What is Innovation Strategy

The present context of the knowledge-based economy and society has brought with it relevant changes with respect to how innovation has been conceptualized and explained within companies themselves. This chapter sets out to present and discuss a taxonomy of effective mechanisms for a company to accessing technology and innovation, while understanding the importance of resources and technological competences in defining how to innovate, in line with the type of company (profile) and the strategy of the business. An integrating view of the dimensions of “why,” “who,” and “how” to innovate is suggested, with the intention of helping companies to make choices. The case study shows the technological trajectory of an SME in the Portuguese software industry, based on development R&D alone and in partnership, following an offensive strategy. This will enable it to acquire advanced technological capabilities and an innovative culture for success.