Chapter 2 = midterm Flashcards
What is Innovation?
The practical implementation of an idea into a new device or process.
What are some sources that innovation can arise from?
- Individuals, design solutions for own needs
- Research efforts at universities, government laboratories and incubators
- Private non-profits
- Firms (a primary engine). Typically have greater resources than individuals and a management system that aims resources at a collective purpose. Have incentives to develop new offerings.
- Networks of the above innovators (even more important). Linkages leverage knowledge and other combined resources.
What is an Idea?
Something imagined or pictured in the mind.
What is Creativity?
The ability to produce novel and useful work.
What is novel work?
Novel work is different from previously produced work, and does not simply follow the next logical step in a sequence of known solutions. How novel a product is depends on how different it is from previous work (minor deviation vs major leap), and on the audience’s prior experiences. If a product is novel to the person who made it, but known to most others, it is called a reinvention. It can also differ how novel a product is across the world.
What 5 parts is an individual’s creative ability a function of?
- Intellectual abilities. Intelligence, memory, ability to see problems in unconventional ways and articulate ideas to others.
- Knowledge. Familiar with potential solutions and can select among them, but can also trap you in assumptions that prevent you from generating more novel solutions.
- Personality. High need for autonomy, willingness to challenge authority and high self efficacy (believe can overcome obstacles) can facilitate creativity.
- Motivation. Intrinsic motivation is important for creativity; creative if we work on things we are genuinely interested in and enjoy. Extrinsic rewards can undermine creativity.
- Environment. Lets people be individualistic, is risk tolerant and empowers people to have dissenting views, it can empower creativity.
What does organisational creativity depend on?
The creativity of individuals within the organization, and social processes and contextual factors (structure, routines, incentives).
What is an Intranet?
A private network, only accessible to authorized individuals
How can organizations stimulate creativity?
- Suggestion boxes
- Databases or intranets for raising ideas
- Innovation competitions
- Creativity training programs
What are common traits in successful inventors?
- Have mastered the basic tools and operations of the field they invent in, but have not specified solely in that field (different perspectives).
- Curious and more interested in problems than solutions.
- Questions the assumptions made in previous work in the field
- Often have the sense that all knowledge is unified. Seek global rather than local solutions and are generalists by nature.
- May patent or commercialize only a few of their inventions = not necessarily entrepreneurial.
What is implied by Innovation by users?
Innovation originates with those who create solutions for their own needs, who have a deep understanding of the need and the incentive to find solutions that fulfill them. No initial intention to profit from the sale of their innovation, since they create it for their own use. Users may develop new products on their own, approach existing manufacturers with design suggestions, or alter the features of an existing product.
What is one of the most obvious sources of firm innovation?
Firms’ own research and development efforts. Research can be both basic and applied research.
What is Basic research?
Research targeted at increasing scientific knowledge for its own sake. May or may not have any long-term commercial application.
What is Applied research?
Research targeted at increasing knowledge for a specific application or need. Typically have specific commercial objectives.
What is Development?
Activities that apply knowledge to produce useful devices, materials or processes.
What are two previous approaches to innovation that has been criticised?
- The linear science-push approach. Discoveries in basic science were translated into commercial applications. Little real life applicability.
- The demand-pull model. Innovation driven by the perceived demand of potential users. Too simplistic.
What sources of information and ideas do successful innovator firms utilise?
- In-house R&D, including basic research
- Linkages to customers or other potential users of innovations
- Linkages to an external network of firms that may include competitors, complementors and suppliers
- Linkages to other external sources of scientific and technological information, such as universities and government laboratories
What is a complementor?
Producers of complementary goods or services.
How and why may firms form alliances to jointly work on innovation projects?
Through alliances, licensing agreements, joint ventures, etc. Often between firms and their customers, suppliers and local universities. Collaborators can pool resources and share the risk of new projects.
What is a firm’s Absorptive capacity?
The ability of an organization to recognize, assimilate and utilize new knowledge.
In-house R&D can help build this capacity.
What is a Technology transfer office?
Offices designed to facilitate the transfer of technology developed in a research environment to an environment where it can be commercially applied.
How do governments often invest in research?
Through their own laboratories, the formation of science parks and incubators, and grants for other public or private research entities.
What is a Science park?
Regional districts, typically set up by government, to foster R&D collaboration between government, universities, and private firms.
What is an Incubator?
Institutions designed to nurture the development of new businesses that might otherwise lack access to adequate funding or advice.
