WEEK 1 Flashcards
(74 cards)
1
Q
Technological innovation
A
the act of introducing a new device, method or material for application to commercial or practical objectives
2
Q
What is nowadays the most important driver? competitive…
A
competitive success
3
Q
Computer-aided design and computer-aided manufacturing
A
have made it easier and faster for firms to design and produce new products
4
Q
What is the impact of flexible manufacturing technologies on production runs and economies of scale?
A
Flexible manufacturing technologies make shorter production runs economical and reduce the importance of economies of scale.
5
Q
How do flexible manufacturing technologies help firms adjust production?
A
They let companies quickly switch from making one product to another using real-time demand data.
6
Q
How do flexible manufacturing technologies reduce production costs?
A
By using the same parts in different products instead of making new ones for each model.
7
Q
What happens when companies use new technology and innovate quickly?
A
Greater market segmentation (positive) and rapid product obsolescence (negative).
8
Q
product life cycles
A
time between product’s introduction and its withdrawal from the market have shortened as well.
9
Q
Gross domestic product
A
total annual output of an economy as measured by its final purchase price
10
Q
Does technological innovation decreases/increases GDP by enhancing productivity
A
increases
11
Q
externalities
A
are costs or benefits that affect others, not just those who create the innovation. Some can be negative, like pollution or job losses.
12
Q
The innovation funnel
A
Most new ideas don’t become successful products. Many fail to work technically or don’t make money.
13
Q
Strategies innovators should take are (3)
A
- in line with current resources and objectives
- organizations should be designed to support and adapt to new ideas efficiently
- A new product development should make the project more successful
14
Q
To achieve these things, a company needs (3)
A
- In-dept UNDERSTANDING of the dynamics of innovation
- Well-crafted INNOVATION strategy
- Well-designed process for IMPLEMENTING the innovation strategy
15
Q
Innovation
A
practical implementation of an idea into a new device or process
16
Q
different sources for innovation: FUIGP
A
- firms: as they face strong incentives to innovate
- universities: which do new discoveries by projects
- individuals: users, employees and outsides who design solution for their own needs
- government funded research:
- private non profits
17
Q
idea
A
something imagined or pictures in the mind
18
Q
creativity
A
ability to produce novel and useful work
19
Q
What makes a product novel
A
A product is novel if it’s very different from past work and from what people have seen before. If it’s already familiar to a group, it’s a reinvention.
20
Q
An individual’s creative ability is a function of KITPEM
A
- knowledge: too little knowledge results in no contribution, too much in becoming trapped in existing logic and paradigms.
- intellectual abilities: analyze, communicate, convince
- thinking style: a person who can discriminate between important and unimportant problems
- personality: confidence in their own capability (self-efficacy), tolerance for ambiguity and willingness to overcome obstacles and take reasonable risks
- environment: provide support
- motivation: intrinsic motivation is important for creativity
21
Q
the level of creativity of the organization’s creativity is a combination of several factors
A
individual, creativity, social processes and contextual factors.
22
Q
whats an intranet
A
a private network, accessible only to authorized individuals, it is like the internet but only operates within an organization where employees can share their ideas and interact.
23
Q
Suggestion boxes
A
tools for collection ideas
24
Q
Creative training
A
helps managers support employees by making them feel valued and respected
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Company culture
supports creativity beyond just financial rewards
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Exercises
like brainstorming alternative scenarios boost creativity
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The most successful inventors
- have BROAD KNOWLEDGE
- are CURIOUS AND INTEREST IN PROBLEMS rather than solutions
- seek GLOBAL solutions
- QUESTION the assumption made in previous work in the field
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Basic research
increasing scientific knowledge for its own sake, it may or may not have a long-term commercial application
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Applied research
increasing knowledge for a specific application or need
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Development
activities that apply knowledge to produce useful devices, materials, or processes.
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Research & development
refers to a range of activities that extend from early exploration of a domain to specific commercial implementations
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Why do firms consider in-house R&D important for innovation?
Firms view in-house R&D as their most important source of innovation.
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What evidence supports the importance of R&D in business success?
R&D intensity has a strong positive correlation with a firm's sales growth rate, sales from new products, and profitability.
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R&D leads to innovation in two main ways; science push and demand-pull
1.Science-push (1950s-1960s): innovation moves step by step from scientific discovery to invention, engineering, manufacturing and finally marketing
2.Demand-pull (1965): innovation is driven by customer needs and market demand, where user suggestions lead to new products.
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Current research
Successful firms innovate by combining in-house R&D, customer feedback, and external networks
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Complementors
create products that enhance another product (DVD movies for DVD players).
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competitors
work together in certain product areas
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absorptive capacity
Instead of replacing in-house R&D, external information sources complement it, helping companies absorb and apply new knowledge
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Technology transfer offices
a department in universities or research institutions that helps turn new scientific discoveries into real-world products
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Science parks
regional districts, typically set up by government, to foster R&D collaboration between government, universities and private firms.
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Incubators
institutions designed to nurture the development of new businesses that otherwise lack access to adequate funding or advice.
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Geographical proximity helps...
helps companies share knowledge and work together more effectively
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Technology clusters
groups of firms in the same area that share a common technology and collaborate on research, suppliers, and development. This makes knowledge-sharing faster and cheaper
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Tacit knowledge
Knowledge that is difficult to write down or explain but is best shared through direct experience and interaction
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Complex knowledge
Knowledge that has many underlying components or many interdependencies between those components or both
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Agglomeration economies
happen when companies benefit from being close to each other (geographical proximity). This makes it easier to share information, boost innovation, attract more businesses, and bring in skilled workers.
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whats the downside of agglomeration economies
1. More competition
2. Lower pricing power
3. Risk of knowledge leaks
4. Traffic and pollution issues
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Knowledge brokers
are individuals or organizations that transfer information from one domain to another in which it can usefully be applied.
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Innovation clusters depend on factors like:
1.Technology type: patents and communication needs
2.Industry characteristics: market size and transport costs
3.Cultural context: labor supply and infrastructure
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Technological spill-over
happens when R&D knowledge spreads beyond companies/regions improving access to knowledge and innovation.
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Technology trajectory
path a technology takes through its lifetime. This path may refer to its rate of performance improvement, its rate of diffusion or other changes of interest
52
Product innovation
-Are reflected in the output (goods or services).
-New products may enable the development of new processes
-Often MORE VISIBLE than process innovations
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Process innovation
- Innovations in the way an organization conducts its business, such as in the techniques of producing or marketing goods or services.
- Oriented toward improving the effectiveness or efficiency of production.
- New processes may enable the production of new products
!!!A product innovation for one firm may be a process innovation for another!!!!
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Radical innovation
-Very new and different from prior solutions
-Combination of newness and distinctiveness
-Different from existing products/processes
-Example: wireless telecommunication
-High knowledge and risk
-Can shift over tie from radical to incremental as it becomes more common
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Incremental innovation
-Makes a minor change from existing practices
-Less risky than radical innovation
-More familiar and accepted by producers and consumers
-An innovation that was once radical may eventually become incremental
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Competence enhancing innovation
-Builds upon existing knowledge and skills of the firm
-Strengthens or improves current competencies
-Leverages established expertise
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Competence destroying innovation
-Does not build on the firm’s existing competencies
-Renders previous skills or technologies obsolete
-Requires firms to develop new capabilities or abandon old ones
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Architectural innovation
-Changes the overall design of a system
-Alters how components interact with each other
-Can have far-reaching and complex influences on competitors and technology users
-Requires architectural knowledge about how components link and integrate into the whole system
-Often classified as radical innovation
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Component innovation
-Innovation to one or more components
-Does not significantly affect the overall system configuration
-Requires knowledge only about the specific component being modified
-Less complex in terms of impact on the industry
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Technology S-curves
Represents the rate of technological performance improvement and adoption in the market
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S-curve in Technological improvement
Shows how performance of a technology improves over time as mor effort, money or resources are invested
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Discontinuous technology
When a new technology starts, it performs worse than the old one because it is still developing. Over time, as companies invest in it, it improves rapidly and eventually surpasses the old technology. This creates an S-curve, where at first, the progress is slow, then it speeds up, and finally levels off as it reaches its full potential.
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What happens during the "Poor Understanding" phase of technology adoption?
Firms are hesitant to switch because they do not fully understand the benefits of the new technology.
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What happens during the "Acceleration in Understanding" phase?
Firms realize that the new technology offers much better returns than the incumbent technology, leading to rapid adoption.
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What happens during the "Diminishing Returns" phase?
Improvement slows down as the technology approaches its performance limit.
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S-curve in Technology Diffusion
refers to how a new technology spreads across a market or population
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what are the steps of the s curve: S-curve in Technology Diffusion
1.The Innovation is Unfamiliar → Slow adoption because people don’t understand it.
2.The Innovation is Better Understood → Rapid adoption as firms see its benefits.
3.The Market is Saturated → Adoption slows because most firms have already adopted it.
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Limitations of the S-Curve Model
- Uncertain Limits: It’s hard to predict how far a technology can improve.
- Not Fixed: The shape of an S-curve can change based on new developments.
- Company Influence: Firms can speed up or slow down an S-curve by investing in development.
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creative destruction
new technologies disrupt existing industries and create new market leaders
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Phases of Technological Change
1.Turbulence: Uncertainty as a new technology emerges.
2.Rapid Improvement: Technology improves quickly as firms invest in it.
3.Diminishing Returns: Performance improvements slow down.
4.Displacement: The old technology is replaced by a new one.
71
Technology Evolution Model
describe three phases in the evolution of a technology
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what are the three phases of Technology Evolution Model
1.Fluid Phase: Uncertainty about the technology and its market. Competing designs exist until a dominant design emerges (a widely accepted version of the technology).
2.Transitional Phase: Focus shifts from experimenting with new designs to process innovations that improve efficiency.
3.Specific Phase: Industry stabilizes around the dominant design. Focus on cost reduction and efficiency rather than radical changes.
73
Cyclical Model
They argue that technological change happens in cycles, alternating between two main eras:
1.Era of Ferment: A period of uncertainty when a new technological discontinuity (a breakthrough) emerges. Many competing designs exist.
2.Era of Incremental Change: Industry settles on a dominant design. Gradual improvements (incremental changes) are made to refine the technology. Over time, another technological discontinuity disrupts the industry, restarting the cycle.
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