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Innovation with effectuation : conceptual discussion and a case study

Stage-gate models focusing on the provider’s R&D have been the norm in innovation processes. These models rely on strong pre-planning which is not compatible with the main issue of innovation: tackling the unknown. In this paper, we seek alternative approaches. We suggest that the broad view of innovation with its focus on learning by doing, using and interacting (DUI) provides a fruitful starting point. Combining it with the views of service-dominant logic (SDL) enables a deeper analysis of the collaborative nature of value creation and innovation. At the process level, the effectual approach is compatible with SDL and DUI: it highlights shared experience to solve problems whose answers are not visible beforehand. Thus, we consider it as a promising alternative for stage-gate models. We illustrate our arguments with a case study in the public sector. We describe an ‘effectualtype’ innovation process in which a city administration collaborates with initiative citizens groups.