A Reconsideration of Innovation Failure: Evidence from the Korea Innovation Survey

822-826This study aims to reconsider the perception of firms’ innovation failure. In an environment that constantly demands innovation, firms will experience various types of failure. However, failure for a firm is not always negative. The tactical knowledge and know-how accumulated from the experience of failure will lead to better innovation, which can have a positive impact on management performance. This study empirically analyzes Korean Innovation Survey (KIS) 2016 data. The results showed that firms that had experienced failure had better performances than those that did not. In addition, the key reason for failure was a lack of core competencies. Therefore, efforts should be made to build discriminative capabilities with experiences of failure as a lesson. Furthermore, it is necessary to use the synergy of the complementary role of non-technological innovation to overcome innovation trauma and improve performance