Success and Failure of Innovation: A Literature Review
Abstract
This review examines 43 recent papers about factors behind success and failure of innovative projects. Nine out of the 43 papers report a larger number of possible causes for success or failure and provide some rank ordering. Analyzing these rankings we find that the nine studies have a significant degree of similarity among the ten highest-ranking success factors; however, there is little similarity among lower ranking factors. The various studies remain either inconsistent or inconclusive with respect to factors such as strength of competition, R&D intensity, the degree to which a project is "innovative" or "technologically advanced" and top management support. Agreement exists, however, about the positive impact on innovative success of factors such as firm culture, experience with innovation, the multidisciplinary character of the R&D team and explicit recognition of the collective character of the innovation process or the advantages of the matrix organization.
