Excerpt from Investigation of Make or Buy as a Measure in Innovation Research: A Pilot Study
I define the functional locus of innovation (l) as the location in which costs are incurred (and usually, the work performed) that are involved in the creation of an innovation. In turn, that locus an organization and/ or individual, is classified in terms of the functional relationship which it holds to the innovation at issue. Thus, if one is studying a sample of innovations impacting process machinery employed in a given industry, firms which use that machinery in production would be grouped in terms of that functional relationship into a user category, and manufacturers making the machinery would be grouped into a manufacturer category.
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