Theories of innovation

Question 1

What are paradigm shifts?

Answer 1

developmental shifts such as technology

Question 2

what is an example of a paradigm shift?

Answer 2

Antibiotics 1930

microchip 1970

Question 3

When does creative destruction occur?

Answer 3

when a new paradigm emerges

Question 4

what is creative destruction?

Answer 4

when new industries arise and old ones decline

Question 5

What are the 4 stages of the long wave cycle?

Answer 5

recovery, prosperity, recession and depression

Question 6

What is the recovery stage?

Answer 6

new products arise

Question 7

What is the prosperity stage?

Answer 7

innovations spread

Question 8

what is the recession stage?

Answer 8

risky investments occur, collapses

Question 9

what is the depression stage?

Answer 9

new industries mature and replace

Question 10

What are the four theories of innovation?

Answer 10

Technology s curve, punctured equilibrium, dominant design and absorptive capacity

Question 11

What is the technology s curve?

Answer 11

• begins with a learning curve
• technology approaches a natural limit
• new technology takes over
  e. g LD tv’s

Question 12

What is dominant design?

Answer 12

A single basic architecture that becomes the accepted market standard

• may create a standard
  e. g qwerty keyboard

Question 13

What is punctured equilibruim?

Answer 13

When technology evolves through series of fits and starts rather than continuously
technological breakthroughs

Question 14

What is an example of a punctured equilibrium?

Answer 14

areo engines…

piston, turb jet and turbo fan

Question 15

What is absorptive capacity?

Answer 15

The ability to apply new ideas depending on:

• exposure to knowledge
• presence of prior knowledge
• diversity of experience

Question 16

What is an example of absorptive capacity?

Answer 16

Mclaren, carbon fibre car in 1980’s …required new contacts, knowledge and design team