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This paper examines the institutional sources of innovation, with reference to the role of institutions in generating creativity within knowledge-intensive entertainment industry. Despite growing importance of innovation in the knowledge industry, including interactive games, the 'Informal' source of innovation has attracted relatively little attention. The authors have attempted to fill this gap with a comparative case study of indigenous UK and Korean online gaming firms. By closely looking at the idea exploration, generation and selection process where creativity plays a major role, they intend to find out why and how values and norms contribute to firm innovation. This paper shows that both Korean and UK's firm value, regardless of their different socio-economic contexts, plays an important role in generating innovation.
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