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This book deals with the complex social process of managing an innovative organization. Jon Sundbo presents an original sociology-based theory of innovation in firms which combines developments in markets and other environments with internal organizational processes.

The fundamental concept of this theory is understanding innovation processes in the context of strategy. The author regards strategy as both an interpretation of environmental developments and an instrument for managing the innovation process. The book takes an evolutionary perspective and combines an 'out-in' approach (the market situation determines innovations) with an 'in-out' approach (internal organizational processes and entrepreneurship determine innovations). In both cases the implementation of strategy is closely studied and its role as a social process within the firm is emphasised. Significantly, the author combines economic and sociological factors and presents a series of models of the innovation process which are based on empirical studies. The book concludes with a model of macro-innovation factors.

Presenting an original theory of innovation within a strategic paradigm, this book will be required reading for all students and academics of economics and business, as well as management consultants and those interested in industrial organization.