m01-m06 Flashcards
What is innovation according to Schumpeter?
Competition from the new which strikes not at margins of profits of existing firms but at their foundations -> innovation as destruction
What is innovation according to Baumol?
In capitalism, innovation becomes mandatory. All economic growth since 18th century due to innovation. -> innovation as competitiveness & growth
What are innovations according to Hauschildt?
new products or processes that differ significantly from what existed before
What is innovation according to Porter?
New way of doing things that is commercialized
What is innovation according to Afuah?
Adoption of ideas that are new to the adopting organization
What are the steps of innovation? (Hauschildt)
idea > discovery > research > development > invention > market launch (order may vary, borders fluid)
What is the difference between invention & innovation?
Innovation adds market launch
What are the two dimensions innovations can be categorized by?
needs (newness for market) (marketing) & newness of solution (R&D)
How is R&D distributed? (Who executes/pays?)
Concentrated on large companies, basic research funded by government
What is the principal-agent problem?
Agent is hired by principal to execute task but has contrary interests.
What is the interface problem?
Concerns are not mentioned or not listened to -> communication issues
Is Innovation an output or a process?
both
What are long-term patterns of technological change?
- cumulative & evolutionary
- most innovations = new combinations of existing technologies
- not smooth, automatic process
- some revolutionary changes can lead to waves of change
What are Kondratiev long-waves?
Connecting new pervasive technologies, waves of change/innovation, thought to be 50 yrs but becoming shorter
How does one technology produce outcome with ongoing development/time?
S-curve
1) Emergence
2) Rapid improvement
3) Declining improvement
4) Maturity (converging to limit of technology)
model has of course limitations, is not law of nature
How do two s-curves behave in relation to each other?
Often, when one technology reaches limit, other technology has developed to max movement in background and overtakes.
What problems of established companies can S-Curves solve?
- Current tech is over-estimated
- R&D budgets are linked to revenues (avoiding overspending or giving up)
- Misinterpretation of market signals due to biased attitute
- Lack of flexibility
- > can help to determine when to switch to new technology
How does the amount of firms in the market develop with the PLC?
Phase 1: performance (entries > exits)
Phase 2: differentiation (entries = exits)
Phase 3: price (entries < exits)
What categories does Rogers Adoption/Innovation curve know?
Innovators Early Adopters Early Majority Late Majority Laggards
Adoption Curve: What characterizes Innovators?
venturesome, active information seekers, able to cope with high degree of uncertainty
Adoption Curve: What characterizes Early adopters?
often opinion leaders, more locally integrated than innovators, sought by change agents as “local missionary”, can give stamp of approval on new idea
Adoption Curve: What characterizes Early majority?
interact a lot with their peers, rarely opinion leader, 1/3 of all members
Adoption Curve: What characterizes Late Majority?
adoption may be economically necessary or result of peer pressure, system must favor innovation
Adoption Curve: What characterizes Laggards?
near isolates in social network, past is point of reference, limited resources, tend to be suspicious of innovations and change agents