1. Introduction and OverviewI. FUNDAMENTALS2. Models of Innovation3. The Underpinnings of Profits: Assets, Competences, and Knowledge4. Sources and Transfer of InnovationII. STRATEGIZING5. Recognizing the Potential of an Innovation6. Reducing Uncertainty: The Role of Technological Trends, Market Regularities, and Innovation Strategy7. Choosing a Profit Site: Dynamic Competitive Analysis8. Strategic Choice or Environmental Determinism9. Identifying Potential Co-competitor10. Strategies for Sustaining ProfitsIII. IMPLEMENTING AND PROTECTION OF PROFITS11. Financing Entrepreneurial Activity12. Implementation of the Decision to AdoptIV. GLOBALIZATION13. Globalization for Innovations14. Innovating for Emerging Economies15. Role of National Governments in Innovation16. The Internet: A Case in Technological Change17. Strategic Innovation ProcessAppendix 1 Standards and Dominant DesignsAppendix 2 Organizational StructuresAppendix 3 Organizational BoundariesGlossaryCase 1: Netscape CorporationIndex

Innovation is the key to gaining and maintaining a competitive advantage in the business world. Using multi-functional research from economics, organizational theory, general management and marketing, and strategy literature.Designed to meet the increasing number of courses in innovation management, the text provides full coverage of this vitally important area of business. Drawing from his extensive professional and academic experience, Allan Afuah shows the relationship between innovation, a management function, and profitability, a financial function. In this second edition, Afuah explicitly incorporates coverage of the Internet as a technological change and offers an entirely new chapter, "Strategies for Sustaining Profits." The text takes a unique multi-functional approach that integrates the important contributions of economics, organizational theory, marketing, and finance to innovation management. This approach provides students with a full presentation of appropriate management theory and detailed coverage of practical concerns such as the role of government regulation, choosing a profit site, and the transfer of innovation. The impact of the public and international sectors is highlighted with chapters on globalization, innovation in emerging economies, and the role of government in promoting innovation.