Accessing Innovation in Supply Chains

Firms obviously intentionally purchase innovation when they source equipment, raw materials, and components for assembly. There are also myriad instances where innovation is acquired serendipitously but is nonetheless an important part of the value proposition. The supply chain is, hence, a key conduit for the flow of innovation between firms. Indeed, innovation can be considered a highly specialized form of information that may have long- or short-term implications and may be shared using formal or informal means; however, it is often ad hoc, meaning that while the knowledge flows and sharing are real, many firms do not account for such when engaging customers and suppliers. Firms need to embrace the concept of open innovation flow into their supplier selection criteria and in their relationships with their customers.