week 7 Flashcards
(12 cards)
What is innovation?
The process of creating and implementing new ideas, products, processes, or services to improve performance or address problems.
What are types of innovation?
*Product innovation
*Process innovation (e.g., lean manufacturing)
*Incremental innovation
*Radical innovation
What are other innovation types discussed?
*Open vs. closed innovation
*Sustaining vs. disruptive innovation
*Jugaad innovation (frugal innovation in resource-constrained environments)
How do institutional environments shape innovation?
Institutions influence how firms share knowledge, manage talent, fund projects, and collaborate — affecting whether innovation is incremental or radical.
How do intra-firm relations affect innovation in Japan?
*Long-term employment
*Seniority-based pay
*Emphasis on team learning and tacit knowledge
*Supports incremental innovation
How do intra-firm relations in the US affect innovation?
*High job mobility
*Performance-based pay
*Supports radical innovation and codified knowledge transfer
*Knowledge flows through labour market
What characterises intra-firm innovation in India?
*Mix of stable and informal employment
*Encourages frugal innovation (jugaad)
*Resourcefulness over structure
What is the role of inter-firm relations in innovation?
*Japan: Keiretsu – collaborative networks that support tech sharing
*India: Business groups (e.g., Tata, Reliance) pool resources
*US: Competitive, arms-length – supports quick adaptation
How do financial systems affect innovation?
*Japan: Bank-based finance, patient capital, internal R&D
*US: Deep capital markets, high venture capital availability
*India: Dual system – public sector banks + family investment arms
What role do universities play in innovation systems?
*Educate engineers and researchers
*Drive basic research
*Provide early-stage ideas (e.g., Stanford–Silicon Valley link)
How does government support innovation?
*Through industrial policy
*IP protection
*Tax incentives
*Standards and subsidies
What are innovation strengths of LMEs vs CMEs?
*LMEs: Radical innovation, fast-paced, codified knowledge
*CMEs: Incremental innovation, firm-specific knowledge, patient investment
