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GU STIA305 06
- 1. The Dynamic of Technological Innovation Professor Charles Weiss
- 10. Policy Implication of ‘Technology Push’ Model of Technical Change: Invest in Basic Research, and Economic Growth will Follow Result: Bucolic Corporate Research Labs, Removed from Production
- 18. The Technology S-Curve
- 22. The Idea of a Dominant Design Can be Extended to Entire Industries An entrenched legacy technology in a complex sector can give rise to a technical/economic/political paradigm , This makes it tough to introduce systems innovations, although innovations do continue in components.
- 26. 2. Second Generation Innovation: New Technology for Existing Functional Capability, e.g., Propeller ---> Jet Engine. Most Alternative Energy Technologies are in this Category, and Must Compete on Price and Performance from the Beginning, [NB: Major secondary innovations are sometimes mis-characterized as radical.]
- 33. The ‘Rebirth’ of Manufacturing (1970s-1980s) Japanese Innovations Re-Establish Manufacturing as a Key to Competitiveness
- 40. Information Technology Revolutionizes the Service Sector, Unleashes a Flood of Innovation, and Restores US Pre-eminence “ Generative” Technology Encourages User Innovation in a Broad Range of Industries
- 42. Innovation at the Level of the Overall Economy: Kondrateev Long Waves
Notas do Editor
- Companies Build on their Existing Skill Base, Core Competence, Culture, Customer Base
- An entrenched legacy technology in a complex sector can give rise to a technical/economic/political paradigm , supported by political influence, tax advantages, subsidies, favorable regulations and public expectations, and adept at fending off systems research and innovation. This makes it tough to introduce systems innovations, although innovations do continue in components.
- Energy: Addiction to Fossil Fuels Continues Despite Innovations in Niche Markets like Solar Energy and Improved Batteries) Health: Health Systems are Inefficient Despite Innovations in Biotech Transport: Improved Vehicles but not Highway Systems Food: Neglect of Research on Organic and Sustainable Agriculture
- Killer Application’ is Often Required to Build the Market (e.g., Spreadsheet, e-mail) Marketing Must Overcome Barriers Xerox: Sell Copies, not ‘Printing Presses’ Pre-Paid Cell Phone Lowers Up-Front Costs Prius Sells ‘Feel-Good’ Label, not just Fuel Efficiency Customers and Amateurs Discover New Uses Web, Spreadsheet, Post-It, FaceBook, Skype They May Even Organize to Improve Products! Open-Source Software, Surfboards! (Alternative to IP) Distrust Market Forecasts ( “Five 32K Mainframes Will Satisfy World Demand for Computers.”)
- A Sustained Stream of Incremental Improvements May Multiply Productivity and Sustain Competitiveness for Decades (e.g., in Mining, Railroads) But There is a Danger of Technological Lock-In (QWERTY Effect) Especially if Supported by Subsidy
- In Classical Product Cycle Theory, Radical Innovations Typically Come from Outside the Industry Customers for Existing Technology Often Demand Relatively Minor Improvements, not Radical Change [but see our later discussion of ‘disruptive’ innovation] Radical New Technology is Often Introduced so as to Resemble its Predecessor Horseless Carriage Word Processor [‘Cut and Paste’]
- US Companies Undertake Radical Innovations Manufacturing is ‘Reborn’ from its Previous Second Class Status: Process is Important, Too! Globalization Speeds the Product Cycle And the Export of Manufacturing Technology Information Technology Revolutionizes the Service Sector Service Industries Include Insurance, Brokerage, Logistics: They’re Skill- and Capital-Intensive; They’re Not Just ‘Hamburger-Flipping’ They Require Research!
- Companies have learned from experience and do explore radical innovations now – but usually only if they provide improvements sought by existing customers. Established companies tend to move up-market to more profitable products with more features. ‘ Disruptive’ innovations originate in lower-end or otherwise less profitable markets, and improve until they replace the dominant technology. (examples: low-cost airlines, 3 ½” floppy discs) [NB: The term ’disruptive’ is sometimes mis used to refer to any technology that threatens existing companies.
- Toyota Ends Quality-Price Trade-Off by Building Quality into the Product Every Worker Can Stop the Production Line! Total Quality Control and the Five Whys Result: Real-Time Redesign as Flaws are Discovered Just-in-Time Inventory, Produce to Order Traffic Jams on Poor Roads as a By-Product Dealers and Suppliers are Long-Term Partners in Design and in Product Improvement The Best Japanese Engineers Begin on the Factory Floor, not in Design
- Eliminate Time Delays Concurrent Engineering Design Design Simultaneously for Quality, Manufacturability, Life Cycle Contrasts with Earlier Practice of ‘Throwing the Product Over the Wall’ Separating Design and Manufacturing Once Production Starts, Redesign in Real Time as Bugs are Discovered