During the initial wave of the COVID-19 pandemic in spring 2020, the story about an innovative hack, which saved lives by turning scuba masks into ventilators, received a lot of public attention. In light of shortages of ventilators, the head physician of an Italian hospital came up with the scuba mask idea and got in touch with 3D printing experts at the Italian company Isinnova. The idea was to make a 3D printed adapter that enabled the hospital to turn a snorkeling mask into a mask for oxygen therapy in case of severe COVID-19. In this regard, the hospital could use snorkeling masks that were already available at the sports chain Decathlon.
The inventors emphasize that this solution should only be used under emergency conditions because it is an uncertified medical product. Of course, it is not a perfect long-term solution, but it fulfilled the intended function in extraordinary times. Beyond this specific example, this story underscores the need for innovation in order to cope with the economic consequences of the coronavirus pandemic. Currently, many firms could
benefit from innovation, for example to simplify processes, to offer new digital solutions to their customers etc. However, many companies now have only very limited budget and time for these innovation activities. Accordingly, this situation puts the topic of innovating with scarce resources on top of the agenda.
Excess resourcesOverall, there is a long history of innovation research with regard to the relationship between resources, such as budget and time, with innovation outcomes. Basically, prior research suggests that companies may successfully innovate because and not despite different levels of resources. With regard to excess resources, there is the concept of slack resources, i.e. resources that are in excess of the minimum necessary for achieving a certain output. A classic example for an innovation that was developed with such slack resources are 3M's Post-It notes. In a similar vein, selected technical employees at Google spend some 80 percent of their available time on the main business and some 20 percent on other initiatives that they select on their own. These '20 percent projects' led to various new products, including Gmail and Adsense.
Limited resourcesWith regard to limited resources, there is research and anecdotal evidence about the positive effects of resource constraints in innovation. In this regard, fewer resources may stimulate rather than impede innovation. A well-known example here is GE Healthcare’s electrocardiograph MAC 400, which democratized access to medical care. The engineers had only 18 months and a relatively limited budget in order to come up with a high-tech portable device that enabled very low-cost scans. This challenging situation strengthened the team’s focus and creativity, which led to a successful outcome. However, these positive effects of resource constraints do not always materialize, but only under certain conditions.
TargetOne key condition for positive effects of resource constraints on innovation is that the limited resources actually lead the development team to direct all activities to a very clear target. Usually, a strong vision and purpose for this type of development project helps companies to profit from limited resources in innovation. Under such conditions, it is impossible to pursue additional options or side activities. Rather, the constrained resources may help to focus all attention and activities on the core target of the project.
ThinkingAnother major condition for positive consequences of limited resources is the innovative thinking of individuals and the entire development team. In fact, resource constraints may spur the creativity of key inventors and of all other team members. In the context of a growing importance of artificial intelligence, resource constraints may also lead to a more effective combination of human intelligence and artificial intelligence in order to achieve completely novel solutions and competitive advantages based on an
integrated intelligence
architecture.
TeamFinally, resource constraints may enhance innovation outcomes if they positively influence team dynamics. For example, a team may choose to leverage complementary skills and knowledge of its members more thoroughly when resources are very limited. In addition, scarce resources may increase the commitment of the team members to accomplish highly challenging innovation tasks. Thus, limited resources may actually strengthen the results of innovation projects if they positively affect team behavior.
Post-pandemic periodSeveral of these favorable conditions most likely affected the successful innovation of turning snorkeling masks into emergency medical equipment in the Italian hospital. Beyond this specific example, executives should
continue to invest in innovation
if they can somehow afford it with regard to their company’s financial situation. Even in these cases, however, inventors and innovators will usually face limited resources in terms of development time and budget. Therefore, a thorough understanding of the conditions under which resource constraints stimulate rather than impede innovative solutions is essential in 2021 and beyond. If executives manage to continue their firm’s innovation activities and effectively handle limited resources, they may well enjoy a sustainable competitive advantage in the aftermath of the Coronavirus crisis – the
post-pandemic period.