Does sticky information affect the locus of innovation? Evidence from the Japanese convenience-store industry

Scholars have long discussed the locus of innovation and its determinants. There is empirical evidence that innovations can be developed by those holding any of a number of 'functional' relationships to them such as manufacturers, users, or materials suppliers. Past studies have considered two factors important in predicting the functional locus of innovation. One is 'expected profit of a player involved in the innovation' and the other is 'stickiness of innovation-related information'. Although some studies have shown empirically the link between an innovator's expected profits and the locus of innovation, no research has yet been conducted to test the hypothesized relationship between stickiness of innovation-related information and the locus of innovation. In the study reported upon here, I explore relationships between these two variables via a study of 24 innovations for the Japanese convenience-store industry. My study shows empirically that stickiness of innovation-related information does have the hypothesized relationship to the functional locus of innovation. I discuss implications of these findings and some directions for future research. (C) 1998 Elsevier Science B.V. All rights reserved.