Innovation Strategy and the Corporation

What are the challenges which managers might face in trying to organize for a long-term steady stream of incremental innovation?
How are innovative capabilities built and deployed over time? Explain, providing examples of the ways in which competitive advantage can be constructed through building capabilities.
Is innovation manageable or just a random gambling activity where you sometimes get lucky? If it is manageable, how can firms organize and manage it – what general principles might they use?
How might an organization assess a portfolio of possible innovation projects? What are the relative strengths and weaknesses of different approaches?
How does innovation contribute to competitive advantage? Support your answer with illustrations from both manufacturing and services.