Showing papers in "International Journal of Innovation Management in 2009"
TL;DR: In this paper, the authors systematically examine the six principles of the open innovation concept and show how the Open Innovation paradigm has created a partial perception by describing something which is undoubtedly true in itself (the limitations of closed innovation principles), but false in conveying the wrong impression that firms today follow these principles.
Abstract: The concept of 'open innovation' has received a considerable amount of coverage within the academic literature and beyond. Much of this seems to have been without much critical analysis of the evidence. In this paper, we show how Chesbrough creates a false dichotomy by arguing that open innovation is the only alternative to a closed innovation model. We systematically examine the six principles of the open innovation concept and show how the Open Innovation paradigm has created a partial perception by describing something which is undoubtedly true in itself (the limitations of closed innovation principles), but false in conveying the wrong impression that firms today follow these principles. We hope that our examination and scrutiny of the 'open innovation' concept contributes to the debate on innovation management and helps enrich our understanding.
477 citations
TL;DR: In this paper, a generic model termed the sustainability innovation cube (SIC) is presented for structuring innovations' sustainability effects in order to better inform corporate decision-makers about how to minimize the directional risk of SOI.
Abstract: Corporations increasingly subscribe to the principles of corporate sustainability, which is generally described as the integration of economic, environmental and social dimensions. Concerning innovation management, this emphasises the role of sustainability-oriented innovations (SOI). SOI is considered a tool both to address sustainability issues and to tap into new customer segments and markets. Yet SOI are very risky: both their market success and non-economic sustainability are uncertain. This paper presents a generic model termed the "Sustainability Innovation Cube" (SIC) for structuring innovations' sustainability effects in order to better inform corporate decision-makers about how to minimize the directional risk of SOI. The model includes the three dimensions: target, life cycle and innovation type. A qualitative expert study reveals the opportunities and challenges related to the developed model. Finally, practical implications are derived, limitations are discussed and a brief outlook is given.
410 citations
TL;DR: In this article, the authors integrate conceptual and empirical studies about open innovation modes by suggesting a framework which reveals four basic ways to collaborate, starting from the several conceptual, empirical, and experimental studies.
Abstract: Starting from the several conceptual and empirical studies about open innovation modes, this paper attempts to integrate them by suggesting a framework which reveals four basic ways to collaborate....
241 citations
TL;DR: In this article, the authors investigate the relationship between external knowledge and performance of technology innovation and identify three ways of external knowledge sourcing: information transfer from informal network, R&D collaboration and technology acquisition.
Abstract: In the era of "open innovation", external knowledge is a very important source for technology innovation. In this paper, we investigate the relationship between external knowledge and performance of technology innovation. The effect of external knowledge on the performance of technology innovation can vary with different external knowledge sourcing methods. We identify three ways of external knowledge sourcing: information transfer from informal network, R&D collaboration and technology acquisition. We propose three hypotheses to examine relationship between the three methods of external knowledge sourcing and the technology innovation performance. Our results show that information transfer from informal network and technology acquisition have positive relationships with the technology innovation performance. R&D collaboration, however, has an inverted-U-shape relationship with technology innovation performance. This implies that the effect of external knowledge on technology innovation varies depending o...
189 citations
TL;DR: In this paper, the authors test for the significance of interaction effects between open innovation strategies and absorptive capacity, finding support for the idea that effective knowledge absorption capabilities are of vital importance in the facilitation of innovation effectiveness.
Abstract: The open innovation approach emphasizes porous knowledge boundaries between firms and upstream suppliers, but tends to ignore questions of transformative efficiency and effectiveness once the knowledge reaches the focal organization. In this paper, we test for the significance of interaction effects between open innovation strategies and absorptive capacity, finding support for the idea that effective knowledge absorption capabilities are of vital importance in the facilitation of innovation effectiveness.
142 citations
TL;DR: It is shown that orchestration capability consists of both organizational and individual level determinants, and mechanisms suggesting that the two levels are interconnected in several ways.
Abstract: This paper explores orchestration capability as a concept defining the firm's ability to purposefully build and manage innovation networks. Due to the lack of empirical research on the subject as well as the focus on the organizational level in earlier studies, we approach the issue from a multi-level perspective. By utilizing expert panel discussions and an in-depth case study in an innovation network, we show that orchestration capability consists of both organizational and individual level determinants. Distinct capabilities and skills are identified and illustrated. Furthermore, we identify mechanisms suggesting that the two levels are interconnected in several ways.
115 citations
TL;DR: In this paper, the authors explore the challenge of public services and argue that there is a need for new approaches to the ways which engage users as more active co-creators within the innovation process.
Abstract: This paper looks at the management of service innovation. In particular, it explores the challenge of public services and argues that there is a need for new approaches to the ways which engage users as more active co-creators within the innovation process. It draws on wider research on radical innovation being carried out as part of a long-term international programme and reports on a series of case studies of experiments in the health sector in the UK using tools like ethnography and prototyping to enable innovation. The paper argues that a potentially valuable toolkit can be found in the field of design methods. By their nature, design tools are used to help articulate needs and give them shape and form; as such they are critical to the "front end" of any innovation process. Methods like ethnography allow for deep insights into user needs, including those not clearly articulated whilst prototyping provides the possibility of creating a set of "boundary objects" around which design discussions which include users and their perspectives can be carried out.
110 citations
TL;DR: In this paper, the authors present a longitudinal analysis of the adoption of open innovation strategies in the Dutch community and show that this paradigm shift tends to occur in shocks instead of manifesting itself as a continuous process over time.
Abstract: The purpose of this paper is to contribute to a more dynamic perspective on open innovation by conducting a longitudinal analysis of the adoption of open innovation strategies. In order to do so, we rely on three comparable waves of the Dutch Community Innovation Survey, which were conducted in 1996, 2000 and 2004. The contributions of this study are twofold. First, this study is to our knowledge the first one to explicitly provide large-scale evidence of a paradigm shift from a closed to an open innovation model is taking place. At the same time, we provide evidence that this paradigm shift tends to occur in shocks instead of manifesting itself as a continuous process over time. Moreover, we show that the timing of these shocks differs across industries. Second, this study supports the assumption that internal and external innovation strategies are complements instead of substitutes.
99 citations
TL;DR: In this article, the authors examine the protection available for and used by small firms in their innovation activities by conducting a review on the relevant literature and use a qualitative multiple case study conducted in eight small companies to empirically study the issue.
Abstract: The knowledge protection/sharing dilemma related to innovation activities is becoming known to all firms, even though it is generally more notable for SMEs: the small size of the firms inherently creates a need for inter-organizational collaboration, but it also makes dealing with the related contradictories more challenging. One factor behind this is that the needed tools — such as the protection mechanisms of intellectual assets — may be more limited. In line with this notion, we examine the protection available for and used by small firms in their innovation activities. We approach the issue by conducting a review on the relevant literature, and use a qualitative multiple case study conducted in eight small companies to empirically study the issue. Departing from prior research, we consider protection of innovations by distinguishing between the intangibles needed in innovation activities and the actual innovation outputs, and combine these considerations to the knowledge protection/sharing dilemma.
67 citations
TL;DR: In this paper, the authors examined the relationship between external relations and innovation in small, knowledge-intensive Norwegian firms and found that external relations are beneficial for innovation and that top management interaction with external R&D had a positive effect on product innovation.
Abstract: This paper examines the relationship between external relations and innovation in small, knowledge-intensive Norwegian firms. Our findings indicate that external relations are beneficial for innovation. The analysis shows that it is necessary to treat innovation as more than a concept. Our independent variables related differently to product innovation, process innovation, and market innovation. We found that market participation in product development has a positive impact on product, process and market innovation. We also found that top management interaction with other firms had a positive effect on market innovation and that top management interaction with external R&D had a positive effect on product innovation. This finding probably indicates that access to R&D resources is vital for product development in the context of knowledge-intensive products. The results also show that participation in conferences and courses positively influences process and market innovation and that systematic environmental scanning positively influences product innovation.
55 citations
TL;DR: In this paper, the authors focus on innovation capabilities in small enterprises and how their development can be supported by regional strategies, using case studies from four regions in Finland and draw a common framework for assessing how regional development efforts meet the needs of innovation development.
Abstract: This study focuses on innovation capabilities in small enterprises and how their development can be supported by regional strategies. The study utilizes multiple case studies. The empirical evidence is based on data from four regions in Finland. Each of them has adopted an industrial cluster approach as the basis of regional development. The study draws a common framework for assessing how regional development efforts meet the needs of innovation development in small enterprises. The findings demonstrate that most of the efforts for improving innovation capabilities of small enterprises are appropriate for innovation generation in the front-end phase. Instead, there were no significant efforts to support innovation adoption. Further, the highly conceptualised development services provided by a variety of public organizations meet the needs of large companies. However, these services match poorly with the nature of innovation development in small enterprises.
TL;DR: In this paper, the authors bring two widely utilised innovation management methods (scenarios and group decision support systems) to the open innovation context and suggest guidelines for the management of open innovation process in an interorganisational context.
Abstract: To be able to utilise opportunities in a radically changing business environment, various organisations are transforming their practices towards open innovation processes. Openness does not, however, mean any kind of looseness in innovation management but calls for coordination and facilitation. The challenge for the management in the open innovation process is to find out the appropriate methods and practices for the utilisation of external knowledge resources. One of the first attempts, this study brings two widely utilised innovation management methods — scenarios and the group decision support system (GDSS) — to the open innovation context and suggests guidelines for the management of the open innovation process in an inter-organisational context.
TL;DR: In this paper, the authors explored the challenges associated with the implementation of such organisational practices in the R&D department of a large telecommunication company, including sequential involvement of functions in the team, broken communication between different teams, management attitude to resource constraints, and short-term management focus on incremental innovation.
Abstract: The use of cross-functional teams increases creativity in new product development leading to shorter development time and higher product innovativeness. Research in new product development has identified a number of organisational practices associated with supporting organisational creativity in cross-functional teams including frequent and open communication, building organisational slack, attitude to risk and top management commitment. Using a single case study approach, this paper explores the challenges associated with the implementation of such organisational practices in the R&D department of a large telecommunication company. Challenges include sequential involvement of functions in the team, broken communication between different teams, management attitude to resource constraints, and short-term management focus on incremental innovation.
TL;DR: In this paper, the authors assess the relationship between organizational culture and new service development performance and find that there exist strongly complementary relationships among innovative supportive culture, market orientation culture, learning culture and customer communication culture.
Abstract: Current research on new service development (NSD) management has resulted in an impressive amount of literature on the success factors of new service development, but there is little literature on NSD organizational culture. The purpose of this study was to assess the relationship between organization culture and NSD performance. Data were collected via questionnaires through face-to-face interviews with KIBS managers knowledgeable about NSD in their organization (sample size 192). The set correlation analysis was chosen to assess and evaluate the relationship between organization culture and NSD performance. Research results indicate that there exist strongly complementary relationships among innovative supportive culture, market orientation culture, learning culture and customer communication culture. This study outlines that the NSD management should perform to foster the different NSD organizational culture together and thereby enhance the performance of new service development activities.
TL;DR: Views are presented on how to interconnect these processes characterised by divergent rhythms to develop solutions to satisfy the expressed and unexpressed needs of customers.
Abstract: This paper explores the kind of learning that creates capabilities needed in incremental and radical innovation development. The empirical evidence is based on four innovation-related development projects, implemented through enterprise-student team collaboration. It seems that the richness of innovation and learning processes affects the diverseness of developed capabilities. The goal of innovation development drives learning and capability building, while improved capabilities help adopt challenging goals that stimulate a new level of learning. The process emphasising analysis, planning and analytical knowledge creates capabilities resulting in incremental inventions. The innovation process that focuses on experimentation and utilisation of other knowledge types facilitates capability building resulting in inventions that are radical in nature. These two process types are not contrary but complementary options to develop solutions to satisfy the expressed and unexpressed needs of customers. This paper presents views on how to interconnect these processes characterised by divergent rhythms.
TL;DR: The empirical results show that the new product development process in the wine industry offers empirical insights that lead to a better understanding of the design-push approach; designing a new wine means not only to achieve new technical features but also to generate new product meanings.
Abstract: Since the beginning of the 1990s, innovation management literature has attempted to overcome some oversimplified dichotomies coming from well-established theories (e.g., open vs. closed, external vs. internal, cooperation vs. competition, knowledge vs. learning). The design-push approach to the study of new product development has demonstrated that technology-push and market-pull are not divorced, since each successful new product is based on improvements in both technological performance and semantic features, which together sustain the new products to act as text that helps people generate new meanings in their daily sense-making activities. In this explorative study, we try to verify the extension of the design-push approach from science-based and specialised supplier industries (e.g., optical instruments, electronics, furniture) to more traditional, supplier-dominated industries (in this case, the wine industry), where its use could be counterintuitive. We then explain new product development, moving from the integration of technological and semantic dimensions of new products. We present the results of eleven case studies of successful new product development processes developed by companies located in Italy, known as one of the most innovative wine-producing areas in Europe. We assume that product innovation in traditional industry is only incremental, since technologies, operations and marketing processes are expected to be stable and predictable. Nevertheless, the empirical results show that the new product development process in the wine industry offers empirical insights that lead to a better understanding of the design-push approach; designing a new wine means not only to achieve new technical features but also to generate new product meanings. Through the identification of practices enabling a coherent innovation of product functions and meanings, this empirical research allows the enrichment of the design driven model. The coherence between the technology, function, language and message of a new wine can be obtained with different practices and development paths: the integrated approach, the semantic-oriented approach and the function-oriented approach. Additionally, the network of actors that wine companies access changes according to the innovation approach they adopt.
TL;DR: In this article, the authors study the diffusion and practical use of PMSs in the R&D units of firms that are not subject to these types of external institutional influences.
Abstract: Although measuring the performance of a firm's R&D activities is a very challenging task, the critical role played by R&D in creating and sustaining a firm's competitive advantage has raised the need to adopt appropriate performance measurement systems (PMSs) in R&D units. Therefore, management scholars have been studying this issue and PMSs have diffused in the R&D departments of most R&D-intensive companies. Nevertheless, empirical investigations into the diffusion and practical use of PMSs in R&D units mainly concern Anglo-Saxon countries, where R&D information disclosure requirements have been in place for a long time. The purpose of this paper is to study the diffusion and practical use of PMSs in the R&D units of firms that are not subject to these types of external institutional influences. With this aim, the results of a survey on the R&D performance measurement practices adopted by a sample of Italian R&D-intensive firms are discussed. They allow to understand why and how R&D-intensive companies ...
TL;DR: In this article, the authors deal with the practice and requirements of strategic foresight in biotechnology firms and identify six different approaches of foresight for small and medium-sized enterprises.
Abstract: This paper deals with the practice and requirements of strategic foresight in biotechnology firms. Processes and the degree of method application of strategic foresight are less investigated in small- and medium-sized enterprises. Based on case study research of 30 biotechnology companies in Germany, six different approaches of strategic foresight are identified. The study shows how strategic foresight is organised, which methods for strategic foresight are implemented, who is responsible for strategic foresight, what the main characteristics of the different approaches are, and how the strengths and weaknesses of strategic foresight practice in biotechnology firms can be characterized. Furthermore, firms' requirements for suitable foresight processes and methods are identified within the scope of case study research.
TL;DR: In this article, a survey of R&D-oriented companies located in the two most developed areas of Russia (St Petersburg and Moscow) was conducted to identify the clusters of companies according to their exports and research expenditures, and fulfil in-depth analysis of innovations-related determinants that could explain the structure of the clusters.
Abstract: The number of Russian companies entering international markets has increased dramatically in the last 10 years The development of innovative industries has intensified as well Do innovations play significant role in internationalisation? Do innovators internationalize more actively? Does operating on international markets make companies more innovative? This paper studies innovations and internationalisation of companies in Russia, based on the survey of R&D-oriented companies located in the two most developed areas of Russia (St Petersburg and Moscow) The study aims to identify the clusters of companies according to their exports and R&D expenditures, and fulfil in-depth analysis of innovations-related determinants that could explain the structure of the clusters The main results of the study show the significant impact of innovation activities, competition and new product development on export intensity
TL;DR: This paper investigated the relationship between foreign competition and pioneering innovation and considered the moderating role of absorptive capacity for this relationship, using the Canadian Innovation Data, and found that when foreign competition increases from a low to a moderate level, the likelihood of pioneering innovation decreases.
Abstract: The relationship between competition and innovation has drawn great attention from economists and strategic management researchers. However, the empirical evidence for this relationship remains inconsistent. On the one hand, the Schumpeterian viewpoint credits that the large firms with substantial monopoly market power have resources and incentives to innovate. On the other hand, it is also possible for a monopolist to have incentives to suppress subsequent innovations. It is suggested by Baldwin and Scott (1987) and Tang (2006) that the relationship between competition and innovation is dependent on the competition context and specific type of innovation activities. In this study, we investigate the relationship between foreign competition and pioneering innovation and consider the moderating role of absorptive capacity for this relationship, using the Canadian Innovation Data. We find a U-shaped relationship between foreign competition and pioneering innovation: when foreign competition increases from a low to a moderate level, the likelihood of pioneering innovation decreases. However, the likelihood of pioneering innovation increases when foreign competition continues to increase from a moderate to a high level. We also found evidence that absorptive capacity may positively moderate the relationship between foreign competition and pioneering innovation.
TL;DR: In this paper, the authors introduce a framework for performance measurement for industrial research, and present a set of clusters, representing the content dimension for measuring research organizations, and evaluate the extent to which performance measurement in practice in different companies can be compared.
Abstract: In today's challenging economic climate it is more important than ever for companies to acquire comparable competitive advantage in their market. While previous research has investigated the performance measurement of R&D as a whole organization, very little research has been done into the performance management for just the research function itself. This, however, is of particular interest to larger organizations. This paper (1) introduces a framework for performance measurement for industrial research, and (2) presents a set of clusters, representing the content dimension for measuring research organizations. Based on the clusters, we were able to evaluate the extent to which performance measurement in practice in different companies can be compared. We discovered that the clusters follow a particular consistent distribution across organizations when the clusters are ranked by importance. For this empirical analysis, data was collected through in-depth case studies including more than 60 interviews and thorough document analyses.
TL;DR: In this paper, the authors examined how to structure resource-constrained innovation teams in order to maximize learning and creativity within organizations and found that hybrid group structures based on independent operating pairs can be as effective as nominal groups.
Abstract: This paper examines how to structure resource-constrained innovation teams in order to maximise learning and creativity within organisations. Past research suggest that nominal groups (based on independent operations by individuals) outperform interactive groups. The results of this study suggest hybrid group structures based on independent operating pairs can be as effective as nominal groups. The study segmented 672 business managers and university post-graduate students into nominal, hybrid and interactive groups of six members. Three groups (one of each structural type) were pitted against each other to solve 4 related puzzles as quickly as possible. The results of these 28 problem-solving task races were aggregated to determine which group structure was most productive. Overall, the results confirmed that nominal groups of six significantly outperform interactive groups of the same size. More importantly, however, the results showed no significant difference between the productivity of nominal groups of six and hybrid groups comprised of three interactive pairs, where each pair operated separately to complete the same puzzle in parallel with the rest of the group. This suggests that structuring innovation teams into networked, nominal pairs may be just as productive as purely nominal group structures. This significantly extends the existing research on nominal groups versus interactive groups as it suggests that completely eliminating interactivity is not the optimal management approach.
TL;DR: A frequency-based analysis and visualization software (STN AnaVist) for the forecasting of converging industries demonstrates partial convergence between the pharmaceutical, the chemical, the nutrition and the cosmetics industries and the suitability of the employed approach.
Abstract: Converging industries are characterized by the blurring of boundaries between technologies, markets and industry sectors. As such they can enable firms to access new markets or threaten them with an array of new competitors and a lack of knowledge. This makes an early identification of convergence trends highly important. In the present paper we focus on the application of a frequency-based analysis and visualization software (STN AnaVist) for the forecasting of converging industries. Scrutinizing 3,836 patent and scientific publication references on phytosterols in the areas of nutraceuticals and cosmeceuticals, we employ research landscape, co-authorship and International Patent Classification (IPC) co-classification analyses. The results demonstrate partial convergence between the pharmaceutical, the chemical, the nutrition and the cosmetics industries and the suitability of the employed approach. According to this study, scientific as well as technology convergence have taken place in this segment, with a time-lag of roughly 25 years.
TL;DR: In this paper, the authors describe and discuss challenges and opportunities related to the development of innovative firms' networks, using four case studies based on interviews and case studies conducted by the authors.
Abstract: The purpose of this paper is to describe and discuss challenges and opportunities related to the development of innovative firms' networks. The paper utilises four case studies based on interviews ...
TL;DR: In this article, the authors analyzed the relationship between teacher firms' relative characteristics and student firms' performance of the technology alliance, using the empirical data of the Korean IT firms that were listed on Korean stock market during 1999-2005.
Abstract: With the dramatically changing technology and market environments, the importance of technology alliance to develop new products and technologies by utilizing firms' external knowledge has increased. In order to provide insight on the relationship between teacher characteristics and technology alliance performances, this study conceptualized an alliance structure according to Lane and Lubatkin's 'dyadic construct,' consisting of student firms which absorb knowledge and teacher firms that transfer knowledge. Then we analyzed the relationship between teacher firms' relative characteristics and student firms' performance of the technology alliance, using the empirical data of the Korean IT firms that are listed on Korean stock market during 1999–2005. From this analysis, we find that teacher characteristics, such as technology capability, technology similarity, and capability for knowledge transfer, influence the performance of technology alliance.
TL;DR: This work relies on an extensive case study of the ERP system Movex at the furniture manufacturer Edsbyn and on literature on user-related innovations, organisational studies and inter-firm relationships to extract a series of additional user- related complexity dimensions.
Abstract: What can cause five postponements and a delay of two years in introducing a relatively simple ERP system that usually takes only a few months to be implemented? We find the answer to this puzzle by highlighting the context of use of this high technology IT capital good, an issue so far overlooked because the literature on complex product system (CoPS) focuses on the intrinsic dimensions of the product and the provider. We rely on an extensive case study of the ERP system Movex at the furniture manufacturer Edsbyn and on literature on user-related innovations, organisational studies and inter-firm relationships to extract a series of additional user-related complexity dimensions. These include the importance of the capital good for the user, the user's perception of its complexity and the strength and complexity of the routines to be changed at the using organisation. We conclude the paper with implications for complex systems providers.
TL;DR: In this paper, a study of how a power-split technology for hybrid vehicles needed and found support and interest from a variety of social actors to reach the market is presented. But the idea of one central innovator driving the process all the way may not always be applicable.
Abstract: Innovation processes are out of necessity and by definition always open-ended and embedded in social interests and beliefs. This paper reports a study of how a power-split technology for hybrid vehicles needed and found support and interest from a variety of social actors to reach the market. One of the principal challenges of innovators is to mobilise support and attract interest among relevant social groups; innovations are always, to some extent, dependent on their ability to conform to pre-existing practices and beliefs. Based on a study of a hybrid electric vehicle (HEV) project at Volvo Cars, this paper investigates how the concept of interessement can contribute to a better understanding of the innovation processes (Akrich et al., 2002a,b). It concludes that this concept contributes to interesting perspectives on the dual technological and social nature of the innovation process but that the idea of one central innovator driving the process all the way may not always be applicable.
TL;DR: Wang et al. as discussed by the authors compared the fitness and forecasting ability of three conventional models (the Logistic, Bass, and Gompertz models) and analyzed the determinants of the diffusion rate.
Abstract: The rapid diffusion of mobile telephony is an important subject in diffusion studies of innovation. This study attempts to learn how mobile telephony diffuses in China, which has the most mobile telephone subscribers worldwide, in terms of the appropriate growth model and forces driving the diffusion. To identify the appropriate growth model, this study compares the fitness and forecasting ability of three conventional models — the Logistic, Bass, and Gompertz models. The determinants of the diffusion rate are then analyzed based on the most appropriate model. Empirical results, based on data for mobile telephone subscribers in China for 1986–2007, indicate that the Gompertz model performs best. Moreover, the four determinants for the diffusion rate are: number of fixed-line telephone subscribers, the low cost of mobile handsets, pre-paid service and the personal handy-phone system (PHS) service.
TL;DR: In this article, the authors summarized the results of a fundamental research project to understand the perception of high-end products by consumers, which consisted of in-depth qualitative interviews with over 75 global leaders of luxury and premium companies, star designers and thought leaders.
Abstract: The paper summarizes the results of a fundamental research project to understand the perception of high-end products by consumers. The first part consisted of a series of in-depth qualitative interviews with over 75 global leaders of luxury and premium companies, star designers and thought leaders. The analysis of the collected data identified five dimensions of high-end offerings, with each dimension having a unique set of four factors. The second part included a massive quantitative (based on Rule Developing Experimentation) survey conducted in the US, UK, Italy and China with about 1800 qualified middle- to upper-class respondents participating in a total of 20 distinct conjoint-based surveys to discover the driving forces behind their perceptions of high-end products. This paper considers in depth one of the five dimensions — leadership and innovation. The analysis of the quantitative part includes mind-set segmentation and demographic subgroups. The research addresses one aspect of today's big question: "How can global brands migrate from being cost-driven commodities to higher margins and profits?" The answer is in the high-end.