Transcript TFP - GUL
Lecture 2 Innovation Management GM0401
Johan Brink Wednesday 8 sep
This lecture
The external context of innovation • Techno-economic paradigm • Increased R&D spending • Innovation system • Handout case 1
Techno-economic growth
• GDP= F (Land, Capital, labor, TFP) Economy Share of national output GDP growth Share contributed by Capital Labor Germany 1960-90 US 1960-90 0,4 0,41 0,54 Argentina 1940-80 Singapore 1966-90 0,37 3,2 3,1 3,6 7,3 59 45 43 42 -8 42 26 28 TFP 49 13 31 30
Techno-economic growth
• Total Factor Productivity – Advances in knowledge – Catch-up effect (adoption of existing technologies) – Economies of scale 20-50% – Structural/improved allocation of resources 10-20% (from low productivity to high) 20-40% – Foreign trade effect – Unexplained
Techno-economic paradigm
• Revolution & Improvement – Opportunities • Application & Prosperity – Saturation of markets • Stagnation, Recession & Depression – Low rates & Speculation
Techno-economic paradigm
Joseph Schumpeter
proposed
cluster of innovations
as an explanation • Kondratiev: Techno economic ~50 year • Kuznets: Infrastructural investment ~20 • Juglar: Fixed investment ~10 • Kitchin: Inventory ~3 - 5
Increased R&D spending
• In 1676, Isaac Newton wrote famously to Robert Hooke, “If I have seen further it is by standing on the shoulders of giants.” • (Forever) Increasing returns?
– Fishing out ideas –increase R&D cost – Takes increasingly long time to learn accumulated knowledge – Specialization –”Death of renaissance man” – Teamwork & management
Increased R&D spending
Global R&D spending by top 25 corporations: 2006 Company (country)
Toyota Motor (Japan) Pfizer (United States) Ford Motor (United States) Johnson & Johnson (United States) Microsoft (United States) DaimlerChrysler (Germany) GlaxoSmithKline (United Kingdom) Siemens (Germany) General Motors (United States) Volkswagen (Germany) Samsung Electronics (South Korea) Intel (United States) Sanofi-Aventis (France) International Business Machines (US) Roche Holding (Switzerland) Novartis (Switzerland) Nokia (Finland) Matsushita Electric (Japan) Honda Motor (Japan) Sony (Japan)
R&D rank 2006
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 6 12 10 14 13 11 17 18 15 16 20 19
2005
4 2 1 8 7 3 9 5
R&D expense ($million s) 2006
7,486 7,423 7,200 7,125 7,121 7,007 6,611 6,604 6,600 6,030 5,943 5,873 5,823 5,682 5,359 5,349 5,122 4,858 4,638 4,571
Sales ($million s) 2006
201,254 48,201 160,123 53,194 51,122 199,246 45,263 114,779 207,349 137,846 91,038 35,382 37,293 91,424 34,192 36,031 54,049 76,543 93,174 69,715
R&D/sales ratio (%) 2006
3.7
15.4
4.5
13.4
13.9
3.5
14.6
5.8
3.2
4.4
6.5
16.6
15.6
6.2
15.7
14.8
9.5
6.3
5.0
6.6
Innovation systems
What is a system?
Innovation systems
What is a system?
Macroeconomic and regulatory context Education and training system International networks Science Cluster of industries Communication and infrastructure Firms and innovations system Supporting institutions Product markets Factor markets
Innovation systems
Stemcells 2001 Laws History Macroeconomic and regulatory context Education and training system International networks Science Cluster of industries Communication and infrastructure Firms and innovations system Supporting institutions Product markets Factor markets
Innovation systems
• Regional Marshall,1890 ...and again in the 70ties – Industrial districts
Innovation systems
Clusters • Traded • Non-traded Diamond model; M. Porter (The competitive advantage of nations)
Innovation systems
• Technological – Generation – Diffusion – Utilization
CASE 1
What to do?
• Answer the questions: 3 pages, New Times Roman 12 • Prepare slides/presentations (~20 min) • Send text and slides no later than 18.00 Tuesday 14/9 • There are two groups per company – Only one group will present, the other will lead the discussion (ask questions, and complement with their ideas) • Use all sources of info such as the web, papers..
Questions
• Describe the development and the potential future of the firm in terms of PLC • Describe the development and the potential future of the firm in terms of TLC • How does the Innovation system look like? • Are there any barriers limiting the diffusion of this product? What do they look like?
• What would you advice the firm to do in order to increase sales (product diffusion) in; – The short run?
– The long run?
Case firm Groups Neonode: neonode.com (Mobile industry) Tesla: Teslamotors.com (Automotive industry) Ocean Harvesting: oceanharvesting.com (Environmental technologies) Group One Group A Group B Group gg The 6 Stooges The Swedes & the Mexican
Some additional material
• • • Wave energy http://www.oceanharvesting.com
http://www.iea-oceans.org/_fich/6/Annual_Report_2009_v2.pdf
http://ec.europa.eu/environment/etap/ • • • Electric Car http://www.Teslamotors.com
http://www.acea.be/ - Printed http://www.innovateuk.org/ourstrategy/innovationplatforms/lowcarbonvehicle s.ashx • • • Telecom http://www.neonode.com/ http://www.gsmarena.com/neonode-phones-22.php -Neonode old products Ericsson Trends - Printed