Crossing The Innovation Chasm: An Industry Perspective

Innovation within the national system of innovation is considered central for economic growth and consequently for addressing the social imbalances currently in existence. It is critical in addressing some of the national priorities, namely, poverty reduction, job creation, sustainable development and improving the quality of life. However, the national system of innovation is constrained by the disconnect between the knowledge generation sector and the commercial sector, referred to as the innovation chasm. It relates to the stagnation of knowledge at the basic R&D end, which if effectively transferred could translate into competitive products and services at the market end.

The underlying problem lies in the weak or non-existent relationship between the R&D and commercial sectors. As long as this persists it erodes the potential contribution that R&D can make in seeding innovative ideas that can be transformed into services and products in the commercial domain. This problem summed up within the national innovation system amounts to poor economic performance and competitiveness. Understanding and appreciating the challenges associated with the innovation chasm is therefore of critical importance within the framework of socio-economic growth and development.

Central to the innovation value chain are the functions of R&D, manufacturing and marketing and how these relate to the latest advances in science and technology and to the needs of society and the marketplace. As these functions are also largely core functions within companies, it would be instrumental to understand the effects of the organisational dynamics, which support these functions, on innovation performance.

This study will focus on the industry sector and attempts to understand some of the constraints affecting the performance of companies with respect to technological innovation. More specifically, it will unpack the effects of the organisational dynamics on