How do new innovation paradigms challenge current innovation policy perspectives

Successful firms today are forced to deal with new competitive realities by
being globally present, innovatively resourceful and internationally competitive
on multiple markets across the world. The new competitive realities
challenge firms to open their innovation processes by adopting new innovation
paradigms such as user-driven innovation, open innovation and value
co-creation. The user-driven and open innovation paradigms have already
become the subject of extensive research and are currently discussed in
terms of their potential implications for policy development. The value
co-creation paradigm is relatively new, but with a significant potential to also
affect formulation of new innovation policy perspectives. The three paradigms
are considered as examples of distributive innovation, which is based
on the need of firms to orchestrate and integrate the innovative contributions from multiple actors by managing knowledge sharing processes across
entire value networks. The chapter provides a brief description and comparison
of these new innovation paradigms and discusses the challenges
that these paradigms imply for existing innovation policies. The innovation
policy recommendations are based on insights derived from the analysis of
innovation policy development in Denmark. The “triadic” approach of the
new innovation paradigms suggested here will benefit the discussion of the
innovation policy issues and challenges associated with the adoption of the
three new paradigms in other countries than the discussed exemplary case.