{"id":25640,"date":"2026-03-03T22:26:36","date_gmt":"2026-03-03T20:26:36","guid":{"rendered":"https:\/\/pointofnew.at\/glossary\/innovation-strategy\/"},"modified":"2026-03-06T15:43:19","modified_gmt":"2026-03-06T13:43:19","slug":"innovation-strategy","status":"publish","type":"page","link":"https:\/\/pointofnew.at\/en\/glossary\/innovation-strategy\/","title":{"rendered":"Innovation Strategy"},"content":{"rendered":"<div class=\"glossary-tldr\" style=\"background:#f0f1f3;padding:20px 24px;margin:24px 0;border-radius:12px;\">\n<strong>Key takeaways:<\/strong> The innovation strategy determines the fields in which a company innovates, how aggressively it proceeds, and which resources are invested. It connects corporate strategy with <a href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-management\/\" style=\"color:#1a5276;text-decoration:none;\">innovation management<\/a> and ensures that innovation activities contribute specifically to growth and competitive advantages.\n<\/div>\n<nav class=\"glossary-toc\" style=\"background:#f9f9f9;padding:20px 24px;margin:24px 0;border-radius:8px;border:1px solid #e2e2e2;\">\n<strong>Table of Contents<\/strong><\/p>\n<ol>\n<li><a href=\"#definition\">Definition: What is an innovation strategy?<\/a><\/li>\n<li><a href=\"#typen\">Types of innovation strategies<\/a><\/li>\n<li><a href=\"#elemente\">The 5 core elements of an innovation strategy<\/a><\/li>\n<li><a href=\"#entwickeln\">Developing an innovation strategy: step by step<\/a><\/li>\n<li><a href=\"#kmu\">Innovation strategy for SMEs<\/a><\/li>\n<li><a href=\"#fehler\">Avoiding common mistakes<\/a><\/li>\n<li><a href=\"#faq\">Frequently Asked Questions<\/a><\/li>\n<\/ol>\n<\/nav>\n<h2 id=\"definition\">Definition: What is an innovation strategy?<\/h2>\n<p>An innovation strategy is a structured plan that defines how a company aims to achieve competitive advantages through innovation. It answers three key questions: <strong>Where<\/strong> do we innovate (search areas and innovation fields)? <strong>How<\/strong> do we innovate (methods, partnerships, investments)? <strong>Why<\/strong> do we innovate (strategic objectives and expected impact)? <\/p>\n<p>The innovation strategy is the link between the overarching corporate strategy and operational <a href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-management\/\" style=\"color:#1a5276;text-decoration:none;\">innovation management<\/a>. Without it, there is no direction: companies spread themselves too thin across too many projects, invest in the wrong topics, or innovate without market relevance. <\/p>\n<p>A good innovation strategy is not a rigid plan, but a dynamic framework that is reviewed regularly and adapted to new insights\u2014ideally based on <a href=\"https:\/\/pointofnew.at\/en\/glossary\/okr-objectives-and-key-results-2\/\" style=\"color:#1a5276;text-decoration:none;\">OKR<\/a> cycles.<\/p>\n<h2 id=\"typen\">Types of innovation strategies<\/h2>\n<p>Companies can adopt different strategic stances toward innovation:<\/p>\n<ul>\n<li><strong>Offensive (first mover):<\/strong> The company aims to be first to market. High investment in research and development, high risk, but also high return potential. <\/li>\n<li><strong>Defensive (fast follower):<\/strong> Observe what works and then follow quickly\u2014through better execution or a lower price.<\/li>\n<li><strong>Incremental:<\/strong> Continuous, step-by-step improvement of existing products and processes.<\/li>\n<li><strong>Disruptive:<\/strong> Targeted attacks on established markets with radically new approaches (<a href=\"https:\/\/pointofnew.at\/en\/glossary\/disruptive-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">\u2192 Disruptive innovation<\/a>).<\/li>\n<li><strong>Exploratory:<\/strong> Systematically exploring new business areas and <a href=\"https:\/\/pointofnew.at\/en\/glossary\/business-model-patterns\/\" style=\"color:#1a5276;text-decoration:none;\">business model patterns<\/a> beyond the core business.<\/li>\n<\/ul>\n<p>In practice, many companies combine multiple approaches: incremental innovation in the core business and exploratory innovation for new growth areas\u2014the concept of &#8220;ambidexterity.&#8221;<\/p>\n<h2 id=\"elemente\">The 5 core elements of an innovation strategy<\/h2>\n<h3>1. Innovation fields and search spaces<\/h3>\n<p>Definition of the areas in which the company actively searches for innovation opportunities. These are derived from the corporate strategy, market trends, and <a href=\"https:\/\/pointofnew.at\/en\/glossary\/customer-journey\/\" style=\"color:#1a5276;text-decoration:none;\">customer needs<\/a>. <\/p>\n<h3>2. Innovation ambition and portfolio mix<\/h3>\n<p>How is the innovation budget allocated? The common rule of thumb (70-20-10): 70% for core innovation (improving existing products), 20% for adjacent innovation (new markets or technologies), 10% for transformative innovation (entirely new <a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">business models<\/a>). <\/p>\n<h3>3. Methods and processes<\/h3>\n<p>Which innovation methods are used? <a href=\"https:\/\/pointofnew.at\/en\/glossary\/design-thinking\/\" style=\"color:#1a5276;text-decoration:none;\">Design Thinking<\/a>, <a href=\"https:\/\/pointofnew.at\/en\/glossary\/lean-startup\/\" style=\"color:#1a5276;text-decoration:none;\">Lean Startup<\/a>, <a href=\"https:\/\/pointofnew.at\/en\/glossary\/open-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Open Innovation<\/a>? How is the <a href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-process\/\" style=\"color:#1a5276;text-decoration:none;\">innovation process<\/a> structured? <\/p>\n<h3>4. Resources and organization<\/h3>\n<p>How much budget and staff are allocated to innovation? How is innovation anchored organizationally\u2014centrally, decentrally, or as a lab? <\/p>\n<h3>5. KPIs and governance<\/h3>\n<p>How is the success of the innovation strategy measured? Typical KPIs: revenue share of new products, innovation pipeline value, time-to-market, number of validated business ideas. <\/p>\n<h2 id=\"entwickeln\">Developing an innovation strategy: step by step<\/h2>\n<ol>\n<li><strong>Clarify the strategic context:<\/strong> Which corporate objectives should innovation support? Which megatrends and market changes are relevant? <\/li>\n<li><strong>Analyze the status quo:<\/strong> Where does your innovation capability stand today? Use a <a href=\"https:\/\/pointofnew.at\/en\/glossary\/swot-analysis\/\" style=\"color:#1a5276;text-decoration:none;\">SWOT analysis<\/a> and assess your <a href=\"https:\/\/pointofnew.at\/en\/glossary\/digital-maturity\/\" style=\"color:#1a5276;text-decoration:none;\">digital maturity<\/a>. <\/li>\n<li><strong>Define innovation fields:<\/strong> Identify 3\u20135 strategic innovation fields based on market opportunities, technology trends, and core competencies.<\/li>\n<li><strong>Define the portfolio mix:<\/strong> Decide on the balance between core, adjacent, and transformational innovation.<\/li>\n<li><strong>Select methods and processes:<\/strong> Establish suitable innovation methods and a clear <a href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-process\/\" style=\"color:#1a5276;text-decoration:none;\">innovation process<\/a>.<\/li>\n<li><strong>Allocate resources:<\/strong> Secure budget, time, and capabilities for innovation activities.<\/li>\n<li><strong>Define KPIs:<\/strong> Make innovation measurable and manage it through <a href=\"https:\/\/pointofnew.at\/en\/glossary\/okr-objectives-and-key-results-2\/\" style=\"color:#1a5276;text-decoration:none;\">OKR<\/a> cycles.<\/li>\n<\/ol>\n<h2 id=\"kmu\">Innovation strategy for SMEs<\/h2>\n<p>Special principles apply to <a href=\"https:\/\/pointofnew.at\/en\/glossary\/sme-digitization\/\" style=\"color:#1a5276;text-decoration:none;\">small and medium-sized enterprises<\/a>:<\/p>\n<ul>\n<li><strong>Focus instead of breadth:<\/strong> SMEs cannot innovate in all areas at the same time. Focus on 2\u20133 innovation fields where you have real strengths. <\/li>\n<li><strong>Customer proximity as a competitive advantage:<\/strong> Direct customer contact is your strongest source of innovation\u2014use <a href=\"https:\/\/pointofnew.at\/en\/glossary\/jobs-to-be-done-jtbd\/\" style=\"color:#1a5276;text-decoration:none;\">Jobs-to-be-Done<\/a> interviews and <a href=\"https:\/\/pointofnew.at\/en\/glossary\/customer-journey\/\" style=\"color:#1a5276;text-decoration:none;\">Customer Journey Mapping<\/a>.<\/li>\n<li><strong>Lean and agile:<\/strong> Rely on fast experiments instead of long planning phases. <a href=\"https:\/\/pointofnew.at\/en\/glossary\/lean-startup\/\" style=\"color:#1a5276;text-decoration:none;\">Lean Startup<\/a> and <a href=\"\/glossar\/prototyping\/\" style=\"color:#1a5276;text-decoration:none;\">Rapid Prototyping<\/a> are ideally suited to the SME reality.<\/li>\n<li><strong>Leverage the ecosystem:<\/strong> Collaborate with universities, startups, and industry networks (<a href=\"https:\/\/pointofnew.at\/en\/glossary\/open-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Open Innovation<\/a>).<\/li>\n<li><strong>Management as the driver of innovation:<\/strong> In SMEs, innovation requires clear commitment from the top.<\/li>\n<\/ul>\n<h2 id=\"fehler\">Avoiding common mistakes<\/h2>\n<ul>\n<li><strong>Innovation without strategy:<\/strong> Random projects instead of targeted search areas lead to wasted resources.<\/li>\n<li><strong>Too many innovation fields:<\/strong> Focus beats breadth\u2014better to serve a few fields excellently.<\/li>\n<li><strong>Only incremental innovation:<\/strong> Those who only improve existing products miss disruptive opportunities.<\/li>\n<li><strong>Strategy without execution:<\/strong> The best strategy is worthless without resources, processes, and <a href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-culture\/\" style=\"color:#1a5276;text-decoration:none;\">culture<\/a>.<\/li>\n<li><strong>No learning process:<\/strong> The innovation strategy must be reviewed regularly and adapted.<\/li>\n<\/ul>\n<div class=\"glossary-cta\" style=\"background:linear-gradient(135deg,#1e3a5f,#2563eb);padding:32px;border-radius:12px;margin:32px 0;color:#fff;text-align:center;\">\n<h3 style=\"color:#fff;margin-top:0;\">Develop your innovation strategy?<\/h3>\n<p style=\"color:#f0f0f0;font-size:1.05em;\">We support you in developing a focused innovation strategy\u2014from analysis through to implementation.<\/p>\n<p><a href=\"https:\/\/pointofnew.at\/en\/business-model-innovation-services\/\" style=\"display:inline-block;background:#fff;color:#667eea;padding:14px 32px;border-radius:8px;text-decoration:none;font-weight:600;margin-top:8px;transition:transform 0.2s;\">Discover Our Services \u2192<\/a>\n<\/div>\n<div class=\"glossary-faq-accordion\" itemscope=\"\" itemtype=\"https:\/\/schema.org\/FAQPage\">\n<h2 id=\"faq\">Frequently Asked Questions (FAQ)<\/h2>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\"><span style=\"color:#666;font-size:0.8rem;\"><\/span> What is the difference between innovation strategy and innovation management?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<p itemprop=\"text\">The innovation strategy defines the &#8220;what&#8221; and &#8220;why&#8221;\u2014in which fields innovation takes place and which goals are pursued. Innovation management addresses the &#8220;how&#8221;\u2014the operational implementation through processes, methods, organization, and control. The strategy sets the direction, management implements it.  <\/p>\n<\/div>\n<\/details>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\"><span style=\"color:#666;font-size:0.8rem;\"><\/span> How often should an innovation strategy be reviewed?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<p itemprop=\"text\">The strategic direction should be reviewed at least annually and adjusted as needed. Operational innovation objectives and KPIs should be reviewed quarterly\u2014ideally as part of OKR cycles. In the event of major market changes or crises, an immediate review is advisable.  <\/p>\n<\/div>\n<\/details>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\"><span style=\"color:#666;font-size:0.8rem;\"><\/span> Do small companies also need an innovation strategy?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<p itemprop=\"text\">Yes\u2014especially small companies benefit, as they must use limited resources in a targeted way. An SME innovation strategy does not have to be 50 pages long: often a clear 2\u20133-page framework with defined innovation fields, methods, and objectives is sufficient. <\/p>\n<\/div>\n<\/details>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\"><span style=\"color:#666;font-size:0.8rem;\"><\/span> What does the development of an innovation strategy cost?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<p itemprop=\"text\">Costs vary depending on company size and complexity. For SMEs, the effort typically involves 2\u20134 facilitated workshop days plus preparation and follow-up. With external innovation consulting, \u20ac5,000\u2013\u20ac15,000 is realistic\u2014often partially covered by funding programs.  <\/p>\n<\/div>\n<\/details>\n<details style=\"background:#eaecee;border-radius:8px;padding:0;margin-bottom:0.75rem;\">\n<summary style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;list-style:none;\">What percentage of revenue should flow into innovation?<\/summary>\n<div style=\"padding:0 1.2rem 1rem 1.2rem;\">Industry benchmarks suggest allocating 5-10% of revenue to innovation for mature companies and 15-25% for growth-focused businesses. However, the split matters more than the absolute number \u2013 successful companies typically allocate 70% to core innovation, 20% to adjacent opportunities, and 10% to transformational bets. SMEs often start with 2-3% and increase as they build innovation capabilities and see returns from initial investments.<\/div>\n<\/details>\n<\/div>\n<h2>Related Terms<\/h2>\n<div style=\"display:flex;flex-wrap:wrap;gap:0.5rem;margin-top:0.5rem;\">\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-management\/\">Innovation Management<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-culture\/\">Innovation Culture<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-process\/\">Innovation Process<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-consulting\/\">Innovation Consulting<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"\/glossar\/geschaeftsmodell-innovation\/\">Business Model Innovation<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/disruptive-innovation\/\">Disruptive Innovation<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/design-thinking\/\">Design Thinking<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/open-innovation\/\">Open Innovation<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/okr-objectives-and-key-results-2\/\">OKR<\/a><br \/>\n<a style=\"display:inline-block;background:white;border:1px solid #d5d8dc;border-radius:20px;padding:0.4rem 1rem;margin:0.3rem;color:#1a5276;text-decoration:none;font-size:0.95em;\" href=\"https:\/\/pointofnew.at\/en\/glossary\/blue-ocean-strategy\/\">Blue Ocean Strategy<\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key takeaways: The innovation strategy determines the fields in which a company innovates, how aggressively it proceeds, and which resources are invested. It connects corporate strategy with innovation management and&hellip;<\/p>\n","protected":false},"author":1,"featured_media":24529,"parent":25140,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-25640","page","type-page","status-publish","has-post-thumbnail","hentry"],"featured_image_src":"https:\/\/pointofnew.at\/wp-content\/uploads\/2025\/07\/Point-of-New-Business-Model-Innovation-Benedikt-Hasibeder-scaled.png","_links":{"self":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/comments?post=25640"}],"version-history":[{"count":10,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25640\/revisions"}],"predecessor-version":[{"id":28292,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25640\/revisions\/28292"}],"up":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media\/24529"}],"wp:attachment":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media?parent=25640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}