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There is now widespread agreement that innovation holds the key to future economic and social prosperity in developed countries. Experts studying contemporary capitalism also agree that the battle against unemployment and relocations can only be won through innovation. But what kind of innovation is required and what is the best way to manage, steer and organize it? Grounded on experiences of innovative firms and based on the most recent design theories, this book argues that instead of relying on traditional R&D and project management techniques, the strategic management of innovation must be based on innovative design activities. It analyses and explains new management principles and techniques that deal with these activities, including innovation fields, lineages, C-K (Concept-Knowledge) diagrams and design spaces. The book is ideal for advanced courses in innovation management in industrial design schools, business schools, engineering schools, as well as managers looking to improve their practice.