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This article empirically tests the impact of risk appetite of the executive team on the re-innovation strategy after technological innovation failure using a panel regression model from the perspective of regional financial development level of enterprises.

By means of time series global principal component analysis and panel regression model method, the study validated and analyzed the impact of risk appetite of the executive team on the re-innovation strategy after enterprise technological innovation failure.

The research found that the higher the risk appetite of executive team, the more inclined the enterprise is to choose the “focusing on quantity, ignoring quality” re-innovation strategy after technological innovation failure. The better the financial development level of the region where the enterprise is located, the better it can effectively reduce the re-innovation strategy of “focusing on quantity, ignoring quality” of the enterprise due to the high risk appetite of the executive team.

The findings of this study are helpful in improving the financial development level of the region where the enterprise is located. It can help the executive team of the enterprise to more objectively choose the innovation strategy after technological innovation failure, and reduce the phenomenon that the executive team of the enterprise only pays attention to the quantity of re-innovation and underestimates the quality of re-innovation after technological innovation failure due to its high risk appetite.

Past work has shown that failure tolerance by principals has the potential to stimulate innovation, but has not examined how this affects which projects principals will start. We demonstrate that failure tolerance has an equilibrium price – in terms of an investor’s required share of equity – that increases in the level of radical innovation. Financiers with investment strategies that tolerate early failure will endogenously choose to fund less radical innovations, while the most radical innovations (for whom the price of failure tolerance is too high) can only be started by investors who are not failure tolerant. Since policies to stimulate innovation must often be set before specific investments in innovative projects are made, this creates a trade-off between a policy that encourages experimentation ex post and the one that funds experimental projects ex ante. In equilibrium, it is possible that all competing financiers choose to offer failure tolerant contracts to attract entrepreneurs, leaving no capital to fund the most radical, experimental projects in the economy. The impact of different innovation policies can help to explain who finances radical innovations, and when and where radical innovation occurs.

This study aimed to examine the relationship between spiritual capital and small business innovation in a developing market economy and the highly religious society of Minangkabau.

A quantitative method was used by analyzing the data with partial least squares (PLS), comprising 278 entrepreneurial and high-growth aspiration small and medium-sized enterprises (SMEs) owners in a developing economy such as Indonesia.

The results showed that spiritual capital was a source of acquiring knowledge from innovation failure situations, serving as a catalyst for the occurrence of novelty and differentiation-related innovation.

The perspective of spiritual capital was provided within a religious community, showing that future reports should produce comparative analyses from varying contexts. Since understanding entrepreneurs' perspectives and spiritual capital situation remained ambiguous, the performance of qualitative analysis was crucial.

Entrepreneurs were expected to obtain considerable benefits from spiritual capital as a source of inspiration for differentiation and higher levels of novelty-related innovation. Similarly, policymakers should implement the capital and learn from failure to evaluate entrepreneurial SMEs concerning their capabilities.

Previous studies were unable to acknowledge an alternative source of innovation in a specific context, such as entrepreneurial SMEs with high-growth aspirations and spiritual capital. This is because capital contributes to innovation, helps in the assimilation of innovative knowledge and causes novelty-related innovation.

The paper seeks to examine the concepts, types and implications of festival innovation and failure.

A review of extant literature is undertaken and examples of innovation and failure in three festivals are used to demonstrate the simultaneity and co‐dependency of innovation and failure in the process of festival management.

It is apparent that many forms of program, market, service, organisational and financial innovation are available to festival managers. Many involve risk of failure due to the resource dependency theory postulated in the literature, as well as more pragmatic reasons including bad weather and managerial incompetence.

Festival managers responses to the dual challenges of embracing innovation and avoiding failure will determine the future of festivals, so it is vital that knowledge is developed.

There is limited literature on festival management innovation and failure and limited information available to festival managers regarding the nature of festivals that facilitate innovation or failure. This paper makes an original contribution to these important issues in festival management.

ICT is everywhere, but information society policy cannot address all the sectors and policy issues in which ICT plays a role. This paper's aim is to develop an analytical framework to assist policy makers in deciding on the priorities and coordination of information society policy.

The analytical framework is based on public management literature and innovation literature. The framework can be applied to individual ICT issues – when to lead, advise, explore or refrain from policy intervention. The framework consists of seven questions, including the rationale for intervention, stakeholders, the mandate of fellow policy makers (e.g. other ministries) and the costs, benefits and risks of intervention. The framework was applied in three cases.

A leading role for information society policy is most clear for e‐skills. For services innovation, several market failures and system failures appear to be relevant. This calls for a mix of policy instruments, with roles for several ministries. Policy coordination is crucial. For ICT in health sectors – and other public sectors – the conclusion is that information society policy can take the lead on cross‐cutting ICT issues such as privacy, standardisation and interoperability.

The article addresses one of the main challenges of information society policy: how to increase its scope, yet maintain effectiveness and coherence.

This study aims to empirically examine the influence of management control systems (MCSs) on knowledge acquisition from innovation failure (KAFIF), which further impacts empowerment, creativity and organizational innovation. This study argues that enabling an MCS positively influences KAFIF, whereas controlling the use of an MCS negatively influences KAFIF. Further, KAFIF positively impacts empowerment, creativity and organizational innovation.

This study aims to create a comprehensive stimulus–organism–response (S-O-R) framework. This framework includes an MCS (belief, interactive, boundary and diagnostic) as a stimulus, KAFIF as an organism and creativity, empowerment and organizational innovation as responses. The data were gathered using an online survey administered to a sample of 321 employees working in India’s micro, small and medium enterprises and analyzed using partial least squares structural equation modeling.

The results indicate that there is no correlation between belief control and the acquisition of knowledge from the failure of innovation, interactive control has a positive association with KAFIF and boundary control has no relationship with KAFIF. Diagnostic control has a significant negative association with KAFIF. Further, this study found that KAFIF positively associates with empowerment, creativity and organizational innovation.

This study is among initial studies that examine the influence of MCSs on KAFIF, which impacts empowerment, creativity and organizational innovation. Further, it helps be one of the initial literature on studying KAFIF rather than innovation success.

Despite the multiple calls for research on the dark side of open innovation, very few studies have approached the topic so far. This study aims to analyse successful and unsuccessful open innovation projects.

This study uses thematic analysis to describe the factors determining their (un)success. The researchers interviewed 27 managers and owners in the manufacturing sector. Then, the respondents were asked to discuss one successful and one unsuccessful open innovation project to explore the differences in triggers and setbacks, focusing on the causes that determined the failures.

Findings show that many interviewees are reluctant to identify failure cases, which somewhat explains the paucity of studies on the topic, and others do so when the failure is recognised by a third party (such as a public institution not granting funds to the project). This study discussed how this phenomenon is linked with the paradoxical relation between innovation success and failure. It is also found that triggers and setbacks determining the project's (un)success are markedly differently based on the technological intensity of the firm. Implications for scholars and practitioners are also drawn.

This study provides a balanced view between open innovation successes and failures to offer informative recommendations to practitioners. Furthermore, it contributes to filling the scarcity of studies related to risks and failures of open innovation projects. This gap has been addressed by studying the factors that determine the success and unsuccess of an open innovation project.

The purpose of this paper is to explore how innovation has become more important in information society policy and what the implications are for policy design, policy coordination and policy evaluation.

Against the background of European information society policy, a case study is done on the policy mix for ICT innovation in The Netherlands. A highly structured qualitative methodology is developed to analyse the relevant policy instruments in information society policy and innovation policy. The methodology includes a typology for rationale, policy instruments and element of the innovation process.

To a large extent, information society policy and innovation policy are complementary. There is some overlap between policy instruments. The rationale and objectives can be more explicit. The policy mix had a positive impact on information communication technology (ICT) knowledge, broadband and e‐government.

The paper presents the relevance, methods and results of a detailed study on the intersection of two policy fields: information society policy and innovation policy.

Until now there has been little attention paid to the emotional costs of innovation failures, and in particular, how prior innovation failures hinder subsequent new, related innovation. The saga of Sun Microsystems' Sun Ray computer illustrates the devastating impact of institutional innovation failure trauma. This paper aims to investigate its development.

The authors trace the development of Sun Microsystem's Sun Ray offering, which replaced its failed JavaStation product. As it was launched, the Sun Ray endeavor encountered the classic “innovator's dilemma” problems that are well known to those who attempt to champion disruptive innovations.

But despite its many strong competitive advantages, the Sun Ray computer has unsuccessfully struggled to catch hold with customers. To a large degree the causes are Sun Microsystems' inability to learn from its earlier innovative JavaStation failure and to recover from the trauma of that failure.

To understand Sun Ray's story, the authors interviewed nearly 40 key people and compiled nearly 300 documents, from internal memos to market analyses to press releases to meeting minutes.

Companies can develop proactive management practices to prevent major trauma and consequent innovation paralysis. Six ways to do so are offered.

This is a study of a radical innovation that could have changed computing history. But Sun Ray, Sun's computing innovation was too closely associated with an earlier, highly traumatic and publicized failure of JavaStation and never really got a chance to prove its mettle. Overcoming such innovation trauma is a critical but underappreciated aspect of innovation management in companies such as Sun Microsystems that depend on continuous innovation for their competitiveness.

With Spanish Community Innovation Survey data, this paper tests two main hypotheses as explanation of the fall in business innovation output in the Great Recession: the aggregate demand effect (firms have lower propensity to initiate innovation projects in recession than in contraction from demand-pull and profit expectations effects) and the risk effect (a greater proportion of the initiated projects fail in recessions than in expansions).

The research methodology consists on first modelling the decision by firms to initiate innovation projects in t or not (probit model), and, second, modelling the outcomes, success or failure in t + 1 of firms that decide to initiate (Heckman model).

The empirical results support the two hypotheses. They also indicate that the sensitivity of the decision to initiate innovation projects to the aggregate demand is more pronounced among financially constrained firms than among unconstrained ones, while the risk effect appears to be independent of the financial situation of firms.

The results of the research are limited by not being able to follow up individual innovation projects, and by not having available a more representative sample of firms where non-innovators and potential innovators are represented (now is biased toward potential innovators).

The results highlight the importance of macroeconomic stability for sustained business innovation output over time and calls managers’ attention in better management of innovation risk.

The results of the paper recommend macroeconomic polies aimed at the stabilization of aggregate demand and smoothing the business cycle, as a way to contribute to the stabilization of the growth of innovation output over time. Monetary and fiscal policies that smooth the business cycle will then have significant effects in the stabilization of innovation output and, in turn, in the reduction of volatility of economic growth over time. Increasing the direct public financial aid to undertake innovation projects in recession periods will not have the same innovation output stabilization effect than the stabilization of the aggregate demand. The reason is that, as the paper points out, the innovation output of financially unconstrained firms is also affected negatively by the contraction of aggregate demand in recession periods.

This paper is the first one to investigate the differences in business innovation outputs in expansions and recessions, separating the aggregate demand and the risk effect that the organisation for economic co-operation and development identifies as main determinants of the fall in innovation output during the Great Recession. The decomposition of firms’ innovation output in the decision to initiate innovation projects and the likelihood that those initiated succeed is also new in the literature.