Foundations of the Theory of Innovation Failure : Theoretical Structure and Evidence

In this paper, a theory of innovation failure is proposed clarifying concepts and relationships between elements underlying a system failure of innovation. Theoretical framework suggests that three basic concepts each of which is a constituent element of the next in the following hierarchical increasing order: faults >errors> failure. In particular, fault is caused by misleading modes of cognition and action that lead, with other elements, to an error in a system. Error is caused by a set of faults that changes or alters the behavior of the system, decreasing the expected results. Finally, failure is caused by a set of errors that leads to a deviation of the system from its main objectives. Strategies of failure management for innovation projects are suggested and based on conceptual approaches of adaptation and learning . It seems to us that the proposed theory of innovation failure is particularly useful to R&D managers, designers making design choices, innovation developers, etc. in grasping the correlation between minor faults leading to main errors and consequential total or partial failure of projects of innovation. Some examples of application of theory of innovation failure are from spaceship accidents in aerospace missions