Lecture 7 Flashcards
What is innovation?
It implies;
- Novelty (newness of ideas)
- Invention (generation of ideas)
- Diffusion (the spread of ideas)
- Implementation (application in practice of ideas)
Define the R&D simplified linear flow process
Knowledge sources generate ideas, decision are made, actions are undertaken and results are achieved
Repeat, repeat, repeat
(*Do note that the knowledge itself is not linear but continuous throughout the process)
What defines the R&D process?
The R&D process is driven by corporate strategies and goals upon which premises are formulated for valuable new product/platforms/extensions etc etc.
Name the three critical features of innovation
- Its dynamic nature
- Its implications for managing knowledge and practices
- Its relationship to context
What regarding external sources of knowledge has become increasingly more popular?
Trends like;
- globalisation (virtual teamwork, skype etc)
- Outsourcing of R&D
- Early supplier integration
- User innovation
- External commercialisation (patents for instance as strategic company assets)
What is open innovation?
A paradigm that assumes that firms can/should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology.
What is closed innovation?
The linear mode in which companies are self-reliant in terms of creating knowledge and introducing it in the form of new products to the markets.
What are the benefits of open innovation (outside->in)? (3)
- Reduces costs
- Saves time
- Less disruptive
What are the benefits of open innovation (inside->out)? (4)
- Creates a value chain
- Attracts people
- Earn royalties with your technologies
- Makes R&D more economically sustainable
What aspects undermine the logic of closed innovation? (4)
Dispersion/distribution of knowledge is confined to the organisation
- The increasing role of user groups for innovation
- The growing presence of venture capitalists
- Shortening of technology lifecycles
What are leadership challenges associated with open innovation?
- Major cultural changes
- “Not all smart people work for us!”
- Collaboration with others is vital but also risky
Fears/challenges for inside-out open innovation? (3)
- Much more radical changes are needed within organisations
- The fear that technologies will become successful outside of your company and then you only get royalties
- Interaction is required (taking seems easier than giving)
What is the difference between open source and open innovation?
Open source initiatives avoid business models whereas open innovation is very much focussed on creating business opportunities
