The challenges of innovation capability building: Learning from longitudinal studies of innovation efforts at Renault and Volvo Cars

This paper describes two initiatives to develop the capabilities for innovation in two automotive firms, focusing on the efforts of individuals in their two missions: to manage an innovation portfolio and to systematically build capabilities for innovation. The research is based on longitudinal studies of two European car manufacturers and makes several contributions. First, it contributes to innovation capability theory by addressing the efforts undertaken by managers to develop the capabilities for innovation, underlining the need for political astuteness and a learning perspective. Second, it shows the challenges involved in large mature firms and the need for explicit management support.