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Lecture Four Flashcards

(34 cards)

1
Q

what are the generations of innovation and their emergence? Rothwell (1994)

A

first generation: technology push model (early 50s- mid 60s)

second generation: market pull model (mid 60s - early 70s)

third generation: coupling model (early 70s - early 80s)

fourth generation: integrated, parallel model (early 80s - mid 90s)

fifth generation: integrated, networked model (late 1990s)

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2
Q

what was innovation like before 1900s?

A

organised innovation was rare before 1900s.

innovation was a slow process.

Individual innovators ‘believed to’ dominate the course of technological progress e.g. Alexander Graham Bell, John Logie Baird

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3
Q

what is the technology push model?

A

scientists make unexpected discoveries (basic science)

technologists apply them to develop product ideas (design and engineering)

engineers and designers turn them into prototypes for testing (design and engineering)

manufacturing figures out how to produce them (manufacturing)

marketing and sales to customers (sales)

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4
Q

what are weaknesses of the technology push model?

A

The assumptions are clearly crude and
simplistic

The technology push approach essentially
ignores the role of market demands

The success and dominance of an innovative product/design/process cannot be known in advance or assumed because it is the output of an inventive process

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4
Q

what are assumptions of the technology push model?

A

Stepwise progression from scientific discovery through applied research to technological development and production activities leading to a stream of new products into the market place.

Assumes that the market place is a ‘sink for
receiving the fruits of R&D

Assumes that ‘more R&D in’ equals ‘more
innovation out’

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5
Q

summarise features of the market pull model

A

Focuses on further developing existing technologies, rather than developing new products

Changes in corporate culture and more intense competition

Greater awareness of the role of the marketplace in innovation

R&D becomes reactive.

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6
Q

what is the market pull model

A

Assessment of market needs (market-need)

R&D and technologists develop product/service to satisfy demand (development)

Manufacturing produces them (manufacturing)

Selling to customers (sales)

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7
Q

what are assumptions of the market pull model

A

Stepwise progression from identifying and
assessing a market need, to developing a
concept product/service to satisfy the
demand, to production activities leading to a stream of new products that satisfy a market place

Assumes that innovations arise as a result of perceived and sometimes clearly articulated customer needs

Marketplace is a source of ideas for directing R&D and R&D departments are largely reactive

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8
Q

what are weaknesses of the market push model

A

simplistic assumptions

Ignores the impact and demand that can be
stimulated by emergence of new technology

As with previous model, oversimplified,
extreme and atypical of a process that links
science, technology and organizations and the market-place

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9
Q

summarise features of the coupling model

A

Resulted from high rates of inflation, demand saturation, growing structural unemployment;

Focus on cost control and reduction, and minimising wasteful failure;

Model a result of purposeful studies aimed at identifying a successful innovation process

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10
Q

what is the coupling model

A

Studies indicated that both technology-push and market-pull models were extreme and atypical;
Better process involved interaction between Technological capabilities and Market needs

Coupling model is an interactive model which is logically sequential, though not necessarily continuous; involves feedback loops.

It can be divided in a series of functionally distinctive but interacting and interdependent stages;

Complex net of communication paths, both within and outside the organization;

Innovation process:
Links various in-house functions together and Links firm to broader scientific/technological community and marketplace

Success or failure is rarely explained by one or two specific factors.

Success stems from doing most tasks competently and in a
balanced and well-coordinated way.

Key to this are high-quality and capable key individuals

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11
Q

what are assumptions of the coupling model

A

The innovation process is logical but not
necessarily continuous

The innovation process can be divided into a series of functionally distinct but interacting and interdependent stages

The innovation process can be thought of as a complex net of communication paths both
intra-organisational and extra organisational

The innovation process is reliant on the linking of in-house functions and linking them to the broader technological and scientific communities and to the market place.

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12
Q

what are weaknesses of the coupling model

A

Although the coupling approach contains
feedback loops it is essentially a sequential
model with limited functional integration

Research during mid 1980s highlighted that
innovation is better viewed as a parallel
integrated process

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13
Q

what is the integrated model

A

Arose during a Period of economic recovery (mid 80s - early 90s)

Shortening product life-cycles led to focus on time-based strategies, integration and parallel development.

Rapid growth in number of strategic alliances between companies.

Foundations in studies of Japanese automobile and electronics sectors → were able to innovate more rapidly and
efficiently than Western counterparts.

Integration + parallel development → Integration of external (e.g. suppliers) and internal (functions) activities, which work
on the project simultaneously.

Result of the interaction of the marketplace, science-base and organisation’s capabilities.

Overcomes limitations of Coupling Model by capturing functional overlap during innovation

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14
Q

what are assumptions of the integrated model

A

The innovation process consists of parallel
activity across organisational functions

The innovation process must build upon
parallel activities to include a high level of
functional integration during concurrent
activity

The innovation process can be managed from the initial concept of a new
product/service/process through to its launch by joint group meetings between engineers and managers

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15
Q

what are weaknesses of the integrated model

A

Doesn’t fully recognise the activities that arise due to external pressures or serendipity

16
Q

what is the systems integration and networking model

A

The pressure to yield faster and more efficient product development processes in the 1990s has led to an increase in:

  • Firms strive for better integrated product and manufacturing strategies;
  • Aims for greater flexibility and adaptability, greater speed of innovation, and cost
    reduction.
  • horizontal strategic alliances and collaborative R&D consortia
  • strategic vertical relationships, especially at the supplier interface
  • innovative SMEs forging external relationships with both large and small firms
  • greater emphasis on the development of cross-functional and parallel integration within firms to gain greater potential from higher real-time information processing
17
Q

what are assumptions of the systems integration and networking model

A

Greater overall organisational and systems
integration

Flatter, more flexible organisational
structures for rapid and effective decision
making

Fully developed internal databases

Effective external links

18
Q

what are weaknesses of the systems integration and networking model

A

High entry costs – new equipment and training

High learning costs at firm level and across the whole system

19
Q

definitions of open innovation - academic reference

A

Firms increasingly rely on external knowledge and expertise as a source of new
technologies and as an alternative means to commercialise their own
discoveries – this is “Open Innovation” (Chesbrough, 2003)

“the use of purposive inflows and outflows
of knowledge to accelerate internal innovation and expand
the markets for external use of innovation” (Chesbrough, 2006)

ADD ANOTHER ONE?

20
Q

what is open innovation?

A

Open Innovation is a model where firms use external and internal ideas to accelerate innovation. It involves collaborating with external partners (e.g., universities, startups, customers) to share knowledge, reduce costs, and bring products to market faster

innovation becomes a collective endeavor
– a type of collective problem solving in
response to a market need or opportunity
The innovation funnel becomes porous!
Goffin and Mitchell (2017)

21
Q

what is closed innovation?

A

Closed Innovation is a model where firms develop new ideas internally, relying solely on their own R&D, resources, and expertise. Knowledge is kept confidential, and innovation happens within the company, without external collaboration. This approach aims to maintain control and competitive advantage, but it can be slower and more costly than open innovation.

22
Q

what are open innovation principles

A

not all the smart people work for us, so we must find and tap into the knowledge and expertise of bright individuals outside our company.

external R&D can create significant value: internal R&D is needed to claim some portion of that value.

we dont have to originate the research to profit from it.

building a better busines smodel is better than getting to the market first.

if we make the best use of internal and external ideas, we will win

we should profit from others use of our IP (intelectual property) , and we should buy others IP whenever it advances our business model.

Firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their innovations

23
Q

what are closed innovation principles

A

the smart people in the field work for us

to profit from R&D =, we must disocver it, develop it, and ship it ourselves

if we discover it ourselves, we will get it to the market first

the company that gets an innovation to the market first will win

if we create the most and the best ideas in the industry, we will win.

we should control our intellectual property so that our competitiors dont profit from our ideas.

24
what are the modes of open innovation
outside-in open innovation inside-out open innovation coupled open innovation
25
what is outside in open innovation?
when a firm buys IP from another organisation for exclsuive use / several organisations for its product. Uses others IP and ideas to generate products / businesses.
26
what is inside out open innovation?
when firms transfers/ sells/ makes available its IP for others to use in their businesses or products.
27
what is coupled open innovation?
when companies (can be several) collaborate to develop new opportunities for their products. companies can give each other IPs for their own product development. leads to an innovation not owned solely by one party but each have a share.
28
what are the four stages of open innovation
organisations that are looking for ideas or partnerships must go through four stages: 1. Orientation: Clarifying needs and translating them into a form suitable for the search. 2. Exploration: Searching for solution providers. 3. Selection: Deciding on which potential solution providers to engage with. 4. Engagement: Coming to an agreement.
29
what are the 6 principles of open innovation
tap into external knowledge external R&D has significant value do not have to originate research in order to profit from it buidling a better business model is superior to being first to market best use of internal and external ideas, not generation of ideas profit from others IP (inbound OI) and others use of our IP (outbound OI)
30
what are the benefits of open innovation
increase the pool of knowledge reduce reliance on limited internal knowledge can reduce the cost and uncertainity associated with internal R&D, and increase depth and breadth of R&D reduce costs of internal R&D, more resources on external search strategies and relationships. greater emphasis on capturing rather than creating value better balance of resources to search and identify ideas, rather than generate value of IP very sensitive to complementary capabilities such as brand, sales network, production, logistics, and complementary products and services. (Tidd and Bessant, 2014)
31
what are the challenges of open innovation
how to search for and identify relevant knowledge sources how to share of transfer such knowledge, expecially tacit and systemic less likely to lead to distinctive capabilities and more diffciult to generate external R&D also available to competitiors need sufficient R&D capability in order to identify, evaluate and adapt external R&D first-mover advnatages depend on technology and market context. developing a business model demands time consuming negotiation with other actors generating ideas is only a small part of the innovation process most ideas unproven or no value, so cost of evaluation and development high conflicts of commercial interest or strategic direction. negotiation of acceptable forms and terms of IP liscenes. (Tidd and Bessant, 2014)
32
OPEN INNOVATION EXAMPLES
33
what is the relationship between diversity and open innovation
Diversity = Heterogeneity in team attributes (e.g., multicultural, gender, demographic). Benefits: Enhances collaboration, brings a wider range of perspectives, and fosters creative problem-solving in open innovation (OI). Challenges: Can lead to conflict and distrust, especially in gender-diverse teams, causing low cohesion and higher turnover. Data Insights: Gender diversity increases external collaboration and idea exchange across firms. Women tend to solicit input, include others, and promote open communication. Gender balance is crucial—too little or too much diversity can increase conflict and hinder innovation.