Exploring design-driven innovation : A study on value creation by SMEs in the Swedish wood products industry

Abstract: Design-driven innovation, focused on the innovation of product meanings, provides a new perspective to better understand the contribution of design to innovation. Additionally, it enables new opportunities for value creation. At small and medium-sized enterprises (SMEs) in the Swedish wood products industry there is a need for such new value creation in order to remain competitive. However, design-driven innovation is not yet common in this context. Furthermore, there is little research on the innovation of product meanings focused on value creation. Therefore, the aim of this research is to explore value creation through design-driven innovation, in the context of SMEs in the Swedish wood products industry. This research addresses what value might be expected from design-driven innovation, as well as what enables and hinders this value creation. To address the aim, three studies have been conducted which are described in four appended papers. The studies consist of one systematic literature review and two case studies. The findings demonstrate that design-driven innovation contributes to value creation by focusing on product meanings, which intentionally addresses both tangible and intangible needs and therefore increases the perceived value of products. This research identified five facets of design-driven innovation which provide a structure to discuss what enables and hinders value creation. These are: (1) understanding new product meanings, (2) knowledge generation, (3) actors and collaborations, (4) capabilities, and (5) process. The facets can be seen as the origin of both enablers and barriers to value creation through design-driven innovation, depending on how they are addressed. Moreover, this research suggests that whether or not value is created is further influenced by the SMEs, their networks and the context in which they operate.