The Role of Marketing Activities in the Fuzzy Front End of Innovation: A Study of Small- to Medium-Size Enterprises in the Biotech Industry

Abstract

The purpose of this study is to understand the extent to which marketing efforts help the survivability of early-stage innovations. The locus between the phases of Research and Development (R&D) and New Product Development (NPD) is defined as the Fuzzy Front End of Innovation (F²EI). Frequently called the "Valley of Death," this early stage of innovation is typified by high risks and scarcity of project resources. The challenge for a firm as it develops an early-stage innovation is securing adequate financial, human, and physical project resources. For this study, the focus is specifically on National Institutes of Health (NIH) licenses accorded to small- to medium-size firms.

By using a mixed-method approach comprising qualitative interviews and quantitative survey results, this study develops firm profiles that describe combinations of marketing efforts that enable innovation continuation during the Fuzzy Front End of Innovation. Profiles are evident in terms of marketing variables, firm attributes, and project resources. These profiles vary for type of firm and also by the firm's life cycle.

The contributions of this study are to: 1.) Develop combinations of variables and profiles for predicting early-stage innovation continuation, 2.) Provide pragmatic information to potential stakeholders about how to identify and foster early-stage innovations, and 3.) Help small- to medium-size firms understand how to position and promote themselves in order to obtain resources and advance early-stage innovations.