Innovation Strategies and Challenges in Emerging Economies: The Case of Research and Technology Organizations in Turkey
Innovation is highly critical for every company, especially for technology-based organizations looking to sustain their competitive advantage. However, this is not an easy task. Regardless of the size of the enterprise, market and location, all organizations face numerous challenges. Even though huge barriers to innovation exist in different countries, firm- and industry-specific challenges can be distinguished. This paper examines innovation strategies and obstacles to innovation in research and technology organizations (RTO) of Turkey. From the most important to the least, nine different challenges are ranked according the results of this survey. The findings reveal that to take the lead in innovation, financial constraint is the biggest challenge, which is consistent with the related literature. It ranked number one in this study. Beyond that, based on a sample of 40 RTOs, regional challenges such as underdeveloped regional innovation ecosystem plays a significant role in hampering innovation. Most of the organizations (55%) embrace an incremental approach to innovation, while only few pursue radical shifts. About 40% of the RTOs focus on product innovation, and 27.5% of them concentrate on technological innovation, while a very limited number aim for operational excellence and customer engagement as the focus of their strategic innovation efforts.
 Laforet, S., (2008). Size, strategic and market orientation effects on innovation. Journal of Business Research, 61, 753-764
 Drucker FP., (1993). Innovation and Entrepreneurship. Harper&Row Publishers Inc.: New York.
 Fingar, P., (2006). Extreme competition: innovation and the great 21st century business reformation. Meghan-Kiffer Press: Street Tampa, FL
 OECD Oslo Manual, (2005). Guidelines for Collecting and Interpreting Innovation Data.Paris.
 Eschenbaecher, J. (2009). Gestaltung von innovationsprozessen in virtuellen organisation durch kooperationsbasierte netzwerkanalyse. Aachen, Mainz Verlag.
 Moore, G., (2005). Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution. Penguin, NY
 Jaruzelski, B., & Dehoff K. (2007). The customer connection: global innovation in 1000. Booz and Company Inc.: New York, NY.
 Hadjimanolis, A. (1999). Barriers to innovation for SMEs in a small less developed country. Technovation, 19, 561-570.
 Keizer, J., Dijstra, L., & Halman, J.I.M. (2002). Explaining innovative efforts of SMEs. An exploratory survey among SMEs in the mechanical and electrical engineering sector in Netherlands. Technovation, 22, 1-13.
 Radas, S., & Bozic, L. (2009). The antecedents of SME innovativeness in an emerging transition economy. Technovation, 29, 438-450.
 Motta, J.J., Morero, H.A., & Borrastero, C. (2013). Complementarities between innovation policies in emerging economies. The case of Argentina’s software sector. Int. J. Technological Learning, Innovation and Development, 6:4, 355-373.
 Seifi, H.R., & Sazvar, A. (2012). Strategic Analysis & Strategic Planning Barriers ranking using MADM Techniques in High Tech Organizations. Interdisciplinary Journal of Contemporary Research in Business, 3:11, 851-859.
 Zhu, Y., Wittman, X., & Peng, M.W., (2011). Institution-based barriers to innovation in SMEs in China. Asia Pc J. Manag, 29, 1131-1142.
 Cordeiro, A.S., Vieira, F.D., (2012). International Conference on integration of Design, Engineering & Management for innovation, SC, Brasil.
 Piattier, A., (1984). Barriers to innovation. Frasnces Printer. London and Dover NH.
 Larsen P., & Lewis, A., (2007). How Award-Winning SMEs Manage the Barriers to Innovation. Creativity and Innovation Management,16:2, 142–151.
 Segarra-Blasco, A., Garcia-Quevedo, J. &Teruel-Carrizosa, M., (2008). Barriers to innovation and public polıcy in Catlonia. International Entrepreneur Manager Journal, 4, 431-541.
 Arvid, A., Carl-Filip, C., & Daniel, J. (2009). Competence barriers to innovation: A study on small enterprises. Bachelor Thesis. Jönköping International Business School.
 Janeriro, P., (2009). Barreiras a Inovaçao. Jornal de Negocios, 28.
 Madrid-Guijarro, A., Garcia, D., & Auken, H.V., (2009). Barriers to Innovation among Spanish manufacturing SMEs. Journal of Small Business Management, 47:4, 465-488.
 Tovstiga, G., & Bırschall, D., (2007). Henley SME Innovation Study. Proceedings of PICMET 2008, 27-31 July, Cape Town, South Africa.
 Buse, S. Tiwari, R., & Herstatt, C., (2010). Global innovation: An answer to mitigate barriers to innovation in small and medium sized enterprise. International Journal of Innovation and Technology Management, 7:3, 215-227.
 Demirbas, D., (2010). How do entrepreneurs perceive barriers to innovation? Empirical Evidence from Turkish SMEs. Proceedings of Oxford Business and Economics Conference 2010, Oxford, UK.
 Necadova, M. & Scholleova, H., (2011). Motives and barriers of innovation behavior of companies. University of Economics. Paraga
 Eurostat the Community Innovation Survey. 2012. France.
 Iammarino, S., Sanna-Randaccio, F. & Savona, M., (2006). Multinational firms and obstacles to innovation. Evidence from the Italian Community Innovation Surney (CIS 3).
 Mussi, F., & Spuldaro, J., (2008). Barrieirss s inovaçao e a contribuiçso ds perspetivs institucional: um estudo de multiplos casos. Revista de Administraçao e Inovaçao, 5:1, 36-52.
 Kamalian, A., Rashk,, M. & Arbabi, M.L., (2011). Barriers to Innovation among Iranian SMEs. Asian Journal of Business Management, 3:2, 79-90.
 Tether, B., & Swan, G. (2003). Services, innovation and the sciences base: an investigation into the UK’s ‘system of innovation’ using evidence from the UK’s third community innovation survey. International Workshop. Innovation in Europe, Rome.
 Etttlie J.E., & Rubenstein A.H. (1987). Firm size and product innovation. Journal of Product Innovation Management, 4, 89-108.
 Dunk, A.S., (2007). Innovation budget pressure, quality of IS information, and departmental performance. The British Accounting Review, 39:2,115-124.
 Cingöz, A., &, Akdogan, A.A. (2013). Strategic flexibility, environmental dynamism, and innovation performance: An empirical study. 9th International Strategic Management Conference, 27-29 June 2013 Riga, Latvia.
 Li, Y., Su, Z., & Liu, Y. (2010). Can strategic flexibility help firms profit from product innovation?. Technovation, 30, 300-309.
 Eschenbaecher, J. & Graser. F. (2009). Managing and Optimizing Innovation Process in Collaborative and Value Creating Networks. International Journal of Innovation and Technology Management, 8:3, 373-391.