Transformative dynamics of innovation and industry: new roles for employees?

Organizing for innovation is becoming increasingly important for boosting national competitiveness and job creation, but is also becoming much more complex to do properly. The dynamics of innovation are undergoing profound changes, becoming globally distributed and involving more employee groups in corporations. This evolution is a radical change from the previous pattern of innovation, which we call the Chandlerian Innovation System. This article starts by briefly characterizing the post-war Chandlerian Innovation System, and then discusses the reasons why it is breaking up by exposing some of its pitfalls and contradictions. The article then proceeds to discuss how novel arrangements are emerging to create a global Networked Innovation System. Finally, the article suggests how employees, trade unions and political reformers may act to involve all groups of employees in new forms of work organization so they can take on a role as 'drivers' of innovation.