Business competitiveness and sustainability depends on the effective management of innovation. To be effective, innovation needs to take place within every area of an organisation and by association within organisational networks that include key suppliers, customers and other strategic partners. Distributed innovation management is the process of managing innovation both within and across networks of organisations that have come together to co-design, co-produce and co-service the needs of customers. As innovation collaboration spreads outside the reporting structures of any one organisation, its management faces new challenges that must be addressed if collaboration is to be successful. This paper presents a discussion on the relational capabilities that need to be nurtured if distributed innovation management is to occur. It introduces an integrated framework and tools to support innovation from the individual employees to the distributed network level. Finally, it presents a case study of distributed innovation between a consortium of six organisations within the biotechnology area.
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