The following are the activities that constitute Innovation Management:
1. Technological Innovation: This refers to the Integration between technologies and the product-markets of the firm and emphasises the importance of satisfying the customer with the innovations in any firm. In other words, technology development (production and administration) needs to be integrated with product development also at the strategic level.
2. The Process of Innovation: By this is meant the cross-functional (business) process of activities that create innovations across the departments of the firm. Obviously, no one department is responsible for innovation and it is, thus, necessary to see how departments together create innovations.
3. Strategic Technology Planning: This refers to the planning of techology and/or competence projects with the aim of maintaining a balanced portfolio of technologies and/or competencies.
4. Organizational Change: Innovation is closely related to organizational change. No matter how small or large the innovation, it will affect the organization with needs for new knowledge, new markets, new employees and so on. Thus it is difficult to speak of innovation without considering organizational change.
5. Business Development: Of course innovation should be seen as a means for creating new and improved business for the company. That is innovation can both drive and be driven by business development as the second very critical contextual element of innovation management.
(Source: “Situations for Innovation Management: towards a contingency model” by Anders Drejer, which appeared in the European Journal of Innovation Management, Volume 5 – Number 1 – 2002)