Many British firms are struggling with what innovation means despite almost universal recognition that it is critical to making companies and nations more competitive, according to a newly published study.
John Storey of the Open University Business School has reached this conclusion after carrying out one of the most extensive studies of how managers relate to innovation.
The research, backed by the Economic and Social Research Council, looked at how managers go about fitting innovation into the overall business strategy and the day-to-day workings of their companies.
Professor Storey said most organisations sport a few enthusiasts - "innovation champions" - but they often face an uphill struggle with colleagues who take more sceptical and entrenched positions.
As a result, innovators can find themselves in a vulnerable position. There are, however, notable exceptions like the pharmaceuticals and electronics industry, where companies take it for granted that innovation is vital.
In most organisations there is no general consensus among managers about the place or importance of innovation to success of the business, says Professor Storey. "Even among top team members there is significant variation in judgement about the wisdom of pursuing an innovative strategy," he said.
The research involved in-depth interviews with managers in many leading companies, including Hewlett Packard, NatWest bank, GEC, as well as organisations like the BBC, Oxfam, Age Concern and NHS trusts.
Professor Storey said: "It is generally accepted that while the British can be very inventive as individuals, companies tend to be poor at translating novel ideas into products and services with a market impact. Companies, it seems, may have lots of creative people but still be poor at innovation."
Among the reasons cited by managers for inability to innovate was lack of time and money, short termism; people confined to narrow "boxes"; and fear of failure resulting in a "safety first" approach.