Data-Driven Innovation: What Is It

Accepted for Publication in IEEE Transactions on Engineering Management

19 Pages Posted: 2 Nov 2021 Last revised: 20 Jan 2022

See all articles by Jianxi Luo

Jianxi Luo

City University of Hong Kong (CityU)

Date Written: December 15, 2021

Abstract

The future of innovation processes is anticipated to be more data-driven and empowered by the ubiquitous digitalization, increasing data accessibility and rapid advances in machine learning, artificial intelligence, and computing technologies. While the data-driven innovation (DDI) paradigm is emerging, it has yet been formally defined and theorized and often confused with several other data-related phenomena. This paper defines and crystalizes “data-driven innovation” as a formal innovation process paradigm, dissects its value creation, and distinguishes it from data-driven optimization (DDO), data-based innovation (DBI), and the traditional innovation processes that purely rely on human intelligence. With real-world examples and theoretical framing, I elucidate what DDI entails and how it addresses uncertainty and enhance creativity in the innovation process and present a process-based taxonomy of different data-driven innovation approaches. On this basis, I recommend the strategies and actions for innovators, companies, R&D organizations, and governments to enact data-driven innovation.

Keywords: Innovation Process, Uncertainty, Creativity, Data Science, Machine Learning, Artificial Intelligence

JEL Classification: O31, O32, O33

Suggested Citation

Luo, Jianxi, Data-Driven Innovation: What Is It (December 15, 2021). Accepted for Publication in IEEE Transactions on Engineering Management, Available at SSRN: https://ssrn.com/abstract=3951983 or http://dx.doi.org/10.2139/ssrn.3951983

Jianxi Luo (Contact Author)

City University of Hong Kong (CityU) ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

HOME PAGE: http://https://www.cityu.edu.hk/stfprofile/jianxiluo.htm

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
66
Abstract Views
445
Rank
613,074
PlumX Metrics