IDT - Innovation Models (Tidd et al, 2005)

Question 1

Innovation models by Joe Tidd (2006)

Answer 1

Evolving models of the innovation process, including:

• Five generations of innovation models
• Problems with partial views of innovation
• Discontinuity in innovation
• Innovation life cycle stages
• Innovation network types
• Innovation diffusion models

Question 2

Van de Ven (2000)

Answer 2

Has determined important modifiers of the basic model

Question 3

Roy Rothwell

Answer 3

Has conceptualized five generations of innovation models

Question 4

Important modifiers of the basic model

Answer 4

• Shocks trigger innovation
• Ideas proliferate
• Setbacks occur frequently
• Innovation is restructured through external intervention
• Top management’s key role in sponsoring
• CSFs shift over time
• Innovation involves learning

Question 5

First and second generation of innovation models

Answer 5

The linear models. Need pull and technology push

Question 6

Third generation of innovation models

Answer 6

Interaction between different elements and feedback loops between them -the coupling mode

Question 7

Fourth generation of innovation models

Answer 7

The parallel lines model, integration within the firm, upstream with key suppliers and downstream with demanding and active customers, emphasis on linkages and alliances

Question 8

Fifth generation of innovation models

Answer 8

Systems integration and extensive networking, flexible and customized response, continuous innovation

Question 9

Tidd et al (2005): Problems of partial views of innovation

Answer 9

If innovation is only seen as … then the result can be that..

Question 10

Problems of partial views of innovation: Strong R&D capability

Answer 10

Technology which fails to meet user needs and may not be accepted

Question 11

Problems of partial views of innovation: The province of specialists

Answer 11

Lack of involvement by others, and a lack of key knowledge and experience input from other perspectives in the R&D

Question 12

Problems of partial views of innovation: Understanding and meeting customer needs

Answer 12

Lack of technical progression, leading to inability to gain competitive edge

Question 13

Problems of partial views of innovation: Advances along the technology frontier

Answer 13

Producing products or services which the market does not want or designing processes which do not meet the needs of the user and whose implementation is resisted

Question 14

Problems of partial views of innovation: The province only of large firms

Answer 14

Weak small firms with too high a dependence on large customers. Disruptive innovation as apparently insignificant small players seize new technical or market opportunities

Question 15

What is discontinuous innovation?

Answer 15

A form of innovation that does not happen within the ‘rules of the game’, an innovation that is not widely accepted.

Question 16

Sources of discontinuity (Tidd et al, 2005)

Answer 16

• New markets
• New technologies
• New political rules
• Market exhaustion
• Sea change in market sentiment of behaviour
• Deregulation / shifts in regulatory regime
• Fractures along ‘fault lines’
• Unthinkable events
• Business model innovation
• Shifts in ‘techno-economic paradigm’ - systematic changes which impact whole sectors or societies
• Architectural innovation

Question 17

Stages in the innovation life cycle (Tidd et al, 2005)

Answer 17

• Fluid Pattern
• Transitional phase
• Specific phase

Question 18

Innovation life cycle: Fluid pattern

Answer 18

Emphasis on functional product performance. Mostly major changes in the product itself

Question 19

Innovation life cycle: Transitional phase

Answer 19

Product variation. Mostly major process innovations

Question 20

Innovation life cycle: Specific phase

Answer 20

Cost reduction. Mostly incremental product and process innovations

Question 21

Frans Berkhout and Ken Green (2003): limitation in the conceptualizing of innovation

Answer 21

• The focus is often too narrow; aimed at managers, the firm or supply chain
• The focus lies on a technology or product, where it should be on a technological system or regime and their evolution
• The assumption that innovation is only resulting from the coupling of technological opportunity with demand is too limited. It should include social structures as well

Question 22

Competitive rivalry (as compared by Lacey Glenn Thomas in 1994)

Answer 22

Case studies and statistical analysis show that competitive rivalry stimulates firms to invest in innovation and change, because their very existence will be threatened if they do not.

Question 23

Types of innovation networks

Answer 23

• Product/Process development consortium
• Sectoral forum
• New technology development consortium
• Emerging standards
• Supply chain learning
• Cluster
• Topic network

Question 24

Innovation network: product/process development consortium

Answer 24

Sharing knowledge and perspectives to create and market new product or process concept -for example, the Symbian consortium (Sony, Ericsson, Motorola and others) working towards developing a new operating system for mobile phones and PDAs.

Question 25

Innovation network: Sectoral forum

Answer 25

Shared concern to adopt and develop innovative good practice across a sector or product market grouping -for example, in the UK the SMMT Industry Forum or the Logic (Leading Oil and Gas Industry Competitiveness), a gas and oil industry forum.

Question 26

Innovation network: New technology development consortium

Answer 26

Sharing and learning around newly emerging technologies -for example, the pioneering semiconductor research programmes in the US and Japan.

Question 27

Innovation network: Emerging standards

Answer 27

Exploring and establishing standards around innovative technologies -for example, the Motion Picture Experts Group (MPEG) working on audio and video compression standards.

Question 28

Innovation network: Supply chain learning

Answer 28

Developing and sharing innovative good practice and possibly shared product development across a value chain -for example, the SCRIA initiative in aerospace.

Question 29

Innovation network: Cluster

Answer 29

Regional grouping of companies to gain economic growth through exploiting innovation synergies.

Question 30

Innovation network: Topic network

Answer 30

Mix of firms companies to gain traction on key new technology.

Question 31

Important success factors to innovation (AIM, 2004)

Answer 31

* High diversity: network of diverse partners who encourage exchanges about ideas. * Third-party gatekeepers: science partners such as universities, consultants and trade associations, who provide access to expertise and act as neutral knowledge brokers across the network. * Financial leverage: access to investors via business angels, venture capitalists firms and corporate venturing which spreads the risk of innovation and provides market intelligence. * Proactive management: participants regard the network as a valuable asset and actively manage it to reap the innovation benefits.

Question 32

Dimensions of innovation network types

Answer 32

Vertical: Radical innovation vs. incremental innovation. Horizontal: Similar vs. Heterogeneous

Question 33

David Teece (1998) nine ways to appropriate benefits from innovation

Answer 33

1. Secrecy 2. Acc. tacit knowledge 3. Lead times + aftersales 4. Learning curve 5. Complementary assets 6. Product complexity 7. Standards 8. Pioneering radical new products 9. Strength of patent protection

Question 34

Characteristics that affect diffusion of innovation (Rogers, 2003)

Answer 34

* Relative advantage: Whether the innovation is perceived as better than existing * Compatibility: degree to which innovation is consistent to existing values * Complexity: degree to which innovation is perceived to be difficult * Trial-ability: degree to which innovation can be experimented * Observation: degree to which the results of innovation are visible to others

Question 35

Two Processes of diffusion

Answer 35

Demand-side models, mainly statistical Supply-side models, mainly sociological Typically it follows the S-curve

Question 36

Demand-side proces of diffusion

Answer 36

* Epidemic, based on direct contact with, or imitation of prior adopters * Bass, based on adopters consisting of innovations and imitators * Probit, based on adopters with different benefit tresholds * Bayesian, based on adopters with different perceptions of benefit and risk

Question 37

Supply-side process of diffusion

Answer 37

* Appropriability, which emphasizes relative advantage of an innovation * Dessemination, which emphasizes the availability of information * Utilization, which emphasizes the reduction of barriers to use * Communication, which emphasizes the feedback between developers and users