Innovation in the Port Sector: Does It Follow a Linear or System Process?

Innovation is imperative in sustaining the competitiveness of the port industry. While the transportation industry has made considerable progress during the past decades in an effort to remain competitive in an era of sophistication, the port sector seems to be lagging. The two major streams of innovation theory suggest that fact may be due to either a lack of capabilities (linear theory) or a malfunction in the innovation system (evolutionary theory or systems of innovation). The present analysis takes advantage of a large number of case studies (75) to identify patterns in the innovation process, which support success in terms of meeting objectives. In this context, four basic hypotheses are tested concerning: (1) The importance of capabilities (external knowledge and financing); (2) The accord of all actors involved; (3) The importance of market push; and (4) The ability of the innovation champion to influence actors and outcome. These hypotheses reflect on the basic theoretical underpinnings of innovation uptake. Qualitative analysis indicated that the three latter hypotheses were valid, suggesting that the systems of innovation approach may be more appropriate in supporting innovation in the port sector and, therefore, guiding innovation initiators and port policy makers in their strategy and efforts with respect to innovation.