Innovation Management in Startups vs. Established Firms

Abstract

Innovation has become essential to the growth of current organizations, allowing them to respond flexibly to unstable marketplaces, evolving customer demands, and increased competition in a global economy. While both startups and established organizations recognize the importance of innovation, they manage it in very different ways. Startups, which are typically characterized by their agility, limited resources, and entrepreneurial nature often pursue disruptive innovations that challenge incumbents' position in an industry. Established organizations, on the other hand, leverage their resources, established processes, and brand recognition to pursue incremental, sustainable innovation. This study reviews the theoretical foundations, organizational characteristics, and strategic practices of innovation management in startups and established organizations. Through a comparative literature review supported by real cases from practice, the article explores the specific advantages of, and challenges faced, by firm type in innovation management, while also considering hybrid models for innovation management namely, corporate venture capital, and accelerators. The dialogue ends with suggestions for facilitating innovation across contexts and considerations at the end of innovation management in a world defined by digital transformation, sustainability, and global cooperation.