This document discusses innovations and common myths about innovation. It begins by noting that over 823 million euros of public money in Finland is allocated to innovation policy and internationalization initiatives annually. However, over 90% of innovations are done internally by companies themselves. The document then addresses six common myths about innovation: 1) Not all ideas are innovations; 2) Creativity does not equal innovation; 3) Innovation processes are not always fast; 4) Companies often do need to innovate; 5) Innovation is not a linear or controllable process; 6) Innovation is not done by small internal teams alone. Real innovation involves turning ideas into new products, services or processes that generate commercial value.

1. INNOVATIONS
AND INNOVATION MYTHS
Mika Martikainen
Business presentation 30.11.2010
@English for Communicating in Business –course
University of Eastern Finland, Kuopio

2. JUST TO THINK..
 In Finland
 823 million euros of public money
 are marked to innovation policy and
companies’ internationalization
(from 2011 Budget Proposal to Parliament by Ministry of Finance)
 BUT, over 90 % of innovations are done inside
the firms and organizations by themselves

3. CONTENT
 Why?
 What is innovation?
 Six innovation myths and examples
 Conclusion and final words
 Q&A

4. WHY?
 my main subject in Economics: Innovation
management
 Bachelor’s and Master’s thesis: Innovation
environment in Keuruu region (in social sciences,
main subject entrepreneurship)
 own interest
 my thought: Innovation processes will be normal
and continual in all organizations in the future
(or maybe even today in some companies)

5. WHY?
 innovations & innovating are ”trendy”:
 European Commissions Innovation policy (2008) and
Innovation Action Plan (2010?)
 Finland’s National Innovation strategy (Ministry of
Employment and the Economy 2008)
 many regional strategies, like Innovation strategy of
Eastern Finland (Tekes 2007)

6. WHAT IS INNOVATION?
 multi-stage process where new ideas are
transformed into new/improved
 products
 services
 processes/procedures
 which are commercially exploited
 so an invention/idea is not an innovation because
it doesn’t add value to company/organization

7. INNOVATION ENVIRONMENT…
 = All organizations and operators (public or
private sector) in one regional area
 city covernment, (regional) development
companies, Tekes, Finnvera, banks, insurance
companies, accountants, consultants,
entrepreneurship organizations, …
 and of course enterprises themselves

8. INNOVATION MYTHS
People – even entrepreneurs – think:
 innovation =
”something nonsense terminological hype from consults”
 or ”it doesn’t concern me/us”
 or ”I’m not intrested”
 or ”I don’t understand”
 other negative or wrong thoughts about
innovations or innovating..coming next.

9. MYTH #1: ALL IDEAS = INNOVATION
 False.
 Most ideas are stupid or bad
 = illegal, infeasible, nothing new..
 pure idea, invention or vision = nothing ..
 …if you can’t profit it commercially

10. MYTH #1: ALL IDEAS = INNOVATION
– (BAD) EXAMPLES
 sub-prime loans…
 new coke in 1985 (Coca Cola Company)…
 Iomega zip –drivers…

11. MYTH #2: CREATIVITY =
INNOVATION
 False.
 Professor Alf Rehn has criticised: ”creativity is a
buzzword”…
 Erkki KM Leppävuori from VTT: ”innovation is 1
% of idea and 99 % of hard work”

12. MYTH #2: CREATIVITY =
INNOVATION - EXAMPLES
 Many big companies are creative and innovative
 like Apple and Google..
 Google’s offer: 20 % of work time for own
projects/ideas
 ..but most of the projects lack

13. MYTH #3: INNOVATION PROCESSES
ARE FAST
 False.
 From idea to success innovation can take even
years (or decades)
 Sometimes processes are fast, for example agile
software development (focus on doing/coding
rather than planning)

14. MYTH #3: INNOVATION PROCESSES
ARE FAST - EXAMPLE
 Kitewing /
 Windsports.net
 idea 1987
 company founded 1993
 in 2009: retails in over 20
countries and four employees
 not so fast?
(source: Fogelholm Carl-
Magnus: Tuoteideasta
innovaatioksi. 2009)
(Photo from Flickr.com by laazik, CC-licensed;
http://www.flickr.com/photos/laazik/3391797789/)

15. MYTH #4: WE DON’T NEED TO
INNOVATE
 False.
 You probably do it all time, specially
entrepreneurs
 innovate = think different, ”how to make more
money”

16. MYTH #4: WE DON’T NEED TO
INNOVATE - EXAMPLE
 Interviewed CEO of food industry company (~70
employees):
 ”innovating is necessity… because of productivity
and cost-effectiveness”

17. MYTH #5: INNOVATING IS LINEAR
AND CONTROLLABLE PROCESS
 False.
 Best ideas come when you expect least
 Innovating = human work
 Really: you can’t control others’ brain activity

18. MYTH #5: INNOVATING IS LINEAR
AND CONTROLLABLE PROCESS -
EXAMPLE
 ”accident”
 production line
failed: too few /
bad glue
 noticed that it
sticks passable
without dirty =>
3M Post-it notes
(Photo from Flickr.com by riNux, CC-licensed;
http://www.flickr.com/photos/rinux/631345826/)

19. MYTH #6: INNOVATING IS DONE BY
SMALL INTERNAL TEAM
 False.
 Open innovation (by Chesbrough 2003)
 innovation process is ’open’: innovation sources…
 …from customers, subcontractors, interest
groups, stakeholders, even competitors..

20. MYTH #6: INNOVATING IS DONE BY
SMALL INTERNAL TEAM -
EXAMPLES
 Good example: Open Source communities
 ..like Linux (operating system for computers),
other OS softwares
 = everyone can program / be part of the
innovation processes
 Wikipedia.org, …
 Starbuck’s product ideas crowdsourcing (
http://mystarbucksidea.force.com/) , ...

21. CONLUSION
 Innovation is
 creativity
 ideas
 developing
 commercializing, but..
 slow
 uncontrollable
 process
 to make new product, service or procedure
to get more profit

22. FINAL WORDS
 Keep eyes and mind open
 Write ideas down and archive
 Wait [or ”make”] for the right moment (or job
situation) to share your idea
 An entrepreneur?
 Ask help from innovation environment (or tell
your idea to a friend or share it in the Internet)

23. QUESTIONS & ANSWERS
and Thank you!
Mika Martikainen
twitter.com/mikamartikainen
slideshare.net/mikamartikainen