IDT - Innovation Models (Tidd et al, 2005) Flashcards
Innovation models by Joe Tidd (2006)
Evolving models of the innovation process, including:
- Five generations of innovation models
- Problems with partial views of innovation
- Discontinuity in innovation
- Innovation life cycle stages
- Innovation network types
- Innovation diffusion models
Van de Ven (2000)
Has determined important modifiers of the basic model
Roy Rothwell
Has conceptualized five generations of innovation models
Important modifiers of the basic model
- Shocks trigger innovation
- Ideas proliferate
- Setbacks occur frequently
- Innovation is restructured through external intervention
- Top management’s key role in sponsoring
- CSFs shift over time
- Innovation involves learning
First and second generation of innovation models
The linear models. Need pull and technology push
Third generation of innovation models
Interaction between different elements and feedback loops between them -the coupling mode
Fourth generation of innovation models
The parallel lines model, integration within the firm, upstream with key suppliers and downstream with demanding and active customers, emphasis on linkages and alliances
Fifth generation of innovation models
Systems integration and extensive networking, flexible and customized response, continuous innovation
Tidd et al (2005): Problems of partial views of innovation
If innovation is only seen as … then the result can be that..
Problems of partial views of innovation: Strong R&D capability
Technology which fails to meet user needs and may not be accepted
Problems of partial views of innovation: The province of specialists
Lack of involvement by others, and a lack of key knowledge and experience input from other perspectives in the R&D
Problems of partial views of innovation: Understanding and meeting customer needs
Lack of technical progression, leading to inability to gain competitive edge
Problems of partial views of innovation: Advances along the technology frontier
Producing products or services which the market does not want or designing processes which do not meet the needs of the user and whose implementation is resisted
Problems of partial views of innovation: The province only of large firms
Weak small firms with too high a dependence on large customers. Disruptive innovation as apparently insignificant small players seize new technical or market opportunities
What is discontinuous innovation?
A form of innovation that does not happen within the ‘rules of the game’, an innovation that is not widely accepted.
Sources of discontinuity (Tidd et al, 2005)
- New markets
- New technologies
- New political rules
- Market exhaustion
- Sea change in market sentiment of behaviour
- Deregulation / shifts in regulatory regime
- Fractures along ‘fault lines’
- Unthinkable events
- Business model innovation
- Shifts in ‘techno-economic paradigm’ - systematic changes which impact whole sectors or societies
- Architectural innovation
Stages in the innovation life cycle (Tidd et al, 2005)
- Fluid Pattern
- Transitional phase
- Specific phase
Innovation life cycle: Fluid pattern
Emphasis on functional product performance. Mostly major changes in the product itself
Innovation life cycle: Transitional phase
Product variation. Mostly major process innovations
Innovation life cycle: Specific phase
Cost reduction. Mostly incremental product and process innovations
Frans Berkhout and Ken Green (2003): limitation in the conceptualizing of innovation
- The focus is often too narrow; aimed at managers, the firm or supply chain
- The focus lies on a technology or product, where it should be on a technological system or regime and their evolution
- The assumption that innovation is only resulting from the coupling of technological opportunity with demand is too limited. It should include social structures as well
Competitive rivalry (as compared by Lacey Glenn Thomas in 1994)
Case studies and statistical analysis show that competitive rivalry stimulates firms to invest in innovation and change, because their very existence will be threatened if they do not.
Types of innovation networks
- Product/Process development consortium
- Sectoral forum
- New technology development consortium
- Emerging standards
- Supply chain learning
- Cluster
- Topic network
Innovation network: product/process development consortium
Sharing knowledge and perspectives to create and market new product or process concept -for example, the Symbian consortium (Sony, Ericsson, Motorola and others) working towards developing a new operating system for mobile phones and PDAs.
Innovation network: Sectoral forum
Shared concern to adopt and develop innovative good practice across a sector or product market grouping -for example, in the UK the SMMT Industry Forum or the Logic (Leading Oil and Gas Industry Competitiveness), a gas and oil industry forum.
Innovation network: New technology development consortium
Sharing and learning around newly emerging technologies -for example, the pioneering semiconductor research programmes in the US and Japan.
Innovation network: Emerging standards
Exploring and establishing standards around innovative technologies -for example, the Motion Picture Experts Group (MPEG) working on audio and video compression standards.
Innovation network: Supply chain learning
Developing and sharing innovative good practice and possibly shared product development across a value chain -for example, the SCRIA initiative in aerospace.
Innovation network: Cluster
Regional grouping of companies to gain economic growth through exploiting innovation synergies.
Innovation network: Topic network
Mix of firms companies to gain traction on key new technology.
Important success factors to innovation (AIM, 2004)
- High diversity: network of diverse partners who encourage exchanges about ideas.
- Third-party gatekeepers: science partners such as universities, consultants and trade associations, who provide access to expertise and act as neutral knowledge brokers across the network.
- Financial leverage: access to investors via business angels, venture capitalists firms and corporate venturing which spreads the risk of innovation and provides market intelligence.
- Proactive management: participants regard the network as a valuable asset and actively manage it to reap the innovation benefits.
Dimensions of innovation network types
Vertical: Radical innovation vs. incremental innovation.
Horizontal: Similar vs. Heterogeneous
David Teece (1998) nine ways to appropriate benefits from innovation
- Secrecy
- Acc. tacit knowledge
- Lead times + aftersales
- Learning curve
- Complementary assets
- Product complexity
- Standards
- Pioneering radical new products
- Strength of patent protection
Characteristics that affect diffusion of innovation (Rogers, 2003)
- Relative advantage: Whether the innovation is perceived as better than existing
- Compatibility: degree to which innovation is consistent to existing values
- Complexity: degree to which innovation is perceived to be difficult
- Trial-ability: degree to which innovation can be experimented
- Observation: degree to which the results of innovation are visible to others
Two Processes of diffusion
Demand-side models, mainly statistical
Supply-side models, mainly sociological
Typically it follows the S-curve
Demand-side proces of diffusion
- Epidemic, based on direct contact with, or imitation of prior adopters
- Bass, based on adopters consisting of innovations and imitators
- Probit, based on adopters with different benefit tresholds
- Bayesian, based on adopters with different perceptions of benefit and risk
Supply-side process of diffusion
- Appropriability, which emphasizes relative advantage of an innovation
- Dessemination, which emphasizes the availability of information
- Utilization, which emphasizes the reduction of barriers to use
- Communication, which emphasizes the feedback between developers and users
