Do different product strategies require different innovative cpabillities?

This research examines whether product strategies require different innovative capabilities during the first phase of the new product development process. This was formulated in the following research question: Do different product innovation strategies require different innovation capabilities during the search phase of the product development process? To answer this research question the available literature was reviewed and empirically cases were examined. The literature review starts with a reviewof the various product development. There are a variety of models but almost all recognize the importance of the idea generation phase as a frontend homework activity before starting up actual product development. During this idea generation phase there are various sources of information for ideas that can come from both in or outside of the organization. Literature also provides techniques to stimulate idea generation such as brainstorming, attribute list, morphological analysis, and scenario analysis. To be able to generate ideas succesfully certain innovate capabilities are required. A model developed by de Jong and Brouwer (1999)was selected and seven general dimensions (People, Culture, Structure, Strategy, Networks, Available means, and Company characteristics) are discussed in detail, since each dimension contains a range of capabilities required to be succesful in increasing the idea generation power of a company. More importantly, these seven dimensions can also influence each other when factors within these dimensions change. Product strategies are also reviewed. There are numerous product strategies applicable in the marketplace. However, for the relevance of this research (the focus on idea generation) it can be concluded that most product devolpment strategies tend to have either a market or a technology driven orientation. Accordingly, it is possible to categorize the variety of applied product strategies within these two strategic directions. Literature show that different core capabilities are needed during the idea generation phase when following a market or technology driven strategy. When following a market-driven strategy (the Listener) the focal point of ideas are customers which means that the focus lies on marketing capabilities to be able to gather information from and about customers. On the contrary, following a R&D driven strategy (technology driver) the focus is on developing new technologies and capitalize on their own capabilities for new ideas. At the same time it is evident that there is no standard list of 'magic' capabilities appropriate for every organization. To add to the literature review, two case studies were performed. The most important findings were that in a business-to-business environment the product develpment is strongly customer driven, the innovations were mostly incremental and that a company's position in the value chain within an industry is an important factor for the strategic direction. From a theoretical perspective a positive answer can be given to the main research question by showing that a market-driven Listener strategy requires different capabilities during the idea generation phase than an R&D driven technology driver strategy. Based on this conclusion together with the other findings from the literature and the case studies, it was possible to develop a new diagnostic tool for SMEs.