combines A , C a and Science. A
encou ages c ea i i y, esul ing in insigh s and ision. Science p o ides o de , h ough sys ema ic analyses and
assessmen s, and c a makes connec ions, building on angible expe iences» (2004), as shown in Table 2.
The e o e, while science is deduc i e, a is induc i e and c a is in e ac i e. This is o ally e ealed in he way
each app oaches s a egy, being a p ocess o isioning (in a ), planning (in science) and en u ing (in c a ).
This app oach a ose agains he he oic s yleo managemen , whe e he wo k o sel p o i ega ded only he
sha eholde ´s income - “ he esul is a co up ion o he e y essence o co po a e leade ship, which has become
mo e a means o ge ahead pe sonally han o make an o ganiza ion a be e place. This may sound s ong, bu
cu en p ac ices in execu i e compensa ion, manipula ion o inancial s a emen s, casual dismissals o human
esou ces a he d op o sha e p ice, and he cash in and un ac ics o many o oday chie execu i es indica e
ha we a e in a c isis o co po a e leade ship” (Min zbe g, 2004). This ep esen s one o he ypes o
unbalanced s yle o managemen , oge he wi h na cissis ic s yle (a he pole o a ), edious s yle (a he pole o
c a ) and calcula ing s yle (a he pole o science). Min zbe g hen sugges s h ee unc ional s yles: isiona y
(“a is ic bu oo ed in expe ience and supo ed by a ce ain le el o analysis, common among success ul
en epeneu s”); p oblem sol ing (“combines c a wi h science, can be signi ican ly analy ic bu is also oo ed
in expe ience and depended on a ce ain capabili y o insigh ”) and people o ien a ed o engaging s yle
(“p ac iced by manage s who do a good deal o coaching and acili a ing, being mos ly c a bu wi h enough
hea o make i in e es ing and enough science o amke i iable”).
No sd om and Ridde s ale (2004) call his new need o e iewing he alues “Capi alism wi h cause”, whe e
companies need o e- ind hemsel es and need o be managed as a cause and a pu pose o being in business.
The eme ging eali y is o cing us do a e-examina ion o company cen ic alue c ea ion adi ional sys em.
Consume s ha e mo e choices ha yield less alue – a pa adox o ou p esen economy. The changing ole o he
consume allowed a new ame o e e ence o alue c ea ion, based on he co-c ea ion o alue.
Se e al changes happened in he ole o he consume : om isola ed o connec ed, om unawa e o in o med,
om passi e o ac i e. The impac o he connec ed, ac i e and in o med consume e olu ionizes eme ging and
exis ing ma ke s, changing he In o ma ion access, expe imen a ion, ac i ism, he Global iew, he Ne wo king
and gene a ing “Thema ic consume communi ies” (in which ideas and eelings a e sha ed by indi iduals in spi e
o hei geog aphic o social ba ie s).
All hese changes a ec he way companies design p oduc s, de elop p oduc ion p ocesses, c a ma ke ing
messages and con ol sales channels wi h li le o no in e e ence om consume s. Consume s now seek o
exe cise hei in luence in e e y pa o he business sys em.
Consume s now ha e he ools and he in e es o in e ac ing wi h en e p ises and co-c ea e alue. The main
suppo o co-c ea ion is in e ac ion, conside ing he eme ging eali y (P ahalad, 2004, Pe e s, 2003).
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Table 1: Min zbe g 10 Schools o Managemen ocusing on he classical e sus eme gen g oups.
Sou ce: Sousa (2000) based on Min zbe g.
Table 2 : Min zbe g Manage ial s yle T iangle
Sou ce:Min zbe g 2004 Th ee Poles Managing Cha
GROUPS OF SCHOOLS SCHOOLS STRATEGY CONSTRUCTION
P esc ip i e o Racionalis
Schools
Concep ion o Design” Concep ual
Planning Fo mal
Posi ioning Analy ic
Desc ip i e o p ocess Schools En ep eneu Visiona y
Cogni i e Men al
Lea ning Eme gen e
Powe Poli ics
Cul u al Ideological
En i onmen al Reac i e
Con igu a ion
T ans o ma ional
NOTES ON STRATEGY, PLANNING AND INTERNATIONALIZATION
219
2.2 FROM A PERSPECTIVE OF INNOVATION
To inno a e is simply o do hings di e en ly, based on he alue o ideas, in he ecogni ion o new
oppo uni ies and in he abili y o implemen hem. As shown on able 3, inno a ion can be ela ed o
Min zbe g´s h ee poles app oach. In o de o achie e dis inc i e inno a ion i is impo an o e alua e he
balance be ween he a ailable Skills, he po en ial gene a ing Knowledge and he eme ging C ea i i y. I is a
balance among expe ience, echnology and inspi a ional inno a ion. This cha also shows he ela ions be ween
he unbalanced s a egies o inno a ion, being “ oo Risky”, “ oo No mal” and “ oo Visiona y”.
The main ocus o his a icle will be Radical Inno a ion as a s a egic pa h o c ea e dis inc i e alues o
companies. Radical Inno a ion linked o he s a egic componen o business model is cu en ly conside ed as a
main poin , especially in Po ugal, owa ds changing he image o Inno a ion.
One o he main au ho s o his Radical Inno a ion heo y is Hamel (2002). This au ho claims ha e en
manage s s ill ha e a es ic ed iew o inno a ion Acco ding o Hamel, «Radical Inno a ion equi es o escape
he shackles o p eceden and imagine en i ely no el solu ions o cus ome needs and d ama ically mo e cos -
e ec i e ways o mee ing hose needs».
Things ha can' go on o e e don' go on o e e , o mo e o wa d, he only weapon is sys emic, adical
inno a ion. In hese suddenly sobe imes, he inescapable impe a i e o e e y o ganiza ion mus be o make
inno a ion a capabili y p esen any ime, anywhe e.
Radical Inno a ion is also he way o g ow oday, cus ome s will always make oom o some hing new, use ul,
and alue packed, «bu only i you b ing some hing unexpec ed and exci ing o you cus ome s». I 's no
impossible o cha ge people a p emium p ice o some hing hey lo e.
A adical idea is one ha mee s one o mo e o he ollowing h ee s anda ds: «A adical idea has he powe o
change cus ome expec a ions, changes he basis o compe i ion, is one ha has he powe o change indus y
economics».
Inno a ion ypically comes om looking a he wo ld h ough a ou sligh ly di e en lens. «Radical inno a o s
challenge he dogmas and he o hodoxies o he incumben s, spo he ends ha a e al eady changing bu ha e
gone unno iced, lea n o li e inside he cus ome 's skin and hink o hei companies as po olios o asse s and
compe encies».
The o ganiza ions mus p o ide he igh en i onmen o achie e sys emic inno a ion ha is o c ea e a p ocess
whe e pee s, no by he hie a chy, can alida e new ideas. The goal is o build sys ems ha mimic he
ma ke place, whe e ideas, alen , and capi al can ind one ano he quickly.
The only limi o Radical inno a ion is imagina ion, o ganiza ions mus also lea n o d eam, be ambi ious, ha e
he capabili y o sel - enewal and e-in en (Pe e s, 2003) hemsel es and he indus ies ha hey compe e.

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Table 3 : Au ho s ision on Inno a ion/S a egy
Sou ce: Adap ed om Min zbe g (2004) Th ee Poles Managing Cha
2.3 FROM A PERSPECTIVE OF STRATEGIC DESIGN
Design is simply “making Sense o Things” (K ippendo , 1989). The ole o Design inside an o ganiza ion is o
ma e ialize he essence o companies, allowing i s message and a i ude o “make sense” o any ecei e ; i s
i ues may be in he c ea ion o he b and, in he communica ion ma e ial, in he goods o se ices used o ace
he ma ke , and should embody all he echnical and echnological i ues o he social and cul u al uni e se o
he company’s in e ac ion wi h he consume s (Deganello, 2003).
The e is a s a egic ( he de ini ion and c ea ion o he way in which a company should communica e and ela e o
i s su oundings and po en ial clien s) and a ac ical ( he implemen a ion o he de ined s a egies) side o his
in e en ion, as well as an ope a ional le el o ca ying ou asks (Go b, 1990). Recen heo ies y o ell you
how consume -o ien ed35 Design ies o c ea e p oduc s adap ed o eal – o some ex en s ill uniden i ied –
needs, and hus become a sou ce o inno a ion and compe i i eness o companies (Vinye s, 2003). The
consume is s udied h ough he obse a ion o he di e en dimensions: he physical one o s udy he
manipula ion, use and access o objec s in ela ion o he use , he cogni i e one in o de o unde s and he use ’s
comp ehension and in e p e a ion ega ding he cogni i e sys em; he social one o asce ain he social adequacy
and cul u al one o unde s and he adjus men o he goods and hei alue o people and cul u e.
This me hod has been e ol ing, and e e ence companies such as Ideo Design and Fi ch & Doubling a e using i
as an in es iga ion echnique and me hod o conduc inno a i e p ojec s in he a ea o indus ial design and his
expe imen enables hem o upg ade he in e en ion design has o a mo e s a egic le el o he companies’ co e
35 Based on he s udy o human ac o s wi h ools om social sciences and using he e hnog aphic me hod.
NOTES ON STRATEGY, PLANNING AND INTERNATIONALIZATION
221
business. The knowledge and conc e e and bi-di ec ional ela ionship wi h clien s is cu en ly one o he main
asse s o he success o companies.
3. EMPIRICAL APPROACH: CURRENT PORTUGUESE REALITY
3.1 ORGANIZATION AND MANAGEMENT
Mos Po uguese companies a e SMEs and a e s ill gea ed owa ds he mo e classical o ganiza ion p ocesses,
namely ocused on one issue: sho e m inancial issues (no mally hei one s a egic plan); cen alizing
esou ces o educe p oduc ion cos s; imp o ing p oduc ion p ocesses; and he classic iew o cus ome ela ions
s emming om se e al yea s o ien ed owa ds sub-con ac ing. These a e amily- ype ope a ions and he
co po a e ision is con used wi h ha o i s head in a monoli hic and hie a chical o ganiza ion. The academic
aining o he manage s is s ill qui e low. These companies a e closed o p e en compe i ion and p ese e he
compe i i e edge. Mos o hem will copy om o he companies o in oduce mino imp o emen s o de elop
new p oduc s, as he managemen examples connec ed wi h inno a ion a e ound in mul i-na ional co po a ions.
A ecen s udy36 showed ha he managemen model o companies in Po ugal is ou da ed because i is
essen ially based on inancial indica o s. This s udy highligh s he ac ha , conce ning co po a e p oduc i i y,
ha he manage s men ion – due o hei impo ance – 43 sepa a e inancial indica o s, and no a single one in he
a ea o inno a ion and lea ning. The second and hi d mos men ioned indica o s a e in e nal p ocesses, namely
s ock o a ion (28 imes) and cus ome sa is ac ion (4 imes). The e a e 3 indica o s o asce ain he s ock o a ion
and employee sa is ac ion, bu inno a ion and lea ning a e ne e men ioned. The laws in he managemen
model a e iden i ied, bu he manage s canno implemen he necessa y measu es o change i .
App oxima ely 73% o he subjec s o he s udy say hey ha e a s a egic plan, bu ga e a ime-line o 3 yea s;
less han 50% say hey ha e a o mal and sha ed ision and 63% say hey ha e iden i ied hei mission, bu only
55% can o malize i . Howe e , h ough pe sonal in e iews, i was possible o asce ain ha in mos cases he
s a egic plan is no mo e han a 3-yea budge . Ne e heless, he s udy concluded ha he manage s acknowledge
ha he compe i i e abili ies o domes ic companies is no longe dependan on he le el o echnological
inno a ion o equipmen s and p oduc ion p ocesses, bu on he abili y o maximize and exploi una ainable
ac o s in each o ganiza ion.
The Po uguese co po a e ab ic will ha e o bea s uc u al obs acles o he le el o co po a e lea ning ela ed o
he success/ amily adi ion, igidi y, hype -s abili y, con ol o in ospec ion and hype -con idence. Ca nei o
(2003) es ablished a pa allel be ween Min zbe g’s37 con igu a ions and some lea ning ypologies and he in e s
ha he co po a e s uc u e has an ini ially high lea ning po en ial, whe eas he machine-s uc u e has a low one.
The e a e no ele an inno a i e s uc u es in Po ugal, which a e he ones wi h maximum lea ning. Wha ew
he e may exis a e small in size and a e in specialized a eas connec ed wi h Design connec ed o ew eme gen
indus ies. The ollowing able shows he main cha ac e is ics ha dis inguish adi ional om eme gen
companies:
36 held in 2004 by Ac i e Managemen G oup wi h 80 companies ac i e in Po ugal.
37 10 ypes: En e p ising, Machine, P o essional, Di e si ied, Inno a i e, Missiona y, Poli ical, o Ne wo king (complex and polymo ph).
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Table 4– Dominan concep s and pa ame e s: adi ional Vs eme ging indus ies
TRADITIONAL INDUSTRIES EMERGING INDUSTRIES
Mainly SME Mic o-companies
Family Spin-o s
S a egic planning S a egic managemen
Manage En ep eneu
Low academic aining Highe academic aining
Focus on in. indica o s Focus on inno a ion
In e nal p ocesses – angible Fac o s C ea ion o alue - in angible Fac o s
Indi idualis Ne wo k coope a ion
In e nal ma ke Global ma ke
Machine Lea ning
Sou ce: au ho ’s cha based on Sousa, 2000
3.2 ECONOMIC AND COMPETITIVE CONTEXT
Po ugal is going h ough a ime o s ong economic ecession, especially due o he slowing down and
con ac ion o in e nal demand. The Banco de Po ugal expec s a dec ease in GNP om 1% o 0 %.
Unemploymen inc eased and public expendi u e is s ill he go e nmen ’s g ea es conce n, which ies o keep i
wi hin he limi s o he SGP. In a way he go e nmen has changed ack and inse ed a posi i e no e o economic
eco e y, despi e he pessimis ic ou look mos Po uguese ha e. «One o he main p oblems38 aced by Po ugal
is he ac ha i is no longe a coun y wi h cheap labou , bu i is no ye and a ac i e coun y whe e human
esou ces a e conce ned, as wo ke s lack skills and inno a i e dynamics» (Simões, 2003).
Acco ding o Simões, o he p oblems Po ugal aces a e: insu icien in e nal inno a ion dynamics (shown in he
Inno a ion Sco eboa d); limi ed skills and limi ed s a in key a eas; “deple ion” o inancial incen i es as a
compensa ion o weaknesses; and inc eased compe i ion om CCEEs, namely Hunga y, Poland and Czech
Republic, abou o join he EU and u u e ecei e s o many communi y unds o s eng hen hei po en ial o
a ac ion. Howe e , he e a e posi i e aspec s and s onge poin s ha mus be highligh ed, namely: aking pa
in he EU and EMU, he employmen a mosphe e, he wo ke s’ lexibili y and abili y o lea n, quali y o li e and
secu i y.
NOTES ON STRATEGY, PLANNING AND INTERNATIONALIZATION
223
3.3 INNOVATION CONTEXT
Inno a ion is a e y ashionable wo d wi h Po uguese manage s and en ep eneu s, as “quali y” and
“excellence” we e in he 80s and 90s. Inno a ion is s ill seen as an expe a ea, i.e., i has no become an inside
conce n o companies, one o which all wo ke s a e esponsible. I is s ill linked o shee c ea i i y o which
only a ew o he company’s b ains a e esponsible. Po ugal spo s a ew cases o wo ld-wide ecogni ion o
inno a ion, as a e Via-Ve de, SIBS’s Mul ibanco o TMN’s p e-paid phone ca ds o mobile phones. I ,
howe e , we look a he s a is ics on inno a ion, Po ugal is a om he Eu opean a e age. 200339 indica o s
om Inno a ion Sco eboa d, show Po ugal as being s ill in i s emb yo s age whe e inno a ion is conce ned: we
a e EU’s second lowes coun y when i comes o I&D; he numbe o pa en s egis e ed is below he Eu opean
a e age. I on he one hand he si e is bleak, i is also encou aging, and an oppo uni y o make hings happen.
The e a e se e al easons o ou ank: we a e a coun y o in en o s (one o he coun ies wo ldwide wi h mos
awa ds) bu no inno a o s (F ei e, 2000). Po ugal was elimina ed om he lis o he las edi ion o Global
En ep eneu ship Moni o ( ocusing on he en ep eneu ial ini ia i e le els in 29 coun ies), because ou le els
we e minu e compa ed o he Eu opean a e age. In ac , he o igin o he p oblem is o con use c ea i i y wi h
inno a ion. The o me is a human ai , s emming om hough s ha gene a e new ideas, whe eas he la e is a
“p ocess o c ea ion and in oduc ion o some hing new in o he o ganiza ion o in o he ma ke 40.”(F ei e, 2000).
Howe e , he main obs acles ha hinde co po a e inno a ion in Po ugal a e he s uc u es e y ocused on Co e
business, he manage s’ men ali y no open o change, educed co po a e aining, lack o in e nal ools and
p ocesses, cul u e and alues ha a e a aid o aking isks, lack o co po a e coope a ion, no sha ing o
expe ience and knowledge and minu e connec ion o scien i ic knowledge, namely o uni e si ies, who also
esea ch cen es no in une wi h he needs o he indus y (Cos a, 2004).
In he las decade, he e was majo ocus on p ocess inno a ion, as i was necessa y o enew he p oduc ion
p ocesses and imp o e quali y, due o he subsidia y and communi y angle o he in es men s. The Po uguese
leade s in inno a ion a e some majo companies in he adi ional sec o o mic o-companies in he eme ging
segmen . These a e al eady bo n in inno a ion cen es41. This happens because hus a inno a ion has no been a
s a egic p io i y o mos companies, especially o SMEs.
Wi hin he adi ional sec o s, inno a ion in he c ea ion o new goods and se ices is eme ging in speci ic
sec o s, such as elecommunica ions, s ock ma ke , co k, oo wea , ex ile and some ood a eas, while in he
eme ging sec o s i is ela ed o companies ha p oduce echnological de elopmen , namely so wa e, d ugs,
bio echnology and elecommunica ions. A g ea e ocus has been pu on he ecip oci y be ween
b and/inno a ion, as he b and lends c edibili y o he inno a ion and he inno a ion eeds he e ec o he b and
(F ei e, 2004). In Po ugal he domes ic consume s a e no ye so ac i e ha hey appeal o inno a ion, because
hey a e no demanding, se le easily and ha e li le ela ionships wi h companies. The ecession made manage s
39 These indica o s a e di ided in o g oups acco ding o indica o s ela ed wi h human esou ces, knowledge c ea ion, knowledge
ansmission and applica ion and inancial inno a ion, p oduc inno a ion o ma ke inno a ion.
40 C ea i i y is indeed a necessa y condi ion o inno a ion bu i is no an enough condi ion o inno a ion. I is impo an o b ing oge he
he inno a o s ( ein o cing hei comme cial compe ences) and he Po uguese companies ( h ough a cul u e wide open o in e nal and
ex e nal inno a ion p oposals), in o de o be able o g ow om a sus ained o m o c ea i i y owa ds in en ion, accomplishing a success ul
inno a ion con inuously.