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Innovation is crucial for competitive advantage and long-term success. Based on both theory and practice, this book develops a concrete, structured and practitioner-orientated code of practice that enables companies to understand their innovation system and encourage creativity at a strategic level. The process of innovation strategy formulation presented by Sauber and Tschirky is a major step toward turning an often chaotic innovation system into an innovation machine where creativity, efficiency and effectiveness are not contradictory requirements.