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In the Brazilian context, the lack of studies to assess the importance of design to
the innovative process in an integrated manner is a fact. This study aims to analyze
the role of design in innovation processes in companies recognized nationally as
innovative. The research was based on the quantitative method through survey and
on qualitative in-depth interviews with three companies comprising the ranking As
Mais Inovadoras do Brasil da Revista poca Negcios de 2011. It can be identified,
from the relationship between innovation and design, an emphasis on the
management of the innovation processes with design being considered a strategic
requirement, but used in a restricted way. As for the qualitative study, it is
understood that two organizations are driven by design. In such cases, the design is
present in all stages of the innovation process, contributing to the development of a
systemic view that sees beyond the product, the communication and the experience.
Keywords: Innovation; design-driven innovation; strategic design
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Introduction
The economy growth and the need for constant changes stimulate the
organizations of the contemporary world to consider the development of
innovation as an essential process (Tidd, Bessant, & Pavitt, 2008). However, there
are challenges inherent to this process, and companies are constantly seeking the
best solutions to overcome them. It is important that it occurs continuously,
providing the sustainable growth of the organization in the market. Converging to
this idea, Fetterhoff and Voelkel (2006), Van der Meer (2007) and Schumpeter
(1934) expose that innovation should generate competitive advantage and
economic development and, consequently, bring monetary results and perceived
value related to products and services.
Organizations are seeking knowledge, expertise, methodologies and practices
that can assist in generating innovation (Kelley, 2001). As an advance in relation to
current practices, less linear methods have appeared, with the purpose of
integrating the design to the organizational practices, so that it operates as an
element interrelated to the traditional processes already established. In this
context, we highlight the strategic design methodology which, according to Zurlo
(2006), aims to perform activities of projection, whose object is the set of
integrated products, services and communication (product-system).
Although the relevance of the subject innovation is present in numerous
publications (Ardayfio, 2000; Utterback, 2007; Verganti, 2008), it is understood,
based on a search analyzing studies found in the database EBSCOhost, through the
key words innovation and design, that there is a gap in the Brazilian context of
studies that evaluate the importance of design to the innovation process in an
integrated way. In the light of these theories the research problem is established:
what is the role of design in innovation processes in innovative companies in Brazil?
To seek evidence on the issue, the present study has as its general objective to
analyze the role of design in innovation processes in companies recognized
nationally as innovative.
In order to achieve the objective a quantitative research through an online
survey was developed, applied to the managers of the innovation area in
seventeen companies present in the technological parks Tecnosinos and Tecnopuc,
refered in the ranking As Mais Inovadoras do Brasil da Revista poca Negcios de
2011, and in the Frum da Inovao da Fundao Getlio Vargas (FGV). Then
2
there was a qualitative study with three companies ranked among the five most
innovative in the ranking cited.
The study, motivated by a research project in the area, aims to contribute to
further discussion and theorizing in the field of design-driven innovation, expanding
the vision focused on a single organization for a broader perspective. This
perspective considers that the diagnostic of the design role in innovation processes
can support the construction of organizational networks and increase the
competitiveness of different regions.
Besides this introduction, the paper is divided into seven parts. The first refers
to the critical literature review and consists of three sections: Organizational
Innovation, Innovation and Design and Conceptual Schema of Research. The
following section explains the research methodology and how the data was
collected and analysed. The next section corresponds to the description and
analysis of results. Finally, it presents the main conclusions of the study.
Organizational Innovation
The changes and the market dynamism, characteristics relevant to the global
economic scenario, arouse competitiveness and the need for companies to thrive,
making organizations choose the initiative of innovation. From the economist
Schumpeter's legacy, the concept of innovation can be understood as creative
destruction that generates spontaneous and discontinuous changes, causing the
disruption of the balance achieved in the circular flow of the economic system
(Costa, 2006). Thus, innovation is the development or improvement of a product
(good or service) and an internal or external process in the organization (Oslo
Manual, 2007), generating competitive advantage and monetary value for
companies (Van Der Meer, 2007).
In the view of Martin and Morich (2011), the new consumer has a different
pattern of behavior. The ease in obtaining information as a result of market
dynamism suggests that consumers can easily compare, for example, information
about competitors in the market. This fact implies in a higher level of demand and
consumer expectations regarding products or services. Therefore, the unmet need
of the society and existing technology are the basic conditions that drive innovation
(Fetterhoff and Voelkel, 2006).
Understanding the concept of innovation can be deeply based on the
approaches of Kelley (2001), which relates this process to leverage of creativity,
creating value through new products, services and businesses. About this
perspective, he recommends setting up a culture for innovation, outlining the path
that will be followed in the context of each company. Among the different barriers
and opportunities to innovate, it recognizes the role of initiative, of creativity and
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the commitment of employees, intrinsic to the organizational culture. Moreover,
the strategy, the structure and the environment are highlighted as drivers of
development of this culture, which appears as a determinant factor in the creation
of a climate conducive to innovation (Acosta, Ramos, Del Rio, & Morejn, 2012).
The activity of innovation, according to the Oslo Manual (2007), corresponds to
four different typologies, understood as: product innovations, which relate to
significant changes in the potential of existing or completely new goods and
services; process innovations that represent significant changes in methods of
production and distribution; organizational innovations, which involve the use of
new methods, such as changes in business practices; market innovations through
the implementation of new marketing methods, which include changes in the
design of the product and packaging, promotion of the product and its marketing.
Finally, aiming to leverage the innovation process in the actual context,
methods oriented by design have arised, which propose that companies meet the
demands of the society through the development of innovations with languages,
messages and different meanings to consumers. It explains, then, the importance
of the act of designing as an element interrelated to the innovation processes.
Academic
Design Management
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The design can spread its "projective thinking" (design thinking), proposing the
project as a new paradigm of innovation (Brown, 2010). In a broader definition,
design means the activity to innovate in a product-service system to provide
solutions perceived by consumers (Zurlo, 2006).
Mapping Theory
The relationship between innovation and design has been broadly discussed in
the literature (Brown, 2010; Kelley, 2001; Verganti, 2008; Vieira, 2009), through
studies that present a state of the art mapping in reference to the subject designdriven innovation.
However, it is understood that there is a requirement to identify papers that
present design as a driving element to innovative processes. Accordingly, a
theoretical mapping of the major papers consolidated in the database EBSCOhost
was built, which has some relation to the theme. The survey considered
publications between the years 2008 to 2012. The materials found were classified
according to some factors regarding the objectives of the study.
The search in the database EBSCO (2012) was performed based on the following
keywords: design and innovation; 48 related articles were found, but eleven,
predominant to the theme, were chosen to be analysed. The selected and classified
articles are presented in Table 1.
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Design
Process
Project
TechnologY
Creativity
Journal
R&D
Author
Market Orientation
Acklin
The Design
Management
Institute
2010
Na; Boult
The Design
Management
Institute
2010
Journal Of Product
Innovation
Management
2010
Journal Of Product
Innovation
Management
2009
Carbonell;
RodrguezEscudero; Pujari
Journal Of Product
Innovation
Management
2009
2009
Athaide; Klink
Journal Of Product
Innovation
Management
2009
Chiva; Alegre
Journal Of Product
Innovation
Management
Zhong; Ozdemir
Industrial &
Corporate Change
2010
Flight; D'Souza;
Allaway
Journal Of Product
& Brand
Management
2011
2008
Year
Innovation
NAKATA; IM
Kelley
Armbruster;
Bikfalvi; Steffen;
Lay
Science Direct
2008
Verganti
Journal Of Product
Innovation
Management
2011
Verganti
Journal Of Product
Innovation
Management
Analyzing the articles identified in the mapping theory, it is clear that different
theories are discussed with respect to innovation and design. The theme
innovation is present in all studies pertaining to the mapping, being, in some cases,
restricted to the measurement of organizational innovation through scales
developed for this purpose (Armbruster, Bikfalvi, Kinkel, & Lay, 2008; Flight,
DSouza, & Allaway, 2011; Zhong and Ozdemir, 2010), innovation and teams in the
development of new products (Na and Boult, 2010; Nakata and Im, 2010),
integration of consumers towards the innovative process in the technology and
marketing way (Athaide and Klink, 2009; Carbonell, Rodrguez-Escudero, & Pujari,
2009) and innovation related with the strategy (Acklin, 2010; Chiva and Gay, 2009;
Kelley, 2009; Verganti, 2008; 2009).The representation of the design is understood
through the analysis of articles (Athaide and Klink, 2009; Carbonell et al., 2009; Na
and Boult, 2010; Nakata and Im, 2010) that address the role of enhancing the
formation of multidisciplinary teams and consumer involvement in the
development of new products. In a narrower sense, the design is also specifically
related to the form (style) of the product (Flight et al., 2011).
Although there is a relationship among the papers addressing the theme design,
the study is restricted to the papers that follow the design-driven innovation
approach (Acklin, 2010; Kelley, 2009; Chiva and Gay, 2009; Verganti, 2009; 2011). It
is understandable, therefore, the lack of studies that present, in an integrated
manner, the design as a driver for innovation. In this context, the next section takes
care of presenting the critical literature to the subject design-driven innovation.
Design-driven Innovation
The design must provide the various stages involved in the development of a
new product or service. The companies find in design a means for differentiation
and success, achieving significant competitive outcomes by adopting this strategy
(Ardayfio, 2000; Utterback, 2007).
The designer develops artifacts thinking beyond the object, but based on a
delivery system known as "product-system" (see in figure 1). According to Mozota
(2003), the design is a macro process that, in the corporate structure, impacts on
the operational level (the project), on the organizational level (department), on the
strategic level (mission) and on different existing areas, making it a relevant
resource to organizational management (Walton, 2000).
7
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Design Management
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the author(s). Permission is granted to reproduce copies of these works for purposes relevant
to the above conference, provided that the author(s), source and copyright notice are included
on each copy. For other uses, including extended quotation, please contact the author(s).
It seems, when analyzing the figure, that the innovation by design permeates
the classification of radical and incremental and is directly related to the generation
of new meanings. For the author, there are three types of innovation:
a) innovation pushed by technology it is a process that results of technological
research.
b) Innovation pushed by the market - part of the analysis of user needs, which
later turns to technological and language research that can actually satisfy you.
c) Innovation by design - starting from the understanding of subtle and
intangible aspects present in the sociocultural context, resulting in new productsservices with radical languages and meanings. It is characterized as: i) an
investigation into network; ii) embracing, acting outside the bounds of the
company; iii) based on knowledge sharing (sociocultural models, meanings and
languages); iv) influential and modifier of the sociocultural system.
Accordingly, firms practicing design-drive innovation, should be aware that the
main difference is that innovations are designed to provide a consumer experience
to end customers (Verganti, 2009). Humans consume by strong emotional,
psychological and sociocultural reasons. Therefore, organizations and individuals
may have different ways of relating to innovation (Hippel, 2009 apud Hall and
9
10
1
ORGANIZATIONAL
INNOVATION
Concept
Attributes for the
construction of an
innovative
organization
Variable
- Management
of the
innovation
process
Classification and
types of
innovation
Representation of
the design
-Incremental
-Radical
-Product
-Process
-Culture of
innovation
-Culture of
Creativity
- The role of
design
Strategic Design
- Product-system
Design thinking
-External
partnership
-Relationship
between
innovation and
design
-Stages of the
innovation
process using
design
-Project of
design in the
innovation
process
Consolidation of
innovation culture
2 INNOVATION
AND DESIGN
Design-driven
innovatio
Principal Authors
Martin and Morich
(2011); Tidd, Bessant
and Pavitt (2008);
Manual de Oslo (OECD,
2007); Van Der Meer
(2007); Fetterhoff and
Voelkel (2006).
Manual de Oslo (OECD,
2007); Henderson and
Clark (1990).
Acosta, et al. (2012);
Barbieri and lvares
(2003); Kelley (2001).
Martin (2005); Mozota
(2003); Walton (2000);
Cross (1982).
Viera (2009); Zurlo
(2006);
Brown (2010).
Franzato (2011); Hippel
(2009 apud Hall;
Rosenberg, 2010);
Verganti (2009) and
(2008); Utterback
(2007); Ardayfio (2000).
The survey includes companies with different characteristics and realities. Thus,
it is important to define the variables that will guide the analyzes relevant to the
practical study. Because these analyzes pervade the discussion of the innovation
process and the impact of the design in this process, it was decided to adopt the
11
The model adopted assists in the analysis and discussion of concepts and
variables relevant to this study because it considers the analysis of the design
process with innovation as the center of this process, thus allowing us to evaluate if
the organization works with design driven innovation; if the companies work with a
culture of innovation that has the central role in the development of new products
or processes and, in addition, if design projects that go through the four key stages
to reach innovation are adopted in practice, generating a continuous cycle, and
working with innovation and design in an associated way.
12
Methodology
The objective of this paper is to analyze the role of design in innovation
processes in companies recognized nationally as innovative, so the study is
characterized as exploratory, the most appropriate type of research, because it
allows the exploration and the search for understanding some phenomena
underexplored and it is characterized by flexibility and versatility with respect to
methods (Aaker, Kumar, & Day, 2007). The research was divided into five phases
(Figure 4).
Quantitative Research
The quantitative survey covered several topics that discuss the relationship
between innovation and design. It was also attempted to understand if companies
develop innovation and what kind of innovation is present in each one of them.
Regarding the design, the analysis was based on the comprehension of the
concept, the understanding, the use and the role of design in the organization.
The organizations evaluated the relevance of various aspects related to the
innovation process. Analyzing the overall response of the seventeen companies,
there is no question, as described below, of what was classified as totally irrelevant
or irrelevant, according to Table 3.
15
Indifferent
Relevant
Totally
Relevant
5,9%
47,05%
47,05%
100%
(N=1)
(N=8)
(N=8)
(N=17)
Culture for
innovation
and creativity
29,4%
70,6%
100%
(N=5)
(N=12)
(N=17)
Market
analysis and
understandin
g of the needs
41,2%
58,8%
100%
(N=7)
(N=10)
(N=17)
Development
(R&D)
47,1%
52,9%
100%
(N=8)
(N=9)
(N=17)
Strong
management
of the
innovation
process
Irrelevant
Total
Participation
of various
areas/sectors
5,9%
47,05%
47,05%
100%
(N=1)
(N=8)
(N=8)
(N=17)
External
support and
partnership
23,5%
29,4%
47,1%
100%
(N=4)
(N=5)
(N=8)
(N=17)
Participation
of the end
customer
5,9%
41,2%
52,9%
100%
(N=1)
(N=7)
(N=9)
(N=17)
It is apparent, according to the results, that the main aspect for generating
innovation consists of a culture for innovation and creativity to culture. Providing
leverage of creativity, it is believed that the culture for innovation is considered a
key element in companies (Barbieri, & lvares, 2003; KELLEY, 2001).
16
No
Not
answe
red
58,8%
(N=10)
29,4%
11,8%
100%
(N=5)
(N=2)
(N=17)
47,05%
47,05%
5,9%
100%
(N=8)
(N=8)
(N=1)
(N=17)
55,9%
41,2%
5,9%
100%
(N=9)
(N=7)
(N=1)
(N=17)
35,3%
58,8%
5,9%
100%
(N=6)
(N=10)
(N=1)
(N=17)
82,3%
17,7%
(N=3)
0%
100%
(N=0)
(N=17)
Development of products
services tailored to customers
and
(N=14)
Total
18
Table 5 Single Frequency: tools used for the design of a product / service
Yes
Not answered
Total
23,5% (N=4)
76,5% (N=13)
100%(N=17)
64,7% (N=11)
35,3% (N=6)
100%(N=17)
Information of suppliers of
equipment, materials, components
and software
41,2% (N=7)
58,8% (N=10)
100%(N=17)
64,7% (N=11)
35,3% (N=6)
100%(N=17)
58,8% (N=10)
41,2% (N=7)
100%(N=17)
Consulting services
52,9% (N=9)
47,1% (N=8)
100%(N=17)
17,7% (N=3)
82,3% (N=14)
100%(N=17)
Consultations
patents
17,7% (N=3)
82,3% (N=14)
100%(N=17)
0% (N=0)
100% (N=17)
100%(N=17)
23,5% (N=4)
76,5% (N=13)
100%(N=17)
41,2% (N=7)
58,8% (N=10)
100%(N=17)
52,9% (N=9)
47,1% (N=8)
100%(N=17)
Research
analysis
technological
64,7% (N=11)
35,3% (N=6)
100%(N=17)
socio-cultural
17,7% (N=3)
82,3% (N=14)
100%(N=17)
23,5% (N=4)
76,5%(N=13)
100%(N=17)
35,3% (N=6)
64,7%(N=11)
100%(N=17)
the
industrial
Participation of investors
Analysis
context
and
of
the
19
Table 6 Correlation between variables: the role of design in your company and the
development of innovation
The role of design in your company * Develop innovation
Total
Develop
innovation
Yes
No
Fundamental
Significant
Limited
Not important
15
17
Total
Table 7 Correlation between variables: a strategic tool for business (for differentiation) and
design in your company
A strategic tool for business (for differentiation) * The design in your company
Design in your company
Rompe
market
standards
Operates from
standard
model of
product in the
market
Total
Yes
12
Total
12
The framework then evaluates the relationship between the importance given
to the culture of innovation and creativity and the perception of design in the
organization. It can be seen that among the nine companies that consider the
culture for innovation totally relevant, 55,6% (N=5) operate from the standard
model of product in the market. This issue reinforces the distance between the
speech of the importance of innovation culture and the actions developed in
practice Table 8.
Table 8 Correlation between variables: culture for innovation and creativity and
design in your company
Culture for innovation and creativity * Design in your company
Design in your company
Rompe
market
standards
Operates from
standard model
of product in the
market
Total
Relevant
Totally
relevant
Total
15
21
Innovation
Design
Companies that
innovate
Culture for innovation
and creativity
Have Patents
Developed Innovations
in partnership
Develops custom
product or service
Considers design
Design is a strategic
fundamental or
tool
significant
Relates design to
product form (style)
This section aims to describe the role of design and how it translates action into
practice, regarding the innovative processes. Accordingly, the next section was
developed in order to present the data obtained from the qualitative research,
done to analyze the existence of design-driven innovation in the context of specific
organizations.
Qualitative Research
The qualitative research was necessary because of the goal to deepen the
results obtained on the previous stage. With this next stage, there was the
possibility to deepen the concepts of design oriented innovations in the practical
context of the companies. For this, we brought up topics such as the building of an
innovative organization, culture for innovation, types of innovation and innovation
and design, as described below.
23
In most cases, the workers that had their ideas accepted and used received an
extra payment.
Alpha, Beta and Delta companies all have a channel with universities. With
Alpha, it is through an innovation award based on engineering and design
competitions. Beta also develops an innovation competition, which happens every
24
year and involves architects, young dcor and architecture professionals and young
students. Delta, on the other hand, had an online competition, in which consumers
talked about their dreams for the future, and this was the input for the
development of a new product. Next, we present a synthesis of the analysis of the
innovation process regarding the three studied organizations (Table 9).
Table 9 Synthesis of the Analysis of the Innovation Process
Company
Alpha
Beta
Delta
-The process was - Fully established - Has a global level
structured in 2000;
process - funnel of innovation process;
ideas and stage- Holds a program
Variable of
- Fully established gate;
analysis
process - funnel of
for the creation of
(management of
ideas and stage-gate; - Holds a program ideas;
the innovation
for the creation of
- Has partnerships
process)
Holds
a ideas;
with
external
differentiated
program for the - Promotes internal agents.
creation of ideas;
events for the
creation
of
- Has partnerships innovation;
with external agents.
- Has partnerships
with
external
agents.
I use to say that, if you try to explain our area by metaphors, we would be the
conductors that would say now is the time to play this instrument, that one, that
other one and, at the end, this is the music, a merit of everyone, that happens in
the group.
There is an area for innovation at Alpha, which is the base for the development
of the innovative process. This is an area dedicated to thinking about the processes,
the result, the mindset and the culture for innovation. According to the responsible
for this area, we do not implement innovation, we just incite it. But it happens in
areas such as product development and new businesses.
Different authors reinforce that the building of a design oriented innovation
process is born from the building of interdisciplinary teams (Brown, 2010; Kelley,
2001; Verganti, 2009). Thus, working with teams with different backgrounds has a
26
Variable of
analysis
(culture for
innovation;
culture for
creativity)
Alfa
-1/3 of the revenue
comes
from
innovative products;
Beta
-22% of the revenue
comes from innovative
products;
Delta
- Executives have
one
innovative
goal per year;
- Executives have
one innovative goal
per year;
Has
an
innovation area
responsible to find
resources for the
projects;
Has
patents.
58,600
We believe that radical innovation comes with the innovation culture. It is not
possible to say, for instance, next month we will make a radical innovation [].
Thus, developing a rupture is not so uneventful, even because, in most radical
innovations, the costs and the risks are higher.
27
Alpha
- Product, service,
channel
and
business;
- Imprvement and
radical innovation
(based on goals).
Beta
- Product, service,
channel and business;
Delta
-Product and
process;
- Improvement (on a
higher level) and radical
innovation.
- Improvement
(on a higher
level)
and
radical
innovation.
started to be developed and, ever since, the concept of strategic design has been
disseminated (Zurlo, 2006).
Beta company works with design mostly because it believes that there are
design methodologies, like design thinking, which are forms of creating ideas and
developing innovation thinking about the process as a whole. The organization
believes that design is relevant to help the innovative process regarding market
issues of the products. In other words, the design professionals are concerned
about aspects that the engineers and technicians in general put aside, as these are
not part of their area.
Opposing the presented concepts, Delta believes that, due to the fact that the
company sells energy and technology related projects, design is not directly
associated with innovation. Only some sectors in which the organization acts work
with design concepts, but it is not the case of the unity considered in this study.
As analyzed, the studied companies believe design is a tool responsible for
supporting the innovation process. When asked about how design oriented
innovation happens on a practical level, Alpha and Beta believe that design is an
influence for the creation of ideas, the improvement of these ideas and the
concern about the development process of the complete product. For example,
Beta makes the horizontal management of its projects, meaning there is a
responsible person of each area for every project, which allows the focus of the
product not to be only about technical aspects.
Alpha mentions that designers think differently from people who work with
technology, because they abandon the technological look in favor of a more market
driven work. They believe technology is only a solution; therefore, in the innovation
area, there is always space for the design projects. As the interviewee says,
innovation is linked to design. Our focus is what we deliver to the consumer, and
design goes along with this atmosphere. We start from the consumer and
technology helps us turn the ideas into something concrete.
To bring context to this way of working, which values, besides the technological
aspects, a humanistic approach to the development of innovation, we found the
following example of innovation commercialized by Alpha. Alpha Independent is
a product line developed after representatives of the innovation and design area
followed the daily routine of people with physical disabilities, visual and hearing
impairment. They comprehended the main difficulties in handling household
appliances. This served as an input for the creation. The goal was for the users to
have a better interaction with the appliances.
29
A
- Design helps
innovation
considering
market issues of
the products;
B
- Design helps
innovation
considering
market issues of
the products;
- Has design
projects in the
innovation
process;
- Has design
projects in the
innovation
process;
- Works with
system-product;
- Works with
system-product;
- Uses design
thinking.
- Uses design
thinking.
C
- The company
works this concept
only in some
unities, which are
not included in the
study;
- Pushed by
technology.
30
Global Analysis
Summarizing the results obtained during the qualitative research, we
comprehend that most companies see the design directly related to the form of the
product (style), which indicates a limited perception as for the use of design in the
innovation process. However, there is a comprehension regarding the importance
of design as an element for the business strategy, influencing on the development
of a creative thinking process.
The organizations consider that design has a fundamental or significant role;
eight companies responded that more than 40% of the products released in the last
two years incorporated design projects. It is also noteworthy that the analysis of
the clients necessities is seen as a fundamental tool for the design of a
product/service, which is related to the results we got during the qualitative
research, pointing out that consumers are considered the center of the innovation
process. Considering the qualitative analysis, Exhibit 18 summarizes the process of
individual innovation of the organizations studied and the role of design in each
stage of this process.
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Figure 6 Synthesis of individual and global innovation processos and design level
used
Final Remarks
The main goal of this study was to identify the role of design in the innovation
process of the companies, using quantitative and qualitative research methods,
which are justifiable once the first gave a broad vision of the theme, deepened by
the second method. We would like to highlight that in the quantitative phase
seventeen companies were researched; four belong to the ranking As Mais
Inovadoras do Brasil da Revista poca Negcios de 2011 and the others are
32
References
Aaker, D. A., Kumar, V. & Day, G. S. (2007). Marketing Research (9nd ed.).
Nova York, NY: John Wiley & Sons.
Acklin,
C.
(2010).
Design-Drive
Innovation
Design Management Journaly, 5(1), 50-60.
Process
Model.
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