chapter 2 Flashcards
innovation
the practical implementation of an idea into a new device or process.
idea
something imagined or pictured in the mind.
creativity
the ability to produce novel and useful work.
novel
the degree to which a product is novel is a function of how different it is from prior work and of the audience’s prior experiences.
reinvention
when a product is novel to the person who made it but known to almost everyone else.
knowledge
too little knowledge results in no contribution, too much in becoming trapped in existing logic and paradigms.
thinking style
a person who can discriminate between important and unimportant problems.
creativity of an organisation
the combination of several factors, such as individual creativity, social processes, and contextual factors.
Intranet
a private network, accessible only to authorised individuals. it is like the internet but operates only within an organisation. there, employees can submit their ideas and actively interact and collaborate with the ideas of others.
idea collection systems
eg. suggestion boxes. relatively easy and inexpensive to implement, however that is only a first step in maximising employee creativity.
creative training programs
encourage managers to develop verbal and nonverbal clues that signal employees their thinking and autonomy are respected. these cues shape the culture of the firm and are often more effective than monetary rewards. they also often incorporate exercises that encourage employees to use creative mechanisms such as developing alternative scenarios.
user innovations
can blossom into new industries. users often have a deep understanding of their unmet needs and the incentive to find ways to fulfull them. this part can be improved in innovation: users may alter the features of existing products, approach existing manufacturers with product design suggestions, or develop new products themselves.
basic research
research targeted at increasing scientific knowledge for its own sake. it may or may not have a long-term commercial application.
applied research
research targeted at increasing knowledge for a specific application or need.
development
includes activities that apply knowledge to produce useful devices, materials, or processes. therefore, R&D indicates the path from early exploration to commercial applications.
research and development (R&D)
refers to a range of activities that extend from early exploration of a domain to specific commercial implementations. firms consider their in-house R&D department to be the most important source of innovation.
Science-Push
1950s-1960s. it was assumed that innovation proceeded linearly from scientific discovery, to invention, to engineering, then manufacturing activities, and finally marketing.
Demand-Pull
- there was a need from the demand side of the market where there were customer suggestions by potential users. this was manufactured and commercialised.
Current research
firms are successful innovators; they have in-house R&D, links to customers and external networks and sources of information. they make use of multiple sources.
collaboration
might occur in the form of alliances, participation in research consortia, licensing arrangements, contract research, and development, and other criteria.
complementors
producers of complementary goods or services. in some situations rivals engage in collaborative development in a product category or complementary product categories.
alliances
often formed with customers, suppliers, competitors, and complementors to jointly work on an innovation project or to exchange information and other resources in pursuit of innovation.
absorptive capacity
the ability of an organisation to recognise, assimilate, and utilise new knowledge. in-house R&D helps to build absorptive capacity.
technology transfer offices
offices designed to facilitate the transfer of technology developed in a research environment where it can be commercially applied. many universities have established these to increase the degree to which university research leads to commercial innovation.
science parks
regional districts, typically set up by government, to foster R&D collaboration between government, universities, and private firms.
incubators
institutions designed to nurture the development of new businesses that otherwise lack access to adequate funding or advice.
private non-profit organisations
perform their own R&D activities. some fund the activities of others and do not do it themselves, some do both. eg. non-profit hospitals and private foundations.
technology clusters
regional clusters of firms that have a connection to a common technology, and may engage in buyer, supplier, and complement relationships, as well as research collaboration. they benefit the exchange of knowledge. information is spread faster, easier, and cheaper but will not always transfer readily. proximity and interaction can influence firms’ ability and willingness to exchange knowledge.
tacit knowledge
knowledge that cannot be readily codified (documented in written form).
complex knowledge
knowledge that has many underlying components, or many interdependencies between those components or both.
agglomeration economies
the benefits firms reap by locating in close geographical proximity to each other. firms that are proximate have an advantage in sharing information that can lead to greater innovation productivity. this can in turn lead to other self-reinforcing geographical afvantages; more firms starting up, attracting other firms in the area, and attracting new labour.
knowledge brokers
individuals or organisations that transfer information from one domain to another in which it can usefully be applied.
nature of technology
its underlying knowledge base or the degree of protection by patents or copyright, degree to which its communication requires close interaction.
industry characteristics
market concentration or stage of the industry life cycle, transportation costs, and the availability of supplier and distributor markets.
cultural context of the technology
population density of labour or customers, infrastructure development, or national differences in the technology funds and protection.
technology spill-over
a positive externality from R&D resulting from the spread of knowledge across organisational or regional boundaries. this leads to better protection mechanisms, mobile labour forces, and more access to knowledge.
