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Innovation Management GM0401
6 september Institute for Innovation and Entrepreneurship (IIE) School of Business, Economics and Law University of Gothenburg Johan Brink
This course
• Formal: 9.15 to 12 – (Some lectures will be shorter) • Informal: Read before! Q&A and Discussions – Mandatory: Case presentations • 3 Cases (30% final grade) – Groups: write, presentations and discussions – 6 groups: A-F • Exam (70%) – Sat 30 oct, 9.00-14, Viktoriagatan 30
The Structure of MTI How is this course run?
The Book: The Management of Technological Innovation; Dodgeson, Gann and Salter MTI is structured through three dimensions: 1
What
are the overall context and forms for the emergence of technological innovation? (Chapters 1-3) 2 How MTI helps create, shape and deliver innovation for firm (chapter 4-9). Approaches, tools & techniques Not Chapter 8 , Innovation in Operations and Processes 3
What
are the future challenges of MTI? 5 future challenges (Chapters 10)
Additional required readings
• • • • • • • • • • Malerba, F. (2002), Sectoral systems of innovation and production, Research Policy 31 247 –264 Olleros, F.-J. (1986) Emerging Industries and the Burnout of Pioneers, Journal of Product innovation management, Vol.1, pp.5-18 Rosenbloom, R. and M. Cusumano, Technological pioneering and the competitive advantage, California Management Review, 1987, Vol 29:4 51-76 Pavitt, K. (1984) Sectoral patterns of technical change: Towards a taxonomy and a theory, Research Policy, 13:343-373 Courtney, H. et all. (1997) Strategy under uncertainty, Harvard Business Review, Nov-Dec, 67-79 Powell, W et all. (1996) Interorganizational Collaboration and the Locus of Innovation: Networks of Learning invBiotechnology, Administrative Science Quarterly, Vol. 41, No. 1 (Mar), pp. 116-145 Tushman, M. and C. O ´Reilly, (1996) Ambidextrous Organizations, California Management Review, Vol 38:4, 8-30 Chesbrough, H and D. Teece, (1996), When Is Virtual Virtuous? Harvard Business Review, Jan-Feb, 65-73 Maidique M. and Zirger (1985) The new product learning cycle, Research Policy, 14, 299-313 Teece, D (1986)Profiting from technological innovation:Implications for integration, collaboration,licensing and public policy, Research Policy, 15:285-305
7 8 9 4 5 Lecture 1 2 Date Mon 6 Sep Wed 8 Sep Time 9.15-12.00
9.15-12.00
Reading --- Ch 1 and 2 Malerba (2002) 3 6 Mon 13 Sep 9.15-12.00
Ch 3: 54-60, 86-92 Olleros (1986) + Rosenbloomm and Cusumano(1987) CASE 1 Wed 15 Sep Mon 20 Sep Wed 22 Sep 9.15-12.00
9.15-12.00
9.15-12.00
Ch 3: 60-86 Pavitt (1984) Ch 4:94-126 Courtney et al.(1997) Mon 27 Sep Wed 29 Sep Mon 4 Oct 9.15-12.00
9.15-12.00
9.15-12.00
Ch 5:133-146 Powell et al.(1996) CASE 2 Ch 6:160-186, 190-196, Ch 7:220-223 Tushman O´Reilly (1996) Main Topic How is this course run? What are the key concepts?
Defining key concepts and the conceptual framework Handout of Case 1 Technological innovation: What is it? Why does it matter?
Student oral presentations of Case 1 The innovation process Innovation strategy: Firms, what they do and why Handout Case 2 Network and new combinations Student oral presentations of Case 2 R&D Management
Lecture 10 Date Wed 6 Oct Time 9.15-12.00
11 12 13 14 15 16 17 Mon 11 Oct Wed 13 Oct Mon 18 Oct Wed 20 Oct 9.15-12.00
9.15-12.00
9.15-12.00
9.15-12.00
Mon 25 Oct Wed 27 Oct Sat 30 Oct 9.15-12.00
9.15-12.00
900.-14.00
Reading Ch 5:147-159, Ch 6:186-190 Chesbrough Teece (1996) Ch 7:197-220, 224-234 Maidique M. and Zirger (1985) Case 3 Ch 9 Teece (1986) Ch 10 Main Topic Collaborations The Management of Product and service Innovation Student oral presentations of Case 3 Value from innovations Future challenges and applying this knowledge to companies & Review No lecture planned (Buffer) No lecture planned (Buffer) Exam Viktoriagatan 30
What is Innovation?
...and what is invention?
What is Innovation?
The creation of a new idea and its reduction to practice and it includes all the activities required in the commercialization of new technologies (Freeman and Soete, 1997) An 'innovation' is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations. OSLO manual OECD 1997 ...and what is invention?
Something new, as a product of imagination or a device or process originated after experimentation. Webster
Innovation in research
• • • • • •
New to:
New to the world New to the industry New to scientific community New to the market(place) New to the firm New to the customer • • • • • • • • • • • • • • • • •
New what:
New technology New product line New product benefits/features New product design New process New service New competition New customers New customer need New consumption patterns New uses New improvements/changes New development skills New marketing/sales/distribution skills New managerial skills New learning/experience/knowledge New quality/benefits
• • • • • •
New to:
New to the world New to the industry New to scientific community New to the market(place) New to the firm New to the customer
OUTCOME & PROCESS!
Innovation in research
• • • • • • • • • • • • • • • • •
New what:
New technology New product line New product benefits/features New product design New process New service New competition New customers New customer need New consumption patterns New uses New improvements/changes New development skills New marketing/sales/distribution skills New managerial skills New learning/experience/knowledge New quality/benefits
Definitions
TECHNOLOGY ?
MANAGEMENT ?
THE MANAGEMENT OF TECHNOLOGICAL INNOVATION ?
Definitions
TECHNOLOGY A replicable artefact with practical application of knowledge in developing and using it MANAGEMENT The strategic and practical approaches to the construction, competitiveness THE MANAGEMENT OF TECHNOLOGICAL INNOVATION The construction of adequate flexibility and efficiency needed for conducting the firm’s scientific, technological, organiszational, financial, and business activities in order to introduce and commercialize a new product or process
BREAK!
Why study Innovation Management?
• How has the mobilephone changed your life?
• What would you do if it didn´t worked?
• How has it changed society?
Why study Innovation Management?
Business – competitivnes Relative: Compared to competitors Absolute: There must be a market for what the firm does
Changes!
Globalization Bigger markets Nisches Shorter product life cycles New products (<5 Years old) account for 30% of the profits of US firms, and in high-performing firms to account for nearly half of sales and profits (Cooper& Edgett, 2007).
Finance markets Are more likely to be granted credit and easy access to finance than non innovators (Czarnitzki & Kraft 2004).
Have higher productivity and productivity growth than non innovators (Criscuolo, Martin & Haskel 2003).
???
...
Faster!
Growth?
Share of new products in sales, 1994-1996
...and Wealth creation/destruction
Growth of employment and GDP!
High-technology industries grew more than two-and-a-half times faster than manufacturing industry as a whole between 1980 and 2003 (NSB, 2006) Trade in hi-technology goods (requiring high level of R&D) doubled in real terms in the OECD countries between 1994 and 2003 (OECD 2005) High-technology industries in the USA increased from 11% of domestic production in 1980 to 13.5 % in 1990, and to 34% in 2003 (NSB, 2006) The return to R&D investment, both social and private , are consistently assessed to be high. Mansfield et. Al (1977) found that the social returns from R&D investment to be 56 %, and private returns to be 25%
Structural change Prosperity & declines!
• Innovative countries and regions have higher productivity and income than the less innovative ones (Fargerberg, 2005).
• Entire industries, such as the Swiss watch industry, and geography regions, such as Silicon Valley in California, can be invigorated or depressed by technological change (Saxenian 1994; Utterback 1994).
...and new economic theories
New Growth Theory Evolutionary economics ”Traditional Neoclasical Economics” consider technology as an ”exogenous” factor GDP=F(Land, Capital, Labour)