Sustaining product innovation in the new economy: the case of Siemens Switzerland

Today innovation is considered the main driver for growth in the new economy and it therefore follows that to sustain any competitive advantage, continuous innovation is a pre-requisite in most industries. However, innovation is by no means straightforward and for large firms, this situation is further exacerbated when small, entrepreneurial firms react to changing market conditions quicker than the often slower incumbent. This paper examines and analyses the steps taken by Siemens Switzerland to meet the threat posed by such firms and the influx of disruptive technologies. In particular, attention is paid to the firm´s development of a new dynamic innovation capability. The paper concludes with a model of activities that the firm have assimilated into proven processes for dynamic front-end innovation.