Elect 1- 1st exam Flashcards
Advances in ___ also have played a role in speeding the pace of innovation.
Information technology
The act of introducing a new device, method, or material for application to commercial or practical objectives.
Technological Innovation
Introducing new products helps firms protect their margins, while investing in process innovation helps.
lower their cost
Have made it easier and faster for firms to design and produce new products, while flexible manufacturing technologies have made shorter production runs economical and have reduced the importance of production economies of scale
Computer aided design and computer aided manufacturing
These technologies help firms develop and produce more product variants that closely meet the needs of narrowly defined customer group, thus achieving differentiation from
competitor’s
Product life cycle for software
4 to 12 months
Product life cycle for computer hardware and electronics
12 to 24 months
Product cycle for large home appliances
18 to 36 months
The total annual output of an economy as measured by its final purchase price
Gross domestic product
Is a structured process that guides organizations through a structured process of idea generation, concept development, feasibility analysis, prototype development, testing market launch, commercialization, and ongoing monitoring and iteration.
Innovation funnel
Costs (or benefits)
that are borne
(or reaped) by
individuals
other than those
responsible
for creating
them.
externalities
The practical
implementation
of an idea into
a new device or
process
Innovation
Something imagined or pictured
in the mind
Idea
The ability to
produce novel
and useful work.
creativity
A private
network, accessible only to
authorized
individuals.
Intranet
Research targeted
at increasing
scientific knowl
edge for its own
sake. It may or
may not have
any long-term
commercial
application
basic research
Research targeted
at increasing
knowledge for a
specific application or need.
applied
research
Producers of
complementary
goods or services
(e.g., for video
game console
producers such
as Sony or
Nintendo, game
developers) are
complementors
complementors
The ability of
an organization
to recognize,
assimilate, and
utilize new
knowledge.
absorptive
capacity
Offices designed
to facilitate the
transfer of tech
nology developed
in a research
environment to
an environment
where it can be
commercially
applied.
technology
transfer
offices
Regional dis
tricts, typically
set up by govern
ment, to foster
R&D collaboration between
government,
universities, and
private firms.
science parks
Institutions
designed to nurture the development of new businesses that
might otherwise
lack access to
adequate funding or advice.
incubators
Knowledge
that has many
underlying
components,
or many inter
dependencies
between those
components, or both
complex knowledge
Regional clusters
of firms that have
a connection to a
common technol
ogy, and may
engage in buyer,
supplier, and
complementor
relationships, as
well as research
collaboration.
technology cluster
Knowledge
that cannot be
readily codified
(documented in written form)
Tacit knowledge
Individuals or
organizations
that transfer
information from
one domain to
another in which
it can be usefully
applied.
knowledge brokers
The benefits
firms reap by
locating in close
geographical
proximity to each
other
agglomeration
A positive
externality from
R&D resulting
from the spread
of knowledge
across organiza
tional or regional
boundaries.
technological spillovers
The path a
technology
takes through
its lifetime.
This path may
refer to its rate
of performance
improvement, its
rate of diffusion,
or other change
of interest.
technology trajectory
builds
on existing
knowledge and
skills whereas a
competence
destroying
innovation
renders existing
knowledge and
skills obsolete
competence
enhancing and
competence
destroying
innovation
An innovation
that makes a
relatively minor
change from
(or adjustment
to) existing
practices.
incremental
innovation
An innovation
that is very new
and different
from prior
solutions
radical
innovation
An innovation
that changes the
overall design
of a system or
the way its com
ponents interact
with each other.
architectural
innovation
An innovation
to one or more
components
that does not
significantly
affect the overall
configuration of
the system.
component
(or modular)
innovation
The spread of
a technology
through a
population.
Technology diffusion
A technology
that fulfills a
similar market
need by building
on an entirely
new knowledge
base.
discontinuous
technology
A product design
that is adopted
by the majority
of producers,
typically creating
a stable architecture on which
the industry can
focus its efforts.
Dominant design
When the rate of
return (not just
gross returns)
from a product or
process increases
with the size of
its installed base.
increasing
returns
The ability of
an organization
to recognize,
assimilate, and
utilize new
knowledge.
absorptive
capacity
Also termed positive consumption externalities, this
is when the value
of a good to a
user increases
with the number
of other users
of the same or
similar good
network externalities
The number
of users of a
particular good.
For instance, the
installed base
of a particular
video game
console refers to
the number of
those consoles
that are installed
in homes
worldwide.
installed base
Additional goods
and services
that enable or
enhance the
value of another
good. For
example, the
value of a video
game console is
directly related to
the availability of
complementary
goods such as
video games,
peripheral
devices, and
services such as
online gaming.
Complementary goods
When end results
depend greatly
on the events
that took place
leading up to the
outcome. It is
often impossible
to reproduce
the results that
occur in such a
situation.
path dependency
The degree to
which a system’s
components can
be separated and
recombined.
modularity
