HD28
.M41A
no.
W\-
Dewey
'
ALFRED
P.
WORKING PAPER
SLOAN SCHOOL OF MANAGEMENT
FACTORS AFFECTING INVENTION AND INNOVATION
IN SCIENCE AND TECHNOLOGY: IMPLICATIONS
FOR THE PEOPLE'S REPUBLIC OF CHINA
by
*+
Jin
Xiao
Working Paper #1691-85
Yin
August, 1985
MASSACHUSETTS
INSTITUTE OF TECHNOLOGY
50 MEMORIAL DRIVE
CAMBRIDGE, MASSACHUSETTS 02139
>
FACTORS AFFECTING INVENTION AND INNOVATION
IN SCIENCE AND TECHNOLOGY: IMPLICATIONS
FOR THE PEOPLE'S REPUBLIC OF CHINA
by
*+
Jin
Xiao
Working Paper #1691-85
Yin
August, 1985
* The
author is a Research Associate and a Chief of the Office of Science and
Technology Management, Shanghai Institute of Ceramics, Chinese Academy of
Sciences, and Visiting Scholar, MIT Sloan School of Management, 1984-85.
+ The author expresses deep appreciation to Professor Edward B. Roberts, the
David Sarnoff Professor of the Management of Technology, MIT Sloan School
of Management, for his encouragement and assistance with this paper. The
author also expresses appreciation to Professor Lauren A. Swanson, Department
of Marketing, College of Management, University of Massachusetts-Boston, for
his valuable suggestions on this paper.
M.I.T.
UBftAF»E$
SEP 2 4
1985
FACTORS AFFECTING INVENTION AND INNOVATION IN SCIENCE AND TECHNO LOGY;
IMPLICATIONS FOR THE PEOPLE'S REPUBLIC OF CHINA
Contents
1.
Introduction
1
2.
Highlights on Invention and Innovation
4
2.1. Definition of Invention and Innovation
2.2. Classification of Innovation
4
,
9
2.3. Process of Innovation
14
2.4. Theories of Innovation
15
3.
Internal Factors
18
3.1. Features of Academic Areas
20
3.2. Personnel Structure
26
3.3. Managerial Strategy
33
3.4. Internal Policy
41
3.5. Organizational Form
43
3.6. Scale of Unit(Size)
48
4. External Factors
55
4.1. Environmental Conditions
55
4.1.1. The Technological Climate
55
4.1.2. The National Policy
57
4.1.3. Industry Characteristics
59
4.2. Market Incentives
60
4.2.1. Demand-Full Innovation
60
4.2.2. Technology-Push Innovation
61
4.2.3. Users as Innovators
64
4.3.
Internal and External Communication
66
4.3.1. The Channels of Communication
66
4.3.2. The Necessity of Communication
67
4.3.3. The Possibility of Communication
69
4.4. Government Pole
70
5.
Some Suggestions
5.1. Correct Selection of Central Persons
72
73
5.2. Timely Establishment of an Industrial Liaison
Program
76
5.3. Conscientious Arrangement of Three Kinds of
Research
5.4.
78
Strict Separation of Responsibilities
Among Different People
80
5.5. Deliberate Seizing of Any Small Opportunity for
Innovation
83
5.6. Gradual Increase of Scientific Research Funds
85
References
90
FACTORS AFFECTING INVENTION AND INNOVATION IN SCIENCE AND TECHNOLOGY:
IMPLICATIONS FOR THE PEOPLE'S REPUBLIC OF CHINA
Xiao
Jin
1
.
Yin
Introduc t ion
history
The
realm
In
fields
constant
at
of continuous development from the
one
is
necessity to the realm of freedom. This process is never ending.
of
the
mankind
of
production
of
scientific
and
experiment, mankind makes
and nature undergoes constant change;
progress
they never remain
same level. Therefore, man has constantly to sum up experience end
the
go on discovering, inventing, innovating, creating, and advancing.
the
Natural
science
purpose
of
natural
science
freedom
from
attains
is
one of man's weapons in his fight for freedom. For
attaining
the world of nature, man must use
in
understand, conquer and change nature and thus attain
to
nature.
freedom
freedom
from
Usually,
conquers nature, changes nature, and
man
invention
through
nature
and
innovation.
With
technological
invention and innovation, mankind has pulled itself from the
mud
nut
Ages,
Age,
Third
huts
the
of
Industrial Revolution, and into what has been called the Atomic
Electronic
Age,
Industrial
important
and berry gatherers through the Stone, Bronze, and Iron
Computer Age, the Second Industrial Revolution, the
Revolution,
weapons
freedom
attaining
both invention and innovation are
So
etc.
from
nature, and are the important
symbols of mankind's civilization and progress.
Technological
invention
measuring
the
level
Statistics
show
that
inventions
and
of
science
developed
innovations
innovation
and
and
or
are
technology
industrialized
the
for
important
every
countries
marks
country.
have more
than developing countries, because the foi-mer
-1-
.
.
have higher levels of science and
Technological
organizational
science
and
plenty"
to
even
and
standards
in
afford
also
profitable
the
to
refers
a
whole.
the total
to
application
of
They may provide the key to opening the "door of
innovation
developing
nation.
Proper utilization of
represents great promise for improving economic
developing nations. Improved economic standards should result
means
the
lifespan,
increased
leading
poorest
the
innovation
and
involvement
technology.
invention
and
invention
technology than the latter as
productivity
for
relative
A better life would include
life.
freedom from sickness and disease, improved
contribution, and the means to acquire and enjoy
social
and
better
a
material goods and services.
Technological
They
An
invention
create
can
analysis
inventors
new industries and transform or eliminate existing ones.
business
of
operation
competitive
failures
significant
cited
instances
where
innovators failed to translate technological creativity into
and
profitable
innovation are also vital for survival.
and
and
Invention
1-3)
advantages
sales
and
diversification
.(
new
innovation
and
in
growing
a
can
industry,
application for existing products
in
lead
to
or
to
more mature
companies
short, technological invention and
In
development,
These
industrial
points
develop
have
successful
individual
firms,
inventions
and
been
development,
economic
proven
innovation will affect national
and
people's daily life.
innumerable examples. The ability to
by
inventions and innovations is crucial to the health of
industries,
and
to
the
innovations
we
attain,
ra te-of-change
of
technology
the
economy as
a
whole;
the more
more profits and freedom we
have
As
national
the
and
international
competition
-2-
increases,
accelerates,
as
and
the degree of
as
pressures
.
increase
greater
for
institute,
unit
every
or
innovations,
productivity, every firm, every scientific research
introduce
must enhance its ability to develop successful
commercialize new products and processes over
and
time
tasks of each firm or scientific research institute are to
basic
The
produce
new scientific results (especially inventions and innovations) and
train
competent
entrepreneurs
more
who
scientific
scientific
products,
(especially
people
technological
inventions
more
and
technological achievements of high quality and train
and
and
engineers,
rate by world standards). They must develop
first
are
scientists,
personnel.
They
must
achieve
more
new
more innovations. On the one hand, during
and
the
production of scientific results many competent people are trained. On
the
other
This
later.
when
hand,
criterion
reciprocal
is
judging
for
research
scientific
new talent we can get more achievements
train
we
process
and
dialectical
unity.
The
main
scientific and technical work of each firm or
the
institute
should
be
the
successful fulfillment of
these basic tasks.
Now
and
key question is how we can stimulate and get more inventions
the
innovations
under
given
the
conditions?
What
factors will affect
invention and innovation?
invention
and
are the results of creative
innovation
are themselves complex mental work. During the process of invention
labor,
and
know,
we
As
there are a lot of influential factors. At the same time,
innovation,
invention
and
innovation also involve highly complex decisions, including
what
science
art,
evolutionary
control,
the
environment,
and
technology
and
national
potential
to
develop, evaluation of the state of the
revolutionary change, market appraisal, production
and
risk,
international
competition,
-3-
political
and
economic
and the immediate operational
environment
specifically,
j
organizational
processes
that
might abet or
retard the process of invention and innovation.
With
many factors and interacting considerations, there is
so
understand
to
need
the definition of invention and innovation, what advantages
invention
exist
in
been
successful
organizational
innovation, how they take place, where there have
and
inventions
patterns
that
in
environments
tend
whether
innovations,
and
developing
innovations
extent
a
provide
can
guidance
whether
countries,
there
intensifying
for
certain
are
organizational
better spawn innovations in specific areas, to what
to
or cultural factors affect invention and innovation, and
political
management affects the innovation process. Other interesting questions
how
what
involve
serve
as stimulants, or barriers,
this
of
paper
innovation,
some
basis
and external environmental and operational factors
internal
suggestions
innovation. The purpose
affecting
factors
invention
and
the factors which are most important, and to give
analyze
to
main
identify
to
is
to invention and
about
getting
inventions
more
and
innovations on the
of the above analysis, especially as they may apply to conditions
in
the People's Republic of China.
Before
innovation
moving
in
to
science
a
discussion
and
of
technology,
factors affecting invention and
it
may
be helpful to summarize
briefly several issues that cover most basic conceptions in this field.
2.
Highlights on Invention and Innovation
2.1. Definition of Invention and Innovation
With
respect
to a definition of invention and
innovation, we observe
that
different countries, scientists and engineers, and academic areas may
have
different
different
understandings.
historical
periods
Even
may
in
also
-4-
the
have
same
country,
people
at
different descriptions and
expressions.
So
is
it
difficult to unify the definition of invention and
innovation at present.
The
Growth
,
economist
J.
Schniookler
in
his
book,
Invention and Economic
said: (4)
Every invention is (a)
a
new combination of (b) pre-existing
knowledge which (c) satisfies some wants.
When an enterprise produces a good or service or uses a method
or input that is new to it,
it
makes
a
technical change.
The first enterprise to make a given technical change is an
innovator. Its action is innovation. Another enterprise making
the same technical change is presumably an imitator and its
action
Larson
imitation.
is
entitled "Management for the 80 's-Challenge to
in his article,
Change", said: (5)
By definition, innovation means change
way and adopting
D. D.
a
— discarding
the old
new one.
Roman and J. F. Puett,Jr. in their book, International Business
and Technological Innovation
,
said (3 , p. 254)
:
Inovation is an inclusive term covering a wide range of
operational and environmental connotations. Innovation
is
possible in the context of social, economic, product, process,
procedural, and managerial situations. In some instances,
there is
a
very fine line of demarcation in the above,
-5-
.
especially
in
making
a
distinction between managerial and
economic innovations. There is also market tendency to think
of innovation primarily as product-directed innovation.
E.
B.
Roberts
in
his chaper, entitled "Influences on Innovation;
Extrapolation to Biomedical Technology", said:(6)
The process of innovation takes into account all steps
leading to the generation and initial utilization of a
new or improved invention. In the biomedical area an
"invention" might relate to
process, or
a
a
product,
a
manufacturing
clinical practice. Innovation requires
invention plus exploitation, which comprises such activities
as the evaluation of technology;
the focusing of technological
development efforts toward particular objectives; the transfer
of research results; and the eventual broad-based utilization,
dissemination, and diffusion of research outcomes. All of these
activities are potential areas of managerial or policy concern
for enhancing the rate of outcomes derived from technological
innovation
G. Mensch(7) defines basic
innovations as
Innovations which produce new markets and industrial
branches
..
.or open new realms of activity in the cultural
sphere, in public administration, and social services.
Basic
innovations create
a
new type of human activity.
-6-
A document published by the U.S. Department of Commerce said: (8)
The innovation process is only one phase of
complete cycle
is
a
cycle. The
invention, innovation, and diffusion.
Invention is distinct from innovation and is the first stage
in the cycle.
Invention involves the demonstration of
technical idea by designing, developing, and testing
example of either
is
a
a
process,
a
product, or
a
new
a
a
working
device. Invention
separate and distinct area from innovation, but it must be
remembered that invention is frequently the prelude to
innovation, which is primarily
a
conversion process leading to
application. A much simpler distinction between invention and
innovation revolves around the verbs"to conceive" and "to use".
Invention entails
a
conception of an idea, whereas innovation is
use, wherein the idea or invention is translated into economy.
The
Patent
Law of the People's Republic of China (promulgated by the
Chairman of the PRC on March 12, 1984) and its Implementing Regulation
(Approved by the State Council and promulgated by the Patent Office of the
PRC on January 19, 1985) said:(9-10)
Invention
—Creation
in the Patent Law of the PRC means
Invention, Utility Model, and Design.
Invention in the Patent Law of the PRC means any new
technical solution relating to
a
product,
a
process, or
improvement thereof.
Utility Model in the Patent Law of the PRC means any new
technical solution relating to the shape, the structure,
-7-
or their combination, of a product, which is fit for
practical use.
Design
in
the Patent Law of the PRC means any new design
of the shape, pattern, color, or their combination,
of a product, which creates an aesthetic feeling and is
for industrial application.
fit
Inventor or Creator in the Patent Law of the PRC refers
to any person who has made creative contributions to the
substantive features of the invert ion— creation. Any person
who, during the course of accomplishing the
invention— creation
,
is
responsible only for organization
work, or who offers facilities for making use of material
means, or who takes part in other auxiliary functions,
shall not be considered as inventor or creator.
course,
Of
The
thing here is neither definition itself, nor distinguishing
important
invention
we can cite more definitions of invention and innovation.
innovation.
from
Most
important
are
the
common features of
invention and innovation.
The
major common characteristics of them, we emphasize here, are that
they
contain
such
as
and
new
creative
ideas, new technical solutions, new products, new processes,
applications,
new
here
should
achievements
through
thing
them
as
innovation
labor, including creative mental and manual labor,
invention
have
which
connect
are really different from older ones. Every
with
one
word
"new".
In
other
words,
creative labor must be truely new in order to regard
or
From
innovation.
the same meaning and
to both of them simply as "innovation".
-8-
this
perspective invention and
for convenience hereinafter we refer
2.2. Classification of Innovation
earlier
As
range
operational
of
innovation
product
In
can
innovation
divided
be
wide
social innovation, economic innovation,
into
innovation, procedural innovations, etc. (12)
process
innovation,
a
connotations. Broadly speaking,
environmental
and
inclusive term covering
an
is
the past few years there is a growing body of literature on innovation.
Various
aspects
professors,
of
noted,
and managers. Recently, there is a tendency for classification
innovation
product
innovation have been investigated by many scientists,
of
into
innovation
process
and
especially in the technological areas:
types,
two
innovation.
We
describe
briefly these
innovation categories.
2.2.1. Social Innovation
Innovation
innovation.
need
crime
elimination
social
public
and
industrial
innovation
advancement
public sector problems is called social
of
Some
of the more obvious public problems in
solutions are urban renewal, environmental pollution,
terrorism
and
transportation,
of
inexorable.
innovative
of
solve
can
Some people think social innovation and government involvement
practically
are
which
disease
purity
water
prevention,
eradication
health
and
usually
private
sectors.
sector
have
entails
public
maintenance,
the
At
created
interaction and cooperation between
times,
individual
innovations
in the
which
necessitate
social
conditions
the public domain. Conversely,
of
shortage,
poverty, highway safety, and public education. The solving
problems
in
and
individual
innovations
environment of social innovations.
9-
is
there are instances when the
also
dependent
upon
the
Innovation
2.2.2. Economic
which
Innovation
A
innovation.
in economic
result
innovation
specifically,
present
effects. There is
important,
is
have
been
conducted
this
adds
to
some
of
effects
called economic
is
strong consensus that technological
a
and economic effects of R
social
the
generally,
are
not
known
&
D
well enough to
indicators with confidence. Many of the studies that
quantitative
differ
range, and conceptualization;
to method,
as
the difficulty of formulating a composite picture. However,
conclusions
the
but
innovation
and
economic
innovations, especially technological innovations,
of
lot
create
can
might
that
be
from
inferred
these
studies
are (3 ,p .255)
:
There
(1)
is
positive,
a
high,
contribution of
significant
and
innovation to economic growth and productivity.
The investment in R
(2)
&
innovation yields
D and
a
return as high or
often greater than the return from other investments.
There
(3)
are
products
improved
benefits
to
innovating
from
industries which purchase new and/or
the
companies. Often, the benefits to the
of innovative technology equal or exceed the direct benefits to
recipients
the innovating companies.
(4)
There
may be underinvestment in R
&
the future potential benefits to the firm and
(5)
Product
D and
innovation relative to
to society.
Existing measures of economic performance, such as Gross National
or
Productivity
contribution that
R&D
Indices,
are
only
partially reflective of the
and innovation make to the economy.
2.2.3. Product Innovation
Innovation
innovation.
which
Figure
1
lead
can
shows
a
to
new
products
is
called
product
typical product innovation curve. The whole
-10-
of innovation, and
changing role in corporate advance.
Seeking to understand the variables that
determine successful strategies for
innovation, the authors focus on three
stages in the evolution of a successful
enterprise: its period of flexibility, in which
the enterprise seeks to capitalize on its
advantages where they offer greatest
advantages, its intermediate years, in which
maior products are used more widely, and
its full maturity, when prosperity is assured
by leadership in several principal products
and technologies.
The changing character
its
Competitive emphasis on
Fluid pattern
Transitional pattern
Specific pattern
Functional product
Product variation
Cost reduction
Pressure to reduce cost and
improve quality
performance
Innovation stimulated by
Predominant type of innovation
Information on users'
users' technical
Opportunities created by
needs and
expanding
inputs
cal capability
Frequent major changes
in products
Major process changes
required by nsing volume
internal techni-
Incremental for product and
process, with cumulative im-
provement
and quality
Product
Drverse, often including
line
custom designs
Includes at least one
product design stable
enough
to
have
in
productivity
Mostly undifferentiated
standard products
significant
production volume
Production processes
major changes easily ac-
Becoming more rigid,
changes occumng in
commodated
major steps
high
General- purpose, requir-
Some
Special-purpose, mostly
automatic with labor tasks
mainly monitonng and
Flexible
Equipment
and
inefficient;
ing highly skilled labor
with
Efficient, capital-intensive,
and
subprocesses automated, creating "islands of
automaton"
ngid, cost of
change
is
control
Materials
may
Inputs are limited to
generally-available
be demanded from some
Specialized r.aterials will be
demanded; not available,
materials
suppliers
vertical integration will
Specialized materials
if
be
extensive
Plant
Organizational control
Is
Large-scale, highly specific
products
Small-scale, located near
user or source of technology
General-purpose with
specialized sections
to particular
Informal and entre-
Through
preneunal
ships, project
Through empnasis on
ture, goals, and rules
liaison relation-
and task
groups
Fig. 1. Product and Process Innovation Curves and Their Patterns
Source: W. J. Abernathy and J. M. Utterback(ll)
-11-
struc-
,
cycle
life
patterns:
product
of
Fluid
and
Pattern,
process innovation can be divided into three
Transitional Pattern, and Specific Pattern. (11)
Each
of
rate
of major product innovation decreases with the development of
them
technological
amount
field.
type
and
introductory
to
There
At
is
there
is
relatively
a
innovation
of
stage
innovation.
amount
has its own behavior. From this figure, we can see that the
over
relatively
a
given
predictable pattern of the
product
the
a
large
cycle.
life
amount
of
In the
product
start of the growth stage of the technology the total
the
innovation starts to decrease and the type of innovation shifts
of
combination of major process innovation and more incremental product
a
innovation.
production
This
continues
pattern
become
processes
until the product and its associated
intertwined
so
that
primarily incremental
process innovation occurs.
2.2.4. Process Innovation
Innovations
which
product
manufacturing
compare
with
typical
process
modify,
or
substitute for the original
process are called process innovations. In order to
product
the
improve,
innovation
situation, Figure
innovation
1
also shows the
curve. In the spectrum of innovation, process
innovation
affords
production
costs, increase profits, improve the organization's competitive
position,
not
enable
and
economically
products
may
especially
Process
normally,
considerable
the
feasible.
Process innovation can reduce
latitude.
firm to penetrate markets that were previously
In
short, the successful introduction of the
be directly related to product producibility
with
new
innovation
process
products,
may
occur
innovation
Producib ility
be contingent on process innovation.
may
large
in
.
is
a
or
small
large-enterprise
economies of scale provide innovational incentives.
-12-
organizations.
activity
But,
where
.
:
2.2.5. Procedural Innovations
which change the original, routine procedures to meet new
Innovations
situations
innovation",
it
development of science and
other units may change. In this case, operational forms and operational
climates
may
routines
or
shifts
in
change, albeit at times unperceptibly
also
.
Often, original
procedures are not reviewed or recast innovatively to reflect
operations and may become bogged down. Procedural innovation, in
mechanical
processes
effectively
is
With
innovation".
"soft
is
innovations. Compared with other "hard
the basic tasks of some firms, scientific research institutes,
technology,
or
procedural
called
are
utilizing
often
thinking
or
organization's resources. This, unfortunately,
the
neglected
a
processes, can be instrumental in more
area,
but
it
offers
fertile
innovational
possibilities
addition
In
classifications, different academic areas and
these
countries at times may have different methods of classification.
different
For
to
example,
the
invention-creation
Patent
into
Law
three
of
the People's Republic of China divided
types:
"Invention",
"Utility Model", and
"Design"(9). Roberts said(6):
Innovations
can
be
classified into the following overlapping set of
typologies
Products vs. processes vs. practices
Radical developments vs. incremental changes
New items vs. modifications of existing items
Industrial goods vs. consumer goods
Services
Graham
improvement
earlierdn
and
Senge(12)
innovation.
2.1.),
The
distinguish
between
basic
innovation
and
definition of basic innovation we have cited
improvement innovation can be thought of as incremental
-13-
:
. .
improvements
existing technology that do not alter its fundamental
an
on
nature.
2.3. Process of Innovation
development
The
through
interfunc tional
representing
From
idea-generation phase
stages
shows the typical
2
inherently
an
model of the whole
this figure we can see two broad arrows
schematically between them. Beneath everything is
place
a
temporal
will not, of course, always occur in the linear sequence implied by
sketch,
will
nor
innovation
may
generation
of
viewed
be
an
segment be equal in duration. The process of
each
as occurring in three stages or phases(13-14)
idea (recognition-idea formulation); problem solving or
—
ST
I
1
eajch
Search, "C;
experimentation,
X: calculation
Recognition of
technical
Solution
through
invention
feasibility
activity
"
Fusion into";
Work out bugs
scale up"
design concept
£.-
&.-
Recognition of
"
potential
demand
1.
is
sources of inputs for the process, which is shown
major
the
the
which shows the principal stages in the process. The events in these
scale
the
Figure
process.
from
commercialization
and
innovation .(13)
of
taking
innovation
an
introduction
to
process
of
-J?'
•
'
Implementation
and use ".-"
evaluation
Information
readily
"
available
~
Solution
•'
'
through
adoption
'l
-
Recognition-^-2. Idea formulation -^-3. Problem soiving-^4. Solution
—»-5.
Development -"- 6.
Utilization
diffusion
Fig. 2. Model of the Process of Innovation
Source: D. G. Marquis (13 P. 44)
,
-14-
&:
.
development
diffusion
of the idea (problem solving-solution)
of
development
the
;
and implementation and
useful form (development-utilization
in
&
diffusion)
Successful
innovation
recognition
of
formulation
which
recognized
creative
design
worth
committing
goals
problem
solving
invention
consists
to
bring
idea
which involves the
fusion
the
into
of a recognized demand and a
design concept. This is truly
a
a
identification and formulation of a problem
the
work
to
solving
activity
development of the idea involves setting
or
designing
and
is
Then comes the problem solving
on.
alternative solutions to meet them. If the
successful,
a
solution
— often
in the
form of
formed.
Implementation and diffusion of the development
engineering,
tooling, and plant and market start-up required
solution
original
an
introduction.
introduced
only
resources
— is
of
of
feasibility
problem
The
new
a
which the association of both elements is essential. The
is
specific
an
consists
in
concept
stage.
with
both technical feasibility and demand. Then comes the idea
technical
act
begins
Innovation
invention to its first use or market
or
never
is
really
achieved
until
the
item is
into the actual market or production process, and sales or cost
reductions are achieved.
2.4. Theories of Innovation
2.4.1. On Evolution
W.
of
J.
Abernathy
evolve.
within
a
Their
unit
capabilities,
the
attempted
innovations
units
character
and J. M. Utterback(ll) have examined how the kinds
to
by
goal
that
was
productive units apparently change as these
a
model
unit's
relating patterns of innovation
competitive
strategy,
production
and organizational characteristics. A new model suggests how
of
its
innovation
changes
-15-
as
a
successful
enterprise
matures;
innovation
companies
other
as they grow and prosper.
characteristics
basic
the
how
and
innovation,
capacity
Abernathy
for
of
themselves
to
fester
Summarizing their work and presenting
model
the
Utterback
and
change
may
patterns
on
concluded
industrial
of
that a productive unit's
and
methods of innovation depend critically on its stage of
small technology-based enterprise to a major high-voluiae
evolution
from
a
producer.
Many
characteristics
correlate
with such an historical analysis; and on this basis they explain
some
major
that
two units
producing
process
— the
small, entrepreneurial organization and the large unit
products
innovations. In
cf
evolution
innovation and the innovative process
questions which relate to the theory of innovation. They argue
standard
spectrum
of
of
Also,
innovations
incandescent
high
volume
— are
at opposite ends of
e
sense, they form boundary conditions in thp
a
unit and in the character of its innovation of product and
a
technologies.
successful
in
authors present examples of
high-volume
established
and
bulbs,
light
the
paper,
standard
steel,
a
products,
chemicals,
series of
such
and
as
the
internal-combustion engine.
2.4.2. On a Long-Wave Hypothesis
Long-waves
economists .(7 ,15)
many
of
economic
in
basic
innovations
According
growth and innovation have been discussed by
The main point of this hypothesis is that the flow
into developed economies appears to occur in waves.
this unproven argument, brief periods of high receptivity to
to
basic
innovations occur every 40-60 years: in between, economic conditions
favor
less
radical
innovation
is
This
wave
long
relative
a
decline
improvement
innovations.
natural consequence of
is
of
also
characterized
capital-producing
-16-
a
Lagging
productivity
and
long-wave in economic behavior.
by
buildup,
sectors.
overexpansion, and
The long wave creates a
shifting
Midway
historical
into
for
implementation of new innovations.
the
capital expansion, opportunities for applying new inventions
a
require
that
context
new
types
of
capital
may become poor. During
a
long wave
downturn,
basic innovation opportunities gradually improve, as old capital
embodying
the
trough
of
technologies of the preceding buildup depreciates. Near the
wave,
the
there
opportunities
great
are
for
creating new
capital-embodying radical new technologies.
G.
Mensch(7)
innovation
which
shows
frequency
the
presented
has
consistent
are
of
basic
variety of data on long-term trends in
a
with the long-wave hypothesis. Figure
innovations
in
periods
history
that uniquely favor basic innovations:
1830s,
the
1880s,
countries in 22
1740 to 1960. Figure 3 suggests distinct periods in
10-year
from
western
3
and
the
These
1930s.
in the 1760s,
the 1820s and
periods of intense innovation
correspond to troughs in the long wave.
Although
as
an
economic long waves can be explained without new innovations
explicit
implications
for
causal
factor,
innovation.
the
This
long-wave
theory
50
1300
1550
'900
1950
Calendar Year
Fig.
3.
important
theory is consistent with the general
r
mo
has
Frequency of Basic Innovation(1740-1960)
Source: G. Mensch(7 ,P. 130) or (12, P. 300)
-17-
*"->d
.
trend
of
development
the
of history:
the development of anything in the
world goes up in spirals and advances in waves.
3.
Internal Factors
As
noted
During
features
strategy,
which
personnel
areas,
organizational
market
factors
structure, managerial
form,
incentives,
affect it,
of
unit,
cooperation
and
scale
the role of government, etc. When we look at a complex
analysis, we mean identifying and assessing main factors
By
importance.
same
factors,
these
One
some of them must be the principal factors
or
and decisive role, while the rest occupy a secondary
leading
the
subordinate
position.
also
but
our
So
find
to
we
factors
into
river.
principal
its
and decisive factors.
use as part of strategy or tactics. For example, if our task
to cross a river, we cannot cross
bridge
are not only to analyse all of
tasks
must also solve the problem of the methods for carrying these
Finally,
the
many
affect innovation. But this does not mean that every factor has
may
playing
is
academic
complex interfunctional process.
a
innovation,
an
policy,
and
analysis.
and
is
we must learn and use dialectical, reliable, and scientific methods
thing,
the
of
conditions,
communication,
of
of
internal
environmental
innovation
process
whole
the
including
above,
it
or boat problem is solved,
Unless
problem
the
method
of
without a bridge or
it
is
a
boat. Unless
idle to speak of crossing the
is solved,
talk about the task is
useless
Through
innovation
internal
every
into
two
factors,
group,
university,
we can divide all of these factors affecting
generalization,
we
every
usually
internal
kinds:
mean
these
program,
within
a
factors
factors:
every
1)
and
external factors. By
They exist in every thing,
department,
every
institute
or
certain unit. The scope depends on what you
-18-
.
want
research
to
decided
ourselves.
by
decisions
other
In
they can be controlled or
Sometimes,
2)
factors.
these
on
words,
have the power to make
may
we
our case, we would like to focus on the
In
research institute as background. The basic methods of analysis
scientific
are
analyze;
or
suitable
also
corporate,
other
for
company,
university
or
organizations
Similarly,
can identify external factors which exist outside of a
we
certain unit or beyond our control.
In
the
factors
policy, organizational form, scale of unit (size); while external
communication,
internal;
while
secondary
causes.
of
of government. Generally speaking,
role
the
development
the
of
a
thing
That
factors
changes into
an
egg
a
chicken,
development
is,
with
external but
external factors are the conditions of change
the
are
a
because
is
is not
the
interrelations and interactions with other things are
its
basis
of change. External factors become
through internal factors. For example, in
operative
Countries
and
cause
internal
conditions, market incentives, cooperation
environmental
include
fundamental
and
rules mentioned above, internal factors include
these
to
of academic areas, personnel structure, managerial strategy,
features
internal
and
accord
suitable temperature
chicken, but no temperature can change
each
chiefly
due
a
almost
the
has
not
same
different
a
stone into
Similarly,
basis.
social
internal causes.
external
but
to
geographical
and
climatic
to
a
conditions
display great diversity and unevenness in their development.
But
relative
of
role
this situation is not static;
notion. In
a thing,
player.
concrete
a
internal and external factors are
given process or at
a
a
given stage in the development
sometimes external factors may become the leading and decisive
So,
most
the
conditions.
We
do
essential
want
to
-19-
thing
is
a
concrete analysis of
go deeply into complex matters, to
analyze
study
and
them
over and over again. Surely, we can draw correct
conclusions in the end.
3.1. Features of Academic Areas
3.1.1. Different Areas Have Different Objects of Study
Every
forms
thing
Science and technology are the same. Man's knowledge of
motion.
of
the universe is in motion and has its own particular
in
matter
is
knowledge
motion
of
matter,
of
motion.
constituting
as
it
observe
what
observe
the
areas
of
particular
of
study.
phenomena
when
we
science
are
to this
form of motion of matter, namely, to
difference between this form of matter and other
have done so can we distinguish between things. The
differentiated
precisely
on
the
basis
of
the
of motion of matter inherent in their respective objects
forms
Thus
forms
the
constitute
the
of
objects
of
to a certain field of
particular
motion
study
for
a
branch of
specific
For example, positive and negative numbers in mathematics; action
science.
and
does the foundation of our knowledge of a thing, is to
qualitative
Only
forms.
what is especially important and necessary,
But
particular
is
In considering each form of
we must observe the points which it has in common with
forms
other
its forms of motion.
of
reaction
positive
mechanics;
in
and negative electrical charges in
physics;
dissociation and combination in chemistry; offence and defence in
military
science;
and materialism,
idealism
the metaphysical outlook and
the
dialectical outlook, in philosophy; forces of production and relations
of
production
interdependent,
branch
in
social
science;
and
chemistry,
can
on.
All
these
forms
are
but in its essence each is different from the others. Each
of science can also be divided
chemistry
so
be
inorganic
further
divided
chemistry,
into some sub-branches. For example,
into
general
electrochemistry,
-20-
chemistry,
quantum
organic
chemistry,
biological
chemistry,
chemistry,
colloid
different
physical
chemistry, applied chemistry, theoretical
chemistry,
branches
etc. All
science
of
these are the objects of study of
precisely because each branch has its own
particular essence.
3.1.2. Different Objects of Study Have Different Specific Problems
Different
have
their
objects
only
of
branches
problems
specific
own
to
be
resolved due to the different
study. On the other hand, qualitatively different problems can
of
be resolved by qualitatively different methods. Therefore, the degree
difficulty
different.
areas
or
periods
Thus,
different
each branch or each academic area is
for
problems
the
branches
arising
science
of
will
in the
different academic
be resolved at different
of time. Some problems will be resolved easily and early. The more
difficult
the
overcome.
In
are
words,
different
in
resolved,
be
to
same
the
at
academic
the
later
period of time
they
,
number
field
working
in
affecting
U.S.
of
areas are different completely. This
granted
to
selected
1
shows
foreign countries by
for the period of 1963-1981. It should be noted that people
different
innovation.
achievements
patents
will be
the number of
view has been proven by many statistical analyses. Table
of
product
problems
other
achievements
point
resolved
be
to
quite
the
of sciences, different academic areas, of course,
than
areas
Those
other
different
face
who
people
work
who
in
kinds
easier
of
problems,
thus
areas may obtain more
have equivalent ability but work in
more difficult areas.
3.1.3. Unevenness of Development in Science and Technology
The
simple
process
to
of
science
and
technology
develops step by step from
complex, from the shallower to the deeper, from the one-side to
-21-
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the
from
level,
taste,
that
At
a
higher
to the rational stage. From long
stage
observe
to
time,
different
many
operate
extensions
long
simple
knowledge
the
things
and understand
them
men obtained was perceptual
knowledge
again
into
it
actively
and
subjective
types
machines which can be regarded as
of
mankind's sense organs. Start from perceptual knowledge and
of
develop
actively
lower to
After some development, mankind learned gradually how to create
knowledge.
and
knowledge;
rational
guide
revolutionary
then start from rational
practice to change both the
objective world. Practice, knowledge, again practice,
the
knowledge. This form repeats itself in endless cycles, and with
the content of practice and knowledge rises to
cycle
each
only
touch)
and
a
used five sense organs (the organs of sight, hearing, smell,
incompletely.
and
perceptual
the
mankind
ago,
and
from the macrocosm to microcosm, from
many-sides,
a
higher level.
Therefore, science and technology are developing rapidly.
But,
country
developed
become
while
lot of internal and external factors.
States
United
and
Japan,
have
rapidly
and technology during the past few decades and have
industrialized
countries
in
the
world.
This
evenness in any time is only relative and temporary. This unevenness
It
is
countries
could
heavily
will
closely
relate
create
technological
with
the
a
of development in science and technology is absolute and basic,
technology.
those
as
first-rate
the
development
areas
we
science
in
unevenness
such
of science and technology for every
development
of
quite different due to
is
countries,
Some
of
speed
the
to
very
affect innovation. The features of academic
the whole level of every country in science and
difficult for us to imagine that if we worked in
or ages which have no transistor and integrated circuits,
high
problem
quality
radios
encountered in
a
and
color
TV sets. Therefore, a
developing country may be resolved
great difficulty. But if the same technological problem were put in
-23-
a
—
Table
l
2.
Percent of Patent Applications of Subclasses
Ceramic Coating Materials in the World
Table
Year
5.
Percent of All Ceramic Patents in the World
developed
country,
experience
better
resources
and
important
reason
applications
world.
Table
during
the
percent
for
support)
ceramic
of
shows
innovation
than
the
coating
percent
of
few decades. From Tables
past
easily.
This is
(including
a
common
knowledge
developing countries. This is an
developing countries. Table
than
3
quite
it
developed countries have more innovations, patents,
why
patent
the
conditions
financial
achievements
and
resolve
by many scientists. In other words, developed countries
proved
created
have
may
we
2
materials
shows the percent of
countries of the
by
all ceramic patents in the world
2
and
3
we can clearly see that
of patents in the developed countries, especially in U.S. and
Japan, is much greater than that of developing countries.
3.2. Personnel Structure
Of
all
structure
main
all
things
of
reason
we
believe
that
personnel
is
that everything in the world is created by people. Of
the world, people are the most precious. Under the guidance
in
thinking,
correct
innovation,
most important factor. There are many reasons for that.
the
is
The
affecting
factors
as
long as there are people, every kind of possible
miracle can be performed.
stated above, successful technological innovation may be viewed as
As
occurring
development
development
are
well,
can
some
we
deal
three
in
of
in
stages:
the
useful
idea,
generation
of
an
implementation
and
idea, problem solving or
and
diffusion
of
the
form (commercialized). Corresponding to each stage
qualitatively different tasks to be fulfilled. In order to do so
should
with
also
have different people in quantity and quality, who
different kind of tasks in each stage. Personnel structure
should be studied on several levels.
-26-
.
3.2.1. Different Function People Work Together
A
be
variety of studies suggest that five different key staff roles must
fulfilled if innovation ideas are to be generated, developed, enhanced,
commercialized, and moved forward
ir.
the organization . (6 ,16-1 8)
Creative scientists or engineers— idea generators or idea havers.
(1)
Idea generators or idea havers are central people and have critical
roles
in
begin
with
achieving successful innovation. All successful innovations must
information.
a
new
a
which
idea
Otherwise
an
often
is
on well-known technical
based
innovator would be like water without
a
source,
tree without roots. Successful innovation and the process of science and
technology
engineers
who
with
imbued
about
badly
scientists
large
a
contingent
creative
of
scientists
or
are both knowledgeable in modern science and technology and
creative, innovative spirit and who are capable of bringing
a
new
a
need
situation
whatever
in
engineers
and
in
China
they do. Our contingent of creative
falls
far
short
of
the
above
requirements
Entrepreneurs
(2)
called"idea-exploiters" or "product champions" in some
Entrepreneurs,
empirical
studies,
generated
and
do
push
something
with
the
ideas
the technical idea forward
in
they
or
others have
the organization toward
the point of commercialization.
(3)
Project managers
Project
the
managers, sometimes regarded as "business innovators", handle
supportive
relating
words,
to
functions
the
of
planning, scheduling, business, and finance
development activities of technical colleagues. In other
the project manager organizes almost the whole of R & D activities,
focuses
upon
the
aspects
will
go
specifics
forward,
of
the new development, and
indicates which
which can be economically supported, and which
-27-
must be deferred; he or she cood inates the needed efforts.
(4)
Sponsors
The
sponsor
neither
carrying
change,
but
other
coach
or
out
kind
one
is
of
more senior person who is
the research itself nor is directly championing the
who provides coaching, back-up, and large skirts behind which
key people can hide. His role is that of protector and advocate, and
bootlegger
sometimes
of
the
resources
necessary
to move technological
advances forward in an organization.
Gatekeepers
(5)
Gatekeepers
providing
links
special
whereby
communicators also play an important role by
essential
information messages are brought
outside sources to the inside world of developmental activities. They
from
are
the
or
bridges
human
market
(the
technical
joining
(the technical gatekeeper), market
and manufacturing sources of information to the
gatekeeper),
potential technical users of the information.
addition
In
to
these
five roles, some people also regard
technical
problem-solvers and quality controllers as additional key staff.
3.2.2. Different Age People Work Together
development
The
The
to
communicab ility
and technology is a continuous process.
of science is one of its important features. In order
to
innovations, corresponding to each type of the five key staff
obtain
more
people
mentioned
above,
we
should train and bring up successors who are
ages. The best way is that junior people (scientists, engineers,
different
entrepreneurs,
or
science
the continuous development of science and technology, and
guarantee
people.
of
managers,
gatekeepers,
etc.)
work
together
with senior
Young people learn from senior people first and then catch up with
surpass
them
later.
It
is
an
important thing that as part of their
-28-
Junior Person
V
\ Mid-Age Person
Senior Person
Proportion of the Different Age
People in a Unit (Qualitatively)
Fig. 4.
70th
responsibilities
their
ability.
depends
people
number
The
due
required
than
the features of their academic areas.
qualitatively
show
new
of
them
knowledge,
young people are
more
and the latter more than senior people. Ve
people
mid-age
people of each different age
appropriate
of
advancement
to
mid-age and young people to improve
help
the task of the firm and
on
Usually,
may
senior
as
if the area of the
triangle (Figue 4)
a
triangle stands for the total numbers of the unit.
Many
statistics
35
peak
that
a
majority
of
of productivity for many scientists and engineers is around
age
years
fact
the
to
were created by young or mid-age scientists and engineers .(19)
innovations
The
pointed
have
During that time, many scientists and engineers make their
old.
contribution to innovation and get the most achievements. Figure
highest
5
quantitatively shows the statistical results for many scientists.
Roberts(20)
indicated
contributions
productivity
organization;
basis,
this
declines.
greatest
is
after
the
that
technical
scientists
Ph.D.
joining
after
effectiveness
technical
new
that
shortly
of Aging Organizations", Prof. E. B.
Problem
"The
article,
his
In
time
his
major
the other hand, a young engineer's
ten
to
their
organization. Thereafter, their
an
On
five
make
years
after
joining
the
R&D
creative contributions are fewer. On
effectiveness of the
R&D
group depends on
a
continual inflow of new people.
3.2.3. Different Title People Work Together
Generally
level.
Title
professor,
varies
assistant
Chief-engineer,
factory
speaking, title can indicate people's ability and knowledge
senior
with
countries and units. Full professor, associate
professor
engineer,
are
named
engineer,
in a
university or institute;
technician
are
named
in a
technical unit; general manager, vice general manager, manager are
-30-
company,
Usually,
etc.
people who have higher level titles
named
in
guide
other people who have lower level titles. In the light of historical
a
experience
the practice over years, the basic characteristics of this
and
problem can be further summed up as follows:
R&D
Every
(1)
organization should have its own high level, middle
level, and primary level people.
Those
(2)
which have no high level titled people may invite
units
a
few high level titled people from outside as guest scientists.
Too
(3)
or
group
case,
this
not
good.
In
arising
among
them.
is
conflicts
high level or mid-level people working alone in
many
It
is
there are likely to be
a
a
unit
lot of
difficult to deal with that kind of
especially without large numbers of lower level people to carry
conflicts,
forward detailed technical projects.
(4)
We
figures.
A
isosceles
triangle.
of
the
can
show
the
structure
reasonable
stable,
Figure
6
of
structure
personnel
of
by
personnel
using geometric
shows
as
the
describes some structures of personnel. All
other structures (the rhombus, the trapezoid, jar shape, etc.) are
not stable or reasonable.
High Level
*\ Titled
People
Mid-Level
Titled People
Primary Level
itled People
(a)
A Stable and Reasonable
(b)
Unstable and Unreasonable Structures
Structure
Fig.
6.
Some Structures of Personnel
-31-
China
In
world
in
today
and engineers who are first-rate by
scientists
our
standards are too small in number as
a
whole. Mid-level title people
some units, especially in the system of the Chinese Academy of Science,
are
rhombus
(figure
between
the
matter
6(b)).
times.
people.
unstable
So
personnel in those units shows as the
of
some conflicts arise very often
units
these
In
level
same
many
structure
The
large.
too
author has dealt with that kind of
The
structures of personnel will negatively
affect innovation.
3.2.4. Different Field People Work Together
solution
The
extremely
complex.
problem
So
modern
in
science
technology is
and
innovation. In modern society the solution of
is
result
the
integration
of
of
a
opinions,
many
and proposals. When you intend to resolve a complex technical
which relates to successful innovation, you very often need people
problem
different fields who can propose alternative solutions from different
from
which relate some special academic areas. Every person may know his
angles
specialty
own
high
2" and
well. The solutions or suggestions proposed are often
"1+1
2",
>
the system plays
a
field,
another
and
as
in
a
the
conditions
environments)
also
physicist
gaps
(such
the
former. There is
a
made
plus
up of
does not
5
persons from the same
a
technician plus..., who can
chain of the program), under the same
complete
as
cooperation,
of
1
persons but from different fields
chemist plus
a
to
creativity
5
+
role as amplifier. That means
compare two groups, one which is made up of
we
(such
very
value. In this sense, some people have pointed out "1
in
equal
fill
problem
a
usually
is
suggestions,
if
of
a
the
qualification,
and
external
latter usually is greater than the
synergistic effect for the varied group.
-32-
other
3.3. Managerial Strategy
Management
should
be
is
major variable in the innovation process. Management
a
or moving force in
instigating
an
Organizations
usually
reflect
management's
innovational possibilities.
strategy
and
operational
policies. We should master modern methods of scientific management.
The
task
methods
as
success
incur
a
a
series of key questions concerning
a
dominant role
in
business unit. The management of a stream of
organizations,
depend on other companies for licenses, may want to
to
of
developmental
uncertainties.
So,
well-defined
technology,
costs
in
the
and yet may also be reluctant to
light
of
today's manager is confronted with
problems
of
and many large firms become ever more
stifling their ability to innovate. Some companies
forefront
the
the
must
to study those
exceptionally complex. Most new products or new
is
thereby
unwilling
variety
time
larger
bureaucratized
at
is
fail, many successful small firms do not make the transition to
mature
keep
failure of
or
over
businesses
be
innovation
We may say that managerial strategy plays
innovations
may
in
thinking for directing an innovation that govern an innovation
of
innovation.
more
strategy
whole. Therefore, it relates to
a
the
managerial
of
than
risk and product life
a
greater number and
before. The manager's job is not only to solve
problems, he must also identify the problems to be solved. He
somehow assess the cost of analysis and its potential return. He must
allocate
resources
to
questions before he knows their answers. In short,
management's primary job is to make organizations operate effectively.
3.3.1. Managerial Strategy Varies with the Stage of Innovation
As
types
stages
we
of
have
already indicated, there are some different patterns and
innovation
over
the
product
life cycle. During the different
of the product life cycle (introductory stage, growth stage, mature
-33-
stage,
are
decline
and
appropriate.
introduction
and
higher
volume.
until
strategy
is
ill-defined
market
performance,
even
major
the
process
incompletely
and
to
produce
product performance. The
understood
product
a
ventures.
technology
Their
and
ar.
with superior functional
product is expensive. During the growth stage,
the
innovations
(high quality,
begin
to increase the
interdependence between
low costs),
to reduce
the costs of the product, and
ensure adequate distribution are the main strategies in this stage. The
mature
stage
common
denominator
achieve
is
time of little or no sales growth.
a
success
of
is
of
one
In
this stage, the
the following strategies:
1)
the lowest delivered cost position relative to the competition, 2)
achieve
achieved
strategies
product/service
highest
the
(sometimes
over
an
ir.
product and the manufacturing process. The decision to standardize the
product
to
is
entrepreneurial
small
take
if
new product class life
a
of the products start to be manufactured
typically
are
to
many
basis of competition here
The
units
stage begins with the development and
product innovation that starts
a
runs
business
introductory
The
of
cycle,
stage), different strategies and organizational forms
through
product
simultaneously. Tables 4 and
product
the
life
cycle
quality
and
differentiated
redesign),
5
or
3)
position
follow
both
show the variation of strategies
typical
functional
requirements
of
alternative technological strategies .(21-22)
3.3.2. Setting the Feasible Goal
Every
country,
environment.
suit
their
specific
what
Also,
own
firm, and every unit has its own situation and
every
they
have their specific goals and tasks which should
situations and environments. Those who are working toward
goals should know:
methods
1)
where we are now, 2) where we are going, 3)
we should take for achieving the goals. People should firmly
-34-
to
i
V
Ho
.£
be
C
o
o
Ho
P
5
CO
o
o
c
o
a>
H
i
be
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<
o
2
2
i-
C
at
a>
p
u
as
V
LO
0)
o
u
in
—
i
-i
I
£
2?
.=
25
'5
"re
"C
-
£
'r
c
keep
these
anticipated
(TI)
questions
three
A
results.
producing
in
battery-operated
their mind. Only then can we achieve the
in
good
example is the success of Texas Instruments
product
new
its
device
hand-held
designed
device is
named
to
"Speak
help
Spell",
and
children
a
learn to
spell.
The
speech
synthesis. Stimulated by early indications of strong market demand,
which
TI,
in
heart
Breedlove
way
circuits
successful
new
electrical
(an
feasibility,
very
tiny semiconductor chip capable of
tried to create this new product. After P.
engineer) provided the core idea that paved the
this product, successive stages involved proof of
of
funding
design-to-cost,
getting
a
two are important technological bases for
(these
product),
development
to
the
pioneered in commercialization of silicon transistors and later
integrated
the
of
resolving key technological problems,
project,
the
assessing
the
market,
manufacturing
product,
the
and
ready for the product launch stage, etc. The goal of each stage is
clear
feasible.
and
So
"Speak
and
Spell"
thereafter
became
a
successful new product.
The
emphasis
feasible.
If
achieve
a
with
like to achieve must be
results,
he
must
bring
his
ideas
into
laws of the objective external world. If they do
the
correspond, he will fail in his practice. After he fails, he draws his
corrects
external
world,
meant
his
ideas
can
and
"failure
by
is
to
make them correspond to the laws of the
thus turn failure into success;
this is what is
the mother of success" and "a fall into the pit, a
your wit". For example, after World War II, under the leadship of
in
Charles
aimed
that the goal we would
man(or any unit) wants to succeed in his work, that is, to
lessons,
gain
is
anticipated
the
correspondence
not
here
De
at
international
Gaulle,
achieving
France
a
launched
high
level
an ambitious science policy program
of
technological
excellence
and
technological independence. In the Post-World War II period,
-37-
France,
perhaps
broadest
world.
technological
success.
especially
However,
energy.
resources
nations
retreated
to
advantages;
name
viable
a
eminence
a
weapons
a
achievements,
systems and atomic
nation France did not have
that total technological
policy
and have as a consequence generally
defensible position of concentration to develop spheres of
a
such
3.3.3. Paint
military
of
to the realization
come
where
defence
as
few. France appears,
a
technological
compete worldwide in all technological areas. Developed
not
technological
significant
became apparent that as
it
to
is
were
development
generally
have
excellence
aspirations of any of the developed nations of the
There
the
in
United States and Soviet Union, had the
the
the De Gaulle-inspired program met with significant, but
fact,
In
limited,
the
with
along
international
have
they
competitive
industry, atomic energy, and electronics to
for example, to have moved in this direction.
Picture with Two Brushes at the Same Time
— "Work
Along Both
Lines" Strategy
order
In
to obtain more
innovations and develop new products, we can
two ways. One is to participate in the new technology and develop new
take
products
according
"If
can't beat them, join them" is
is
you
to
analysis of the market and the nature of the unit.
a
good defensive strategy. Another
to refine or modify earlier products. We named
these as the "work along
both lines strategy". The main reasons for this strategy are:
(1)
A
A new product may be
variation
those
is
variation on an old one, or reorientation.
with a set of dimensions basically similar to
product
a
a
of earlier products of the organization, though with refinements and
modifications.
typical
materials
example.
would
yearly
The
Various
be
model
alumina
another
changes
ware
typical
-3 8-
American
of
in
new
example.
cars
inorganic
A
would be a
non-metallic
reorientation
usually
.
implies
fundamental changes, in which some product dimensions may be
more
eliminated and entirely new ones added.
Cooper
(2)
industries
ball-point
plants,
technologies
and
diesel-elec trie
razors
leather
conclusions
ranged
vs.
razors, aircraft propellers vs. jet
examination of other information and then made
the
substitution
pointed
They
out
pattern
of
a
new
number of
for
old
that in most situations, after the
immediately; they continued to expand, despite growth
decline
of
technology.
new
the
time
the
dollar
when
pens
of the new technology the sales of the old technology did not
necessarily
decline,
fountain
fossil fuel power plants vs. Duclear power
electric
vs.
concerning
introduction
sales
for
(steam locomotives vs.
transistor,
the
vs.
study
for
polyvinyl chloride and poromeric plastics), coupled
vs.
technologies .(23)
in
selected
tubes
boilers
pens,
extensive
with
vacuum
,
safety
engines,
Schendel analyzed the sales data of seven threatened
and
sales
period
When
sales of the old technology did
from first commercial introduction to the time
of the new technology exceeded dollar sales of the old
from about five to fourteen years. The new technology often created
new
markets which were not availuble to the old technology. Sometimes, the
new
technology
shortcoming
initial
applications.
and
relatively
observers
to believe
expensive
was
led
crude at first. Often its
it would
find only limited
Thus, it may be advisable to take the "work along both lines
strategy"
3. 3. A. Venture Strategy
Venture
increasing
Roberts
those
has
strategy
is
one
of the important managerial strategies. An
number of writings have focused on this topic .(24-28) Edward B.
given
requiring
his
only
spectrum of venture strategies (24), ranging from
low corporate involvement, such as venture capital,
-3 9-
A
requiring high corporate involvement, such as internal ventures.
those
to
spectrum
"Entering
a
strategies for success was presented in his article
entry
of
Businesses: Selecting Strategies for Success" .(29) Entering
New
new business (new products or new applications) may be achieved by means
of
variety
a
mechanisms
is
demands upon the corporation. No one strategy
different
makes
ideal for all new business development situations.
Here
China
would
we
is
like
China
become
wiser
policy
to
its door
closed
mistake.
strategic
a few
say
to
words about the China situation.
large country, a sleeping lion, but now economically backward
a
poor.
and
is
as internal development, acquisition,
such
and minority investments of venture capital. Each of these
ventures
joint
mechanisms
of
and
handle
for
£
long time, a
mistakes and setbacks, Chinese people have
by
Taught
to western countries
affairs
their
better. China now takes an open
world. The Chinese government has decided that this policy
the
longstanding strategy and an important part of its economic reforms.
a
Venture
strategy
is one of
important decision-making approaches. Some
its
mechanisms are as follows:
(1)
Joint Ventures
For
example,
a
Fushun
Magnesite
Liaoning's
is
of
10-year
the
tons
Company,
the
industry,
will
rest
Fushun
to
raise
to
50,000
contract
start
a
joint venture soon to
.
Fushun County and
expected
12,000
and
mining
will
Japan
and
mine in northeast China's Liaoning Province (30) The
magnesite
develop
Company
China
a
's
First
be
Sino-Foreign
set
annual
venture
in
by the Liaoning Magnesite
up
Company in Iwak i
joint
,
Japan. The joint venture
mining capacity from the present
tons when it goes into operation in 1985. Under a
75 percent of the investment comes from the Chinese side
from the Japanese partner, who will also provide techniques
and equipment required
for processing, transporting, and packaging.
-40-
(2) Foreigner
A
retired
combustion
director
time
of
Factory
of
People's
the
Republic.
enterprise
with
The Wuhan Diesel Engine
staff of nearly 2000. It
a
20,000 diesel engines annually. The new director is determined to
produces
double
specialist on internal
Federal Republic of Germany has been named
the
medium-sized
a
65-year-old
a
has been hired to run a Chinese, state-owned enterprise
founding
is
is
engine factory in Wuhan, Hubei Province, the first
diesel
a
(who
from
engines)
the
Soon
engineer
foreigner
a
since
to Pun Chinese Factory(31)
current
the
after
year's output of diesel engines in
arrival, he wrote
his
a
a
very short time.
50000-word report on ways to renovate
the plant. Now this factory is already increasing production.
3.4. Internal Policy
Policy
tactics
and
are
life
the
of
the
country;
every people,
leading groups at all levels, must give them full attention and
especially
must never on any account be negligent.
general
The
various
will
every
unit
etc.)
may
and
are
and
line
of
every country as well as
specific lines for developing science and
formulated by the country's government. These policies, of
affect
within
innovation
(scientific
the
institute,
research
whole country. In addition,
university,
company, firm,
also formulate its own specific policies for developing science
technology
or encouraging various creative activities. These policies
will
affect
innovation
this
sense,
units
(Massachusetts
of
general
and
policies
specific
technology
course,
policy
Technology)
have
Institute
within
their
of
the whole unit, named
own
internal
internal policy. In
policies,
such
as
MIT's
Technology) policy, GIT's (Georgia Institute
policy, SIC's (Shanghai Institute of Ceramics) policy, and
so on. The characteristics of these
internal policies are as follows:
-41-
.
Generally
(1)
speaking,
should be consistent vitb the general
they
policy of their own country. They are details added to the general policy.
(2)
They have more flexibility and are more suited for every specific
(3)
They can be formulated or revised at any time by the unit itself.
unit
examples.
The following are some
3.4.1. Promotion Policy
who have made an important contribution to innovation should be
Those
promoted
first.
policies
to
talented
people
position
to
professor,
At
promote
present in China many units have formed some specific
exceptionally outstanding young people or to recruit
without
qualifications from primary level
overstressing
high level position, such as from assistant professor to full
from
technician
to
chief-engineer,
or
from group leader to
general manager or director of unit.
3.4.2. Reward Policy
policy
Reward
policy
an
important
in
the future.
Those
gained
have
who
merit
policies.
should
The
differences
(including material reward and moral encouragement)
area. It can further encourage people to be creative
important contributions to innovation and have
made
be
rewarded.
distribution
between
is
of
creative
Most
money
units
prizes
reward
have
their
own
should
fully
reflect the
contribution to the substantive features of
only for routine affairs, the diligent
the
innovation
and
responsiblity
and
the
lazy,
the
good and the bad, more work and less work, mental and
manual,
complex
unskilled,
heavy
and
simple,
and
light
leadership
work,
-42-
followership
and
and
so
on.
We
,
skilled and
should
prevent
equalitarianism
people's mind
on
which has long been
distribution
the
in
some Chinese
.
3.4.3. Other Internal Policies
Those
who
laboratories,
good
funds,
travel,
for
tickets
to innovation may be
better conditions, such as working conditions (more project
with
rewarded
contributions
important
made
have
living conditions, free
These can be named
on.
so
and
etc.),
offices,
big
a
working condition
policy, living condition policy and welfare policy, etc.
3.5. Organizational Form' (32-34)
Organization
objectives. It is based on
specified
of
activities
two
of
resources
organized
are
Organizations
has
be
organizational
Usually,
functions
complex
not
are
task
division
of
redefined
should
university,
department,
a
can
labor.
to
develop
f ormed
.
Human
interrelationships indicating
establish
to
individuals
of
are
and
communication.
groups of people. Every
own organizational form. An organizational form may be a
its
factory,
company,
also
composed
are
delineation
the pursuit of an
Whenever
organizations
and
a
task that calls for the joint
a
to show functional
authority,
and
of
individuals,
more
or
responsibility
country
realization
the
division of labor and
a
purposes.
administrative
for
requires
objective
efforts
of people and functions to accomplish
grouping
the
is
cope
an
office,
forms,
static.
be
scientific research institute, etc. It may
They
subdivided
Therefore,
or
a
personnel
subgroup within
in
a
large unit.
organizations,
and
their
are developed around the concept that
into
they
simpler
must
components
by
a
means of
be continuously regrouped and
with dynamic operational conditions. Each organization
its structure consistent with its
-43-
internal characteristics
.
relationships
the
and
with its environment. The design of
a
structure to
attain organizational goals should be in accord with two primary criteria:
Organizational
(1)
the
necessary
help
should
to speed up free information
innovation process within organizations, and to make
to speed up the
flow,
forms
transitional
adjustments
to stimulate
innovation. In this
case, talented scientists and engineers can work creatively.
Organizational forms should be established in accordance with the
(2)
principles
unification and efficiency, helping to raise
streamlining,
of
the competence of their functionaries.
The
major
organizational
forms
may
we
encounter are discussed as
follows
3.5.1. Functional Organization
One
objective
required
centralized
specialties
or
and
decisions
tends
to
develop
involve
that
such
as:
structured around the inputs
these inputs
finance, marketing, production,
and personnel etc. This form is more
development,
research,
engineering,
most
is
to perform the tasks of the organization. Typically,
functions
are
Functional form
pieces.
specialized
into
an organizational form is to divide the total task
of
highly qualified technical skill. But
multiple
functions
or
skills can only be
resolved at the top level.
3.5.2. Divisional Organization
The
by
organization.
the
terms
form is structured according to the outputs generated
divisional
of
division,
ceramics
the
products
electronic
division,
The
most
common
distinction of the outputs is in
delivered, such as single crystal division, glass
ceramics
inorganic
division,
coating
-44-
high
materials
temperature
structure
division, etc. However,
other
as
of outputs could serve as
types
projects
programs.
and
a
basis for divisionalization, such
market,
Also,
clients,
geographical
and
locations could serve as criteria for divisionalization.
This
form
organization.
more
is
decentralized
decisions
Many
compared
with
the
functional
can be resolved at the divisional manager's
preventing an overburdened top hierarchy. Under both the functional
level,
organization
and
divisional
the
organization,
a
person usually has only
one boss.
3.5.3. Matrix Organizations
functional and divisional organizations,
Unlike
design
central
which are structured
matrix organizations are structured
concept,
around
one
around
two or more central design concepts. The implementation of a matrix
requires properly designed managerial support systems and people
structure
sensitized
adequately
organizational form
Galbraith
adoption
the
a
matrix
leaning
paths
of
based
experiences;
executive.
act
He
in a more
successful
concepts;
total
and,
must
the
matrix
identify some of the characteristics they
multi-dimensional
on
Under
environment.
person has two (or more) bosses.
a
for
design
toward
matrix
the
and Nathanson(35)
important
judge
to
development
a
matrix
climate: the
profit reporting system consistent with
establishment
the
corporate
of
of
reward structure
a
profitability; the development of career
multi-functional,
multi-businesses
and
multi-country
most importantly, a basic change in the role of the top
balance the views emerging from different dimensions,
participative manner, develop a judgment for priorities, and
be prepared to act as an arbiter in conflicting situations.
-45-
3.5.4. Hybrid Organization
The
previously
presented
in
they
anchors;
design
important
are
models, abstractions of
pure
structure
Most
forms (functional, divisional, and matrix)
been
have
tested and studied. In fact, all of these organizational forms
extensively
are
organizational
basic
more complex reality. In practice, the
a
organizations stems from more than one of these pure models.
of
organizations present combinations of these three archtypes resulting
what
designate
we
as
a
organizations
divisional
centralized
the
at
divisionalized
have
number
a
corporate
corporations
organization.
Hybrid
reported
and
sampled
following
the
most
example,
functional
of
Vancil(36)
level.
For
specialties
around
300
percentages of
firms have decentralized functions.
As
54 %
R&D
64 %
Manufacturing
70 %
Distribution
79 %
Sales
82 %
we have already indicated, there is
organizational
An
Administration
organizational
archetypes,
balance
and
form
in
organizational
of
Lawrence(37)
investigated
prominent
conclusion
in
was
specialization
real case is usually a hybrid of the basic
these three alternatives to respond more effectively to the
among
contrasts
a
the challenge of organizational design is to seek a proper
performance
were
pervasive character of these
differentiates the resulting management style.
that
forms
a
the
in
their
that
and
their
two
tasks.
J.
W.
Lorsch
and
P.
F.
plastics companies (Rhody and Crown) which
industry
organizational
and
chosen
approach
to
to show similarities and
product innovation. The
because the Rhody organization achieved both greater
more
effective
coordination
-46-
than
the Crown company
does,
former obtained more innovations than the latter. At Rhody
the
developed
products
whereas
new
the last 5 years have accounted for 59 % of sales,
in
Crown,
at
,
the
figure
only 20 %
is
,
or just about one-third of
Rhody's.
3.5.5. Work Group or Scientific Team
All
at
the basic organizational forms mentioned above are structured
of
scientific
laboratories
scientists
and
the
engineers.
common
more
forms
scientific
team
which
specialty
become
an
within
given
a
innovative
factors
the
from
such
,
performance
86
R
reasonable
more
when
Why
thing?
innovative
What
innovative
R&D
establish
a
work
group
a
or
both personnel structure and
some
are
teams often cited
others in their
than
factors
distinguish
R&D
these
work
more
teams? Some papers have considered
characteristics
especially
of
the interaction among
&
D
the relative influence of project and functional managers
teams
were
in nine
technology-based organizations. Performance
investigated
for
three areas of influence within the
team and for influence in the overall organizations. Analyses show
project
project
perceived
reaches
one
is
9,p.240;38-40)
and
relationships
higher
does
It
Katz and T. J. Allen(41) examined the relationship between project
R.
in
is
How
institute.
research
diversity of team members, group age, characteristics of
as
.( 1
the scientific team is also one of
scientific
a
organization?
less
supervisor and
team members
in
important
being
as
work is carried out by teams (or groups) of
Therefore,
organization.
sub-hierarchy
consistently
R&D
unit) level. In fact, in most
institute,
(university,
corporate
the
performance when influence over salaries and promotions
as balanced between project and
its
highest
level,
however,
-47-
is
functional managers. Performance
when
organizational
influence is
.
centered
the
in
project
manager and influence over technical details of
the work is centered in the functional manager.
groups can be designed as long-run forms for long-range planning
Work
than
(more
years) or short-run forms in accordance with work goals and
5
objectives
3.6. Scale of Unit (Size)(42)
3.6.1. Advantages and Disadvantages based on Size of the Unit
This
issue is closely connected with the advantages and disadvantages
resulting from the size of the unit. Let us briefly analyse that.
speaking, there are both advantages and disadvantages based
Generally
on
organizational size. Actually, innovations take place both in large and
internationally,
have
international
different
specialists
is
However,
relative
to
evolutionary
unless
essential.
active
especially
operating
work
China.
its
way
implementation.
This
to
large numbers of
problem
access
extensive
or
to
skills
and
localized operation.
as
have
distinct from
competition
strategies
them
gives
This
a
different
from
some
inherent
disadvantages
innovation. They tend to be conservative and adopt an
product,
in
a
solve
to
organizations
large
extreme
needed
are
knowledge not available to
an advantage where
enjoy
They
operating
people
technical
of
locations.
instrumentation
operating
those
have extensive markets and extensive resources. They also
reservoir
a
especially
organizations,
Large
organizations.
small
forces
a
Additionally,
that
it
through
can
be
may take
the
revolutionary product approach,
a
change
they
a
are
operational philosophy,
complex,
with
60
many
long time for an innovative idea
system
discouraging
people seeking to introduce new innovations.
-A 8-
in
to
and
ultimate
approval
and
dampen the enthusiasm of
There
also
are
advantages
relative
to
pursuing
advantage
of
the
(usually
work
generally
government
They
often
market.
the
the
greatest
costs, lead-time in developing
internal
innovative
to
technical
or
communications. They are
ideas. However, they also
difficulties,
such
as
limited
resources, sometimes trouble coping
regulations, and lack of specialist management expertise.
are geared to
make-or-break
and
Probably
lies in flexibility, concentration
low
environmental
financial,
with
to
responsive
operational
managerial,
a
motivation,
j
decision),
in
extremely
encounter
organization
small
speed
objectives.
innovational
one-boss-rule)
(from
and disadvantages in small organizations
a
single technology or product which nay lead to
situation. Another serious disadvantage is limited access
Table
shows comparative advantage of types of firms in
6
instrument innovation. (42
,p .139)
3.6.2. Bring the Superiority of Large and Small Organization into full
Play
noted
As
above,
organizations.
category
for
Table
innovation
can
take place both in large and small
shows percentage of innovations in each firm size
7
each five-year period. The key task here is how we can bring
the
superiority
get
more
of
innovations
the
large and small organizations into full play and
the given conditions. Some empirical results
under
may be summed up as follows:
Most
(1)
measured
firms;
to
by
statistical
materials
total employees:
identify
the
size of the firms as
those with less than 1000 emplyees are small
with 1000 to 9999, medium-sized firms; with more than 10,000 (10000
24999,
25000 or more), large firms. Other analyses have defined "small
firms" as those with fewer than 200 employees (see Table 7).
(2)
The
large
organizations
enjoy
-49-
some
advantages
in
extensive
Table 6. Comparative Advantage of Types of Firms
in Instrument Innovation
Innovation process
resources,
critical
extensive
part
of
nuclear
reactors,
such
projects
of
projects
initiated
in
program
even
But
10000
which
have
usually
played
a
need more
as
synthetic
materials, chemical processes,
large organizations are normally able to
greater
and
size
technological
magnitude
than
smaller companies. An extreme case is the Apollo
11
which
more than two million components were required.
more
mundane complex engineering products, more than
be
needed also; such as advanced jet aero-engines,
other
components
electronic
or
for
in
and
science, turbine generators, and some electronic
space
undertake
space
innovations
of
etc. Generally speaking,
systems,
forces,
or more technical forces, and are beyond the resources
firms,
smal]
the
technical
and
types
some
in
support,
financial
market
may
exchanges, large computer systems, nuclear reactors,
telephone
some process plants. Some statistical materials(42 ,p .138;43-44) pointed
out
that
post-war
period;
innovations;
they
that
that
accounted for more than half the key process
Europe and Japan, both the imitation process and the
in
were
process
innovation
a
of their key innovations, perhaps as much as half, during the
share
large
(Bell, GE, RCA, IBM, etc) developed
corporations
larger
the
to a much greater extent by the
dominated
large
corporations.
(3)
The
small
concentration,
and
contributions
textile
communication.
innovation
to
enjoy their advantages in flexibility,
organizations
They
have
made
some
outstanding
such as in xerography, electronics, carpets,
machinery, paper, lumber, camera, and in scientific instruments in
particular.
As
a
generalization, innovation from smaller organizations is
apt to involve a simple though advanced technological source.
(4)
It
comparative
the
may be reasonable to postulate that small firms may have some
advantages
in
the
earlier stages of innovative work and for
less expensive but more radical innovations, while large firms have an
-51-
.
advantage
up
breakthroughs.
smaller
firms
absolute,
relative
and his col leagues(42 ,p .137 ;45) have
disproportionately large contribution to the
a
type of twentieth-century innovations. But this point is not
there
significant
are
performance
research
predominate
would
made
have
radical
both
Jewkes
strong case for the view that universities, private innovators, and
a
more
the later stages of innovation and in improvement and scaling
in
early
of
made
.
between
industries
in the
small and large firms. In some industries, where
development work are often very expensive, large firms
and
both invention and innovation. So, the organizational size
in
mainly
of
differents
depend
on
the nature of relevant science and technology or
the type of task at hand
3.6.3. Some Relationships between Size and Innovation Need to be Further
Studied
Project SAPPHO (Scientific Activity Predicator from Patterns with
(1)
Heuristic
Origin)
project
does
itself
as
a
systematic
attempt
to
discover
suggests
that
in
competitive attempts to innovate, size
ir
affect the outcome very much. Hamberg and Scherer(46-47)
not
only a weak correlation with size measured in terms of employment or
found
sales,
still
and
research
— and
less
intensity
innovation
size
designed
between successful and unsuccessful innovations. Evidence from
differences
this
was
also
thus,
with
showed
of
a
size
no
presumably,
correlation
between
large size firms and
measured in terms of assets. User-dominant
statistically
to the
R&D
significant
relationship
to
potential— of the manufacturing
company .(48)
(2)
The
expenditures
by
official statistics of research and experimental development
may not capture research or inventive work which is performed
managers, engineers or other staff when the work is incidental to their
-52-
.
main
work.
productive.
Also,
inventions
be that this part-time amateur inventive work is very
may
It
small firms may account for
innovations,
and
much
which
of
a
significant proportion of
may go unrecorded in formal
statistics
(3)
size
of
Some statistics measure the degree of innovation concentration by
R
employment,
less
program,
turnover,
marked
countries
D
&
by
some
size
and
not
by
size
of
firm in terms of total
or assets. The degree of concentration is thus much
of
R&D
program. On the other hand, for the major
statistics are available on concentration by size of firm,
although this classification is not consistent.
Table 8. Share of Small Firms in Innovation and Net Output of
Industries Surveved in UK
1958
1970 there were ir the United States 466 firms with more than
In
(4)
5000
employees,
them
had
relatively
(1000-4999
even
largest
the
R&D
small
employees)
R&D.
which performed at least some
of
all
But many of
programs, while some medium-sized firms
had rather large ones . (42 ,p .132)
In some
industries
firms perform little or no research, and in others even
small firms perform a good deal.
The
(5)
analysis
contribution
analysis,
by branch of industry showed big variations in the
firms to innovation (Table 8). (49) According to this
of small
industries
be classified into two fairly clear-cut groups:
may
Those industries in which small enterprises made little or no
(a)
discernible
contribution
innovation.
to
These included aerospace, motor
vehicles, dyes, etc.
Those
(b)
significant
industries
contribution
which
in
small enterprises made
innovation.
to
These
included
a
fairly
scientific
instruments, electronics, carpets, etc.
The
(6)
problems
size
monopoly
of
economists
and
considerable
incomplete
contribution
industry
to
of
in
the
economy
systematically
the
relative
innovation
various
question
pointed
there
evidence
the
nou
is
is
a
still
formidable because the
problems
remain
and small
firms varies
a
great deal from
industry. Investigations now cannot answer the question of the
contribution
innovation
large
its relationship to
Although
information,
statistical
of
and
problem which has preoccupied
a
time.
long
a
measurement
the
relative
aggregate
for
of
industry
of
competition is
and
managers
amount
and
structure
and
in
which
still
out(6,p.l5)
large
as
or
a
small
whole.
contribution
industries
calls
of
for
and
the
firms
to
research
and
How far is it possible to test
of
small
and
large firms to
economy generally? This
is
a
effective solution. Prof. F. P. Roberts
that size contribution is closely related to phase of
-54-
.
technology
of
a
a
in
Stage
I
of
t
technology gets to Stage II and especially
technology, the role of small companies no
dominant though still important. Instead, large companies (over
is
million
appears
the time
stage
mature
the
longer
$100
By
technology.
III,
(<$10 million in sales) are the
companies
small
contributors to major product and process change
principal
new
cycle:
life
tend
sales)
in
to
Precisely
dominate.
the same pattern
taking place in biogenetic technology. This is one method of
to be
effective analyses.
4. External Factors
We
Now
let
move
us
to
Usually,
innovation.
can
discussed above major internal factors affecting innovation.
have
influence
conditions.
them,
discuss
briefly
external
some
factors affecting
external factors are beyond our control; however, we
fully
Sometimes
we
them
use
may
and
adapt
to
the
environmental
able to transform external factors and
be
adapt them to meet our needs.
4.1. Environmental Conditions
Differences
facilitate
in environmental conditions
retard
or
technological
characteristics.
Figure
Innovation
innovation.
national
climate,
7
(or operational climates) can
policy,
may
be
and/or
impacted
other
by
the
industry
indicates some of the environmental impacts on
innovation
4.1.1. The Technological Climate
The
in
mind
conditions
most fundamental method of work which all people must firmly bear
is
to
determine anything according to actual conditions. Actual
here
mean objective situations or environmental climates. Vhen
-55-
The
1
Fig.
7.
lie
Opcratioii.il
Climate
Operational Climate
Environmental Impacts on Innovation
Source: D. D. Roman and J. F. Puett, Jr. (3, P. 259)
we
study the causes of the mistakes we have made, we often times find that
arose
they
and
place
acting
empty
like
subjective
were
in
given time
determining our working policies. If
to
the
given actual conditions. The saying "without stepping
his gate the scholar knows all the wide world's affairs", was mere
outside
can
and
a
want to achieve their anticipated results, they must adapt thinking
people
and
we departed from the actual situation at
because
talk
be
to
in
valid
past times when technology was undeveloped. But this saying
in
emphasize
undeveloped
the
present age of developed technology. Here we would
that
technology
the
the
in
talk" because of
saying
"was
mere
past
time
and the saying "can be valid"
empty
because of developed technology in the present age.
Innovation
is
also
no
exception.
-56-
Successful innovation requires
a
.
proper
technological
physics
thing
like an accelerator as
created
tube
of
(integrated
generation
integrated
circuits)— the
generation
computers
existed
"large
innovations.
desires
other
In
circuits"
to
second
circuits)
modern
to
generation
fourth
computer.
generation
We
third
(transistor),
could
scale
(large
not create fourth
because no large scale integrated circuits
1946
integrated circuits" are technological climates for creating
scale
integrated
in
through
devices at that time. Obviously, here "accelerator" and
core
for
been changed from first generation (electronic
has
it
device),
core
as
fundamental instrument. You have no way
a
electronic computer. Since the first computer was
the
1946,
in
good
unless you get use of the accelerator first. The same
success
true
is
a
some new ideas to generate an innovation which must use
have
achieve
cultural climate, and especially
and
For example, let us assume you work on high energy
climate.
and
something
to
political,
economic,
create
are
no
"accelerator"
included
in
the environmental conditions, our
kinds
these
scale
"large
if
words,
innovation
of
are
and
merely being "empty
thinking"
A. 1.2.
The National Policy
As
earlier
specific
country,
every
encouraging
every
grass-roots unit can formulate its own
for developing scientific and technological innovation.
policies
policies
These
indicated,
will
of
various
affect
course,
creative
innovation within the whole unit. Similarly,
can
also
develop
activities.
These
important
policies
policies
will
for
affect
innovation within the whole country. For example:
(1)
Closed door policies to industrialized countries retarded China's
development of science and technology.
In
modern
society,
no country, especially developing countries, can
-57-
make
our
progress without learning from other countries. On this basis,
great
should be to learn the strong points of all nations and all
principle
countries,
them
from
learn
to
that
all
truly good in science and
is
affairs,
military
culture and art. We
technology,
economics,
must
learn
to
how,
no
them
respectfully and conscientiously. We must not pretend to know when we
do
do economic work and scientific research from all who know
China's past policies regarding development of science
But
know.
and
technology
for
too
one
form
retard
who they are. We must esteem them as teachers, learn from
matter
not
politics,
emphasized Self-Reliance and Arduous Struggle too much and
long, especially during the Cultural Revolution.
fact,
this is
the closed-door or Self-Seclusion policies which effectively
of
development of science, technology, and innovation. During the
the
Revolution
Cultural
In
a
number of scientists, engineers, and innovators were
out of their laboratories. They had no chance, no time, no place to
forced
develop
innovations.
adopted
by
by the Cultural Revolution and the policies
Barr.aged
Gang of Four, China's system of science and technology is
the
characterized as inefficient. China's technological level has lagged
often
behind
level by 20-30 years. (50) The "Technology Gap"
the world's advanced
between
and developed countries was widened rapidly during the time
China
of closed doors.
An
(2)
open
door
to the world
policy
stimulates the prosperity of
science and technology.
Since
fall
the
particularly
in
of
the
Committee
and
the
decisions
and
issued
science
and
invigorating
past
State
domestic
radical
two
Gang
years
of
Four
(1983-1984),
of China have taken
Council
major
technology,
the
the
directives,
especially
economy
a
in
the
a
late 1976, and
Party
Central
number of policy
stimulating
the development of
further
with the policy of
step
and opening to the outside world. The
-58-
modernization
China's
1
984 . ( 51
accepting
China
)
embraces
integral part of
July
1,
science and technology,
snc!
overseas
from
reforms
science
in
in
technology as
and
a
since
key to bolster its
adopted by the Party's 12th Central Committee at its
Feform"
Plenary Session
train
and
in
October, 1984.(53) That item stressed the need to
large number of enterprise directors, managers,
in place a
put
chief-engineers,
economists,
accountants
and
who
competent
are
modern production and management within
directing
and
at
too
not.
period. All of these policies will lead to progress in science and
a
technology,
and
sweeping
plans
Third
long
an
"Respect for knowledge and talent" is listed in the "Decision
Economic
organizing
been
has
applications
patent
competition
economy. (52)
On
technology
and
economic development program. China Patent Eight's Agency
current
been
has
science
of
initiative of the localities, departments, units,
greater
to
individuals
effective
making
in
these changes in China will have
short,
use
of intellectual resources. In
profound effect on innovation
a
ir
the future.
4.1.3. Industry Characteristics
industry.
such
real
the
In
as
Organizational
focusing
by
technologically
innovative
same
world,
industry.
within
Also
patterns
on
can
be
new
industry
an
environments vary from industry to
studied in
technologically
industries,
static
firms
operational
a
variety of ways,
innovative
industries,
old
industries,
industries,
and noninnovat ive firms within the
industry organizational variances, based on national
or cultural characteristics, should have an impact on innovation.
Some
industries
Innovations
approach
— the
in
this
are
type
modified
likely
of
to
be
environment
variation
of
-59-
the
technologically
tend
toward
earlier
conservative.
an evolutionary
products.
In
some
toward
from
investment
a
risk
is
D
&
Innovations in this kind of environment
companies.
other
than
The strategy may be
innovation. Only successful innovations are copied
than
minimized. The volatility of the market could also affect the
devoted
resources
R
in
rather
imitation
rapid, constant innovation is
is
revolutionary approach. Some companies enjoy greater returns
tend
has
change
for growth and survival.
necessary
and
technological
where
industries
to
innovation. In areas where the product's life cycle
become alarmingly compacted, strategy might be directed toward keeping
the pipeline full of new products.
short, different types of environments or industry characteristics
In
affect innovation. Companies or firms may take aggressive (offensive)
will
strategies
innovation
innovation
defensive
or
strategies in accordance
with the concrete situation which they face.
4.2. Market Incentives
4.2.1. Demand-Pull Innovation
Most
successful
saying
old
market
or
lines.
markets
from
Once
of
innovation.
This
is
innovation
Thus,
need
real
we
a
.(
that
54)
It
market factors appear to be the
is
estimated that 60 to 80 % of
large number of fields have been in response to
and needs. Countless innovations fail because no one wants
them. (55)
industrial
programs
on
innovations in
demands
needs
mother
the
is
concluded
change
influence
important
or market stimulated. There's an
is need
innovation. A comprehensive review of over 2000 case studies
technological
primary
necessity
that
"demand -pull"
of
innovation
have
we
should strive to find out what consumer or
and want, or seek research subjects and research
industries
which
relate
closely to mass production
some good solutions for these subjects, surely they
can be put into mass production.
-60-
now
China
development
economy
takes
progress
should
technology
production
be
one
the
on
hand,
the
technology should integrate with development of
of science and
and
policy:
following
the
society;
top priority of science and
the
of
the
to
improve the development of economy; research on
technology
diffusion
technology
and
industry
in
and
agricultural
areas should be strengthened; and on the other hand, economic
construction
must
current
China's
depend
on
science
and
science
and
technology.
The basic aim of
technology modernization program
is
to solve
key problems which act as bottlenecks to industrial, agricultural, and
the
modernization. This policy adapts China's current situation. Under
defence
the
guidance of this policy new, market-type systems have been introduced.
Two
important
units
and
individual
institute
case,
factories
on
and,
of
a
contract system between research
the development of
a
consulting system between
case, factories may now solicit assistance from
basis
fee
a
nation-wide
a
emergence
scientists and various enterprises or government organizations.
former
the
In
the
are
for
a
research
specified period of time. In the latter
a
consultancy
network
administered
Association for Science and Technology was formed
in
by
the
China
January 1983.
4.2.2. Technology-push innovation.
When
tell
science
marketing
company
and
develop to
technology
a
certain extent,
F &
D can
that it has developed a new technology that will allow the
to create a new type of product or open a new application. This
is
technology-push innovation.
Technology-push
side.
a
new
The
innovation
is
generally
initiated
from the supply-
technology supplier in such situations innovates and then seeks
market application. The motivation for technological development is
-61-
based
on market potential
and subsequent technology procurement pull.
Some
points here should be emphasized:
bring
should
We
(1)
achievements
current
the
of
science
and
technology into full play.
Usually, the achievements of science and technology are created by
two
firms and are used in some areas first. We should bring these
achievements
into full play and emphasize achievement-sharing in the whole
or
one
(including
country
Competition
vertical
inevitable
and
achievement-sharing.
applications
types
research
from
In
production;
to
be
preferable
to
2)
1)
from
from coastal regions to interior regions; 3)
and A)
from overseas to domestic users.
"research-production-unions" and "brain trusts" have been
areas,
some
times
at
technology).
China now will be encouraged:
in
to civilian sectors;
defence
may
of
and spread their scope of application. Four
transfer"
"technology
of
imitation
transfers
During this period of time, we can also find some new
achievements
of
horizontal
and
set up to facilitate technology-push innovation.
We must launch research on forecasting demand.
(2)
kind
Any
innovation
of
that
into
accepted
demand,
To
predict
research
activity.
particular
knowledge
social
this
forecasting
form.
We should
future market trends?
for a specific product or service, we must launch
demand
and fully use its results to guide
If the marketing department
tells
R&D
R&D
that it should develop
a
type of product, it should be basing its recommendations on its
what consumers want, what the competition is doing, and what
of
trends
case,
to know tomorrow's need. What are
demand
the
on
useful
in
by the actual market. We want not only to knov. today's
also
but
put
innovation is never really achieved until it is introduced
recognize
and
be
roust
call
once
for
this
the
development of
particular
type
-62-
of
a
new product, and so on. In
innovation succeeds, it will
likely be put into mass production sooner.
We should have good supplier's representatives.
(3)
There
which
To
support
need can at first be perceived by innovators
their
to
as
were
necessities
almost
education
products
many
statement,
this
considered
in
a
not so apparent to the consumer until the product is introduced.
is
market that are now
the
on
consumer
with
along
introduced
need. For example, people did not know, at first,
could have an oven that allowed them to cook
they
that
when
times
are
a
variety of foods
brief period of time. But now knowing microwave ovens are available,
a
enjoy
they
effort
by
use them. Creating
to
company to persuade the customer of
the
before
benefits
product
opportunity
the
company
the
satisfies
need.
the
a
need involves extra
need for the product
communicate to these customers how the
can
It
a
is
much easier to satisfy existing needs
than to persuade people to want something they don't already want.
In
other cases, awareness of
through
vendor's
a
supplier
or
representatives
suppliers'
need can be communicated by a customer
a
v
representative.
s
In
many industries,
technical qualifications and
have
provide
car.
advice to customers. Then innovation is gradually achieved.
(4)
The risk for a technological developer is less in the demand-pull
situation
(because
West
on
originated
failures
began
may
potential
strategy
leadership
be
be
(because
from
with
much
to the market)
of only an anticipation of
demand-pull
greater
instrumental
positions
factors,
technology-push. (6 ,56)
analysis
market
can
response
committed
than in the
a
German innovations, for example, found that 70
successes
returns
a
situation
technology-push
Research
of
in
the
in
However,
technology-push
correct.
is
whereas
A
80
the
%
market.)
%
of the
of
the
prospective
situation if the
technologically
innovative
establishing market identification and
which other firms may subsequently find difficult or
-63-
.
impossible to overcome (3
.
,p .266)
4.2.3. Users as Innovators
Pioneering
Von
studies
Hippel (48,57-62)
proposed
Many
both
that
of
analyzed a series of possible patterns for
and concluded that many users often become innovators. Also
strategies
their
has
He
.
innovations
of users as innovations have been done by Eric A.
technical
studies
the
listed
marketing organizations should adjust
and
to capitalize on
in
he.
the user domination of much innovation.
Table
9
demonstrate
significant
the
contributions of the user to innovation.
some
In
(1)
subassembly
manufacturing
created
than
equipment,
innovation
(innovation
supplier)
a
percentage of innovations
heavy
a
the users of the products and processes.
by
user-dominated
rather
as Table 9 shown, especially in pultrusion
machinery, scientific instruments, semiconductor and electronic
processing
were
industries,
far
is
In
these areas,
inspired and created by
t
customer
more prevalent than we have previously
assumed
(2)
user
The
ways,
such
as
makes
what
they
innovations
in
studied
Von
by
implemented
diffused
copies
it
user becomes the designer in semiconductors, the user
the
need
scientific
in
instruments,
the
user
dominates
machinery, etc. In most "user as innovator" cases
process
Hippel,
a
user
came
up
with the successful solution,
his
or
her own organization for personal use,
information
on
the
first
detailed
available
innovator can make important contributions in some
as
in
of the invention, and made
value
to others on request. Later,
a
manufacturer produced the
innovation in large volume and entered the market.
(3)
industries.
User-dominated
In
innovation
is
not
equally
common
in
all
some industries, manufacturers develop products responsive
-64-
Table
9.
Data Regarding the Role of High Need and Lead Users
in Product Development
Nature of Innovations and
Sample Selection Criteria
Studv
Knight
(22)
Innovative Product Developed By
User a
Mfe. a
Computer innovations 1944-62:
- systems reaching new performance
high
43
with radical structural
innovations (level I)
- systems
Enos
Major petroleum processing
innovations
(23)
Freeman (24)
-
*
Berger
(25)
Boyden (26)
•Lionetta
von Hippel
(27)
(28)
Chemical processes and process
equipment available for license,
1967
810
70%
6
0%
Chemical additives for plastics: All
plasticizers and UV stabilizers
developed post World War II for use
16
with 4 major polymers
0%
All pultrusion processing machinery
innovations first introduced commercially 1940- '6 which offered users a
major increment in "unctional
13
utility
85%
All engineering polymers developed
in U.S. after 1955 with >10mm pounds
produced in 1975
Scientific instrument innovations:
- first of type (eg. first NMR)
- major functional improvements
- minor functional improvements
*
von Hippel
(29)
VanderWerf
(30)
Semiconductor and electronic
subassembly manufacturing equipment;
- first of type used in commercial
production
- major functional improvements
- minor functional improvements
Wirestripping and connector
attachment equipment
20
11%
.
customers
to
responding
conventional
this
relationship
of
manufacturer
needs by acting as innovator and product developer
user
to
applicable.
strongly
of
needs,
Table
also shows that all innovations in
9
a
is
sample
engineering polymers and new additives for plastics were developed
new
by manufacturers of those products, revealing no contributions of users.
A. 3.
Internal and External Communication
Where
do
innate
they
the
in
communication
from
communication
is
the
innovation,
to
a
different
types
information
They
must
in
also
No. They come from social practice. They come
mind?
is
essence
great
of
order
have
kinds
different
between
processing
information
the
ideas come from? Do they drop from the skies? No. Are
good
process
the
any
of
extent,
is
gaining
of
scientific
the
people.
of
best
In
fact,
information,
activity.
results
and
A successful
of dealing with
information.
Scientists or engineers must first have
select
or decide their subjects (or programs).
to
other informat ion in order to understand and deepen
problems confronting them. They must have still additional information
either
from
external
sources
memory
or
solutions to their problems. Then they may get
A. 3.1.
order
in
a
to develop possible
successful innovation.
The Channels of Communication
Three
broad
measurement
technical,
personal
etc.),
and
contact
and
research,
Contacts
is
classes
made
of
of
information
channels
are considered and
a
time spent with literature (books, professional,
other publicly accessible written material), time spent in
outside
personal
personal
the
contact
lab
(vendors, customers, external sources,
within
experience,
and
the
lab
(technical staff, company
experimentation,
etc .(32 ,p.28)
)
are especially useful if originated by the persons concerned (the
-66-
with
contacts
inside
both
colleagues
done
colleagues
just
outside
and
promote
to
that
areas
are
aware
more
beneficial
frequent
than
just a few in the other. So, anything that can
forms of contact would be good. One important
these
of
,p.53)concluded that frequent
own group seemed better than having many
one's
done
be
can
seemed
9
colleagues. Similarly, having many colleagues
few
a
in one place and
thing
this
many
with
contacts
be
colleagues). Pelz and AndrewsO
his
or
man
to make sure that people working
is
in related
each other's activities, interests, and problems. If
condition is met, your professionals can themselves seek the contacts
which promise to be useful.
key
The
communicators
and
experimental
groups, especially in the latter, are three different types of
development
gatekeepers:
— relates well
marketing — senses and
technical
1)
and
technology;
2)
to
customers,
competitors,
affecting
research
applied
in
the
marketplace;
communicates information relating
environmental
and
and
to the advancing world of science
3)
regulatory
and
manufacturing
—bridges
changes
the technical
work with the special needs and conditions of the production organization.
A. 3. 2. The Necessity of
A
'or
Communication
number of recent studies show that communication with inside
large
outside organizational colleagues is strongly related to scientific and
technological
performance
Flow
Technology
the
system
of
networks
the
communications
19,32 ,63) Prof. Allen(32)
described
the
in his book, Managin g
more details about the communication
importance
of
communication
within
the
among organizations; structuring communication
(including the influence of formal and informal organization, and
influence
complex
,
technology;
in
laboratory;
.(
of
activity.
architecture
In
most
on
cases,
communication). P
the
-67-
development
&
of
D today is a very
new products or
processes
requires
several
years,
complex
F
have
even
is
when the diverse talents, experience, and technological
rare
necessary
entirely
within
project.
Few,
ideas
a
solutions
to
the
plays
demonstrates
innovation
from
outside
outside
innovation also requires multiple
multiple technological problems which arise
that key technical answers to major problems come
organization
the
sources
the
successful
where
the
work is underway. Several
point out that for innovations eventually developed within
also
studies
firm,
of
engineers assigned directly to the
role in problem-solving. Much research on industrial
significant
a
project can be found
inside or cutside the organization communicat ion
Both
project.
D
&
then;.
of
a
of
F
therefore require some consulting support from people
development
for
during
group
an
project teams can be entirely self-sufficient. Most
if any,
who are not assigned to
The
accomplish
to
small
the
D projects will
&
teams to deal with
the information needed to accomplish a project successfully.
of
all
project
problems have developed. Even such teams, however, seldom
D
&
interdisciplinary
therefore,
understanding
F
wide diversity of talents and knowledge. It is seldom
any single individual has all of the requisite knowledge. In the past
that
It
a
origins
on
of
technical ideas divide between inside and
initial
about
a
2:3 basis. (6, 64) These studies also show that
a
personal
experiences (ideas that were used previously for similar proMems
and
recalled
are
information
whereas
directly
memory) and contacts are key sources of
from
the scientific
literature sometimes yields relatively
little productivity.
Myers
and
innovations
personal
in
Marquis(6 ,65)
studied
the sources of information for 567
five industrial fields with 120 firms. They indicated that
contacts generated
a
total of 25 % of the solutions, and personal
training and experience produced an additional 48
-6 8-
%
.
4.3.3. The Possibility of Communication
very
A
interesting phenomenon is that
series of innovations do not
a
from established companies in established industries due to strong
emanate
Synthetic
pressures.
competitive
rather
industry
transportation
development
industries
the
to
photography
Instant
Xeroxing
industry.
was
other
communication
not
industries.
manufacturing
outside the conventional photographic
product innovated by the office equipment
a
The aforementioned illustrations can be supplemented by
industry .(3 , p. 256)
numerous
electrical
and
developed
was
ground
High-speed
extended from the automobile and railroad
has
aerospace
developed by the chemical
industry.
textile
the
than
were
fibers
different
between
examples
These
examples.
organizations.
show
the
possibility
of
Even though they work in
different fields, they may also have some common language.
But
universal
at
among
Sloan
the
will
research
colleagues
language
in
and
in
effect
This
goals
similar
Management
from
work
in
MIT. (32) Those engaged in basic
professional
extensive
commnication
with
elsewhere because of having roughly the same
goals. In fact, scientists can contribute to each
same
Those
engaged
case,
this
the
in
development gain less fron such
gregarious
"gate-keeper"
—a
research
same
the
field
in other
organizations but can interpret
work in the context of his own organization's assignments and needs.
Communication
no
science and technology is not
who is also unusual as an active communicator, not only reaches out
workers
their
of
benefit
In
in
D workers. This is the result from a number of studies
School
the
communication.
to
F &
communication
for
effectiveness.
other's
worker
need
the
j
may
on
with
colleagues
outside the organization at times may have
the performance of engineers in technical service projects.
be because research work is so closely coupled to organizational
that
outside
inputs
are
-69-
unnecessary.
Figure
8
shows
the
relationships
between
project performance and communications in different
kinds of programs (66)
.
:"
.'~.
"'
•
^'--
f.'-veS-
*.
:;
4.5
'--
t^'(~£„ Technical
~service
^^ri^fiw
•'
*
'.'"workers
Development ^"-"',V •"-;,'/ 't.
' workers ,v ?;"-'- 7 .'--"-.—T -
i**/i
-V'
4.0
'.-
'
;
"'•
3.5
3.0
.
0.25
—
0.75
0.50
1.00
Communications per person per week
Fig. 8. The Relationships between Project Performance
and Communication in Different Kinds of Program
Source: (66)
4.4. Government Role
Government
play
can
important
role in stimulating or enhancing
government's effect on science and technology (government
innovation
by
program);
2)
regulation
(legislating
1)
an
government's
the
stability
regulatory
environment);
(political
measures);
and
4)
its
3)
policies on
science and technology (see 4.1.2.).
Government's
public
orbiting
United
programs.
of
an
States;
effects
For
may
example,
embody
three aspects:
placing of
the
a
1)
organizing large
man on the moon and the
earth resources satellite are specific accomplishments in
2)
engaging
in
intensified
-70-
planning
for
innovative
For example, the Chinese government has given prominence to the
solutions.
and
situation.
These
lasers,
calls
D,
physics,
all forces and achieving remarkable successes so
some
to
programs.
specific
barrier.
capital
politically
A
especially
instrumental
in
regulations
developmental
example,
U.S.
the
R&D.
regulations
in
creativeness
of
can also serve as an innovation stimulant
government
unstable
areas.
high-risk
in
dampen
can
rate
tax
costs
The
incentive.
discourage venture
can
Government
can be
regulations
and
Chinese
order
innovation enthusiasm. A good example is the
in
England
which,
in
concert
the high risks of innovation, acts as
government
to
enterprises
has
set
encourage
the
up
four
high
with
kinds
negative
a
reward
of
initiative
enthusiasm,
Reward
System
of
and
and all staff members working in science and
for innovation: a) The Reward System of Invention-Creation
technology
reward
For
encouraging or discouraging innovation. Legal restrictions
high
extremely
Science;
environment
political
The
The
a
has given direct or indirect financial support to space-defence
programs for semiconductor and computer
and
genetic engineering. The plan
and
high-speed development of science and technology as
the
especially
Government
or
bearing on the overall
and of the entire national economy; 3) giving financial support to R
whole
&
energy
concentrating
promote
to
a
are agriculture, energy, materials, electronic computer,
high
space,
for
technological spheres, important new
and
pacesetting disciplines that have
techniques
as
scientific
comprehensive
eight
;
b)
Heavy Achievement; c) The Reward System of Natural
and d) The Reward System of Rationalization Proposal. Since these
were
systems
promulgated
in
China,
the
number
of
heavy
achievements, innovations, and suggestions has increased annually.
The
advanced
role
of
ceramics
the
Japanese
government
industries is also
-71-
a
in
promoting
its
domestic
good example. (67) Advanced ceramic
materials
are
significant
from
potential
traditional
special
these
used
relatively
a
by
properties,
in
specialized
their
properties. Because of
ceramic materials are expected to be
advanced
number of high-performance commercial applications
a
heat-and
from
impact. They are differentiated
for future economic
ceramics
increasingly
ranging
new class of high-performance materials with
wear-resistant
parts
electronic
to
and optical
devices.
Japan
industry
will
national
goals:
advanced
ceramics would enable Japan to substitute indigenous for imported
make
materials
raw
1)
electronic
natural
a
resource
nation, the use of
poor
imported
ceramics
petroleum;
another
adds
3)
advantage
Becoming
the
Superiority
their
to
world
in
already
leader
in
advanced
strong
advanced
result in sizable new exports of the
directly
will
2)
themselves and indirectly add to the value of automotive, machine
products
have
Being
industries;
engineering
tool,
major contribution to some of their most important
a
on
ceramics
electronics
the development of an advanced ceramics
that
would also contribute to energy conservation, lowering
and
dependence
its
perhaps aerospace exports. So all previous Japanese governments
and
given
advanced
a
vast amount of financial support to E
ceramic
production)
and
industry.
Both
the
5
"Sunshine"
for the large-scale
D
(alternative
energy
(energy conservation) Projects have involved
"Moonlight"
materials for high-temperature conditions including advanced ceramics.
new
This
why
is
ceramics,
the
anticipates
Japan
accounting
electronic
sustained
has
itself
as a world
leader in advanced
about half of world production, and dominanting
for
components
business,
particularly in integrated circuits
packaging.
5.
Some Suggestions
We
have
discussed
above
both
-72-
major
internal and external factors
innovation. We hold that the most important problem does not lie
affecting
understanding
in
explain
theory
activity
about
it,
the real world.
significance. Following
is of no
innovation
stimulating
about
suggestions
some
If we have a correct
pigeonhole it and do not put it into
then that theory, however good,
practice,
are
change
and
prate
merely
but
thus being able to
but in applying the knowledge of these laws actively to guide
it,
practical
our
of the objective world and
laws
the
on
the basis of the
above analysis.
5.1
•
Correct Selection of Central Persons
correct selection of central persons is of fundamental importance
The
to
the success or failure of any unit. The saying "it all depends on human
is quite
efforts"
true. Leaders at all levels must give it full attention.
Some significant points here are
(1)
"Central persons" does not mean only one or two people
As
earlier indicated, successful innovation
several
to
:
stages
Each
innovation
presents
different
types
scientists
and
of
several
We
people.
tasks
different
qualitatively
to
be
required for effective technical
tasks
challenges
unique
must
and
should
controllers
should
gatekeepers,
sponsors,
quality
for
complex process with
not
only
with
filled
be
have
some
very
creative
engineers as central persons, but also some entrepreneurs,
managers,
occupations
the
of
project
contingent
some
are
there
fulfilled.
a
generation of the idea to useful form. Corresponding
from
stage,
each
is
must
consist
the
whole
treated
be
of
as central persons.
qualified
chain
technical problem-solvers, and
personnel
in
In
all
short, this
trades
and
of effective technical innovation. The
situation here is something like the theatrical troupe.
Many
technical organizations have failed to be innovative because one
-73-
.
or
more
of
course,
these
quite different critical functions has been absent. Of
type
of personnel needs to be recruited, managed, supported
each
offered
differently,
different
sets
incentives, and supervised with
of
different types of measures and controls.
Train Central Persons More Actively
(2)
Where
is
training and upbringing of people within the organization who are
from
working
Sloan
are the technical central persons to come from? One main source
different
at
School of Management at MIT provides some programs for that, such as
Management
the
positions and have some successful experiences. The
two-week
Special
intended
for
requiring
Technology Program, the Sloan Fellows Program, and the
of
Summer
Program. The Management of Technology Progran
experienced
increasing
engineers
scientists
on
a
career
path
responsibility for managing technical activities and
technology-based
organizations.
understanding
the
of
and
is
The
two-week
Program
provides
an
underlying innovation process, and seeks to improve
the
managerial skills and perspectives of course participants. Practice
the
past years have amply demonstrated that these programs offer effective
After short training supplements the original successful experiences
help.
of
in
technical
people,
a
lot of these persons have become central in their
enterprises
The
recent
only
need
survey
29.3
Still
been
leading
did
not
key
120
cent
Among
fewer
made
of
per
education.
central persons in China now is urgent and pressing. A
for
of
then,
large and medium sized enterprises shows that
their
directors and managers have had
a
college
only 0.8 per cent majored in economics and finance.
have attended management schools. Although great efforts have
in
recent years to promote young, middle-aged intellectuals to
positions,
the majority of them were engineers or technicians who
have management training or experience
-74-
.(
53) We know with pleasure
.
that
Central
the
plans
measures
to
quickly
train large numbers of
can successfully organize and direct enterprise
who
(managers)
directors
the Chinese Communist Party has drawn up
of
effective
taken
and
Committee
engineers who can strengthen technical
chief
operations,
production
and
management
and promote technological progress, chief economic managers who
can
budgeting
create
managers
marketing,
have
"chiefs"
accountants,
and
revenue. This is how to
technical
talents
for
Party Central Committee decision says
be trained and each enterprise should appoint
accounting. (69)
In
the past,
the role of these three
beer given sufficient importance. Most of the nation's
not
and
of
are to be in charge of technology, economic planning
and
have
enterprises
sources
managerial
Another
should
who
"chiefs",
three
and
.
more
that
of
contingent
construction (68)
economic
new
exploit
and
mighty
a
better economic results, and chief
for
who can strictly uphold financial and economic disciplines, do
accountants
careful
operations
business
improve
a
but
engineers,
chief
only
20
per
cent
have
chief
mere 10 per cent have economic planning and marketing
chiefs
Send studends or scholars to developed countries
(3)
Practical
to
persons.
The
during
have
already
more
than
before
1979
number
sent
years shows that sending students or
the
government has sent about 33000 students (including
Chinese
financially
countries
over
developed countries is an effective way for improving central
scholars
7000
experience
students)
self-supporting
past
the
returned
twice
the
— the
year
abroad
six
after
number
of
will
be
study
in
more
than 6C
years. Fourteen thousand (14000) of them
home
China
to
completing their courses. (70) This
students
is
sent abroad over the 28 years
set about opening to the outside world. The
increased
1984.
-75-
to 4000
in
1985 from the 3000 in
)
.
There
has been a sharp increase
scholars
and
abroad.
sent
ir.
the number of postgraduate students
Together,
they constitute 78 per cent of the
number of Chinese studying abroad. In 1978, they made up just 10 per
total
cent
In
Tapping
sending students abroad is one way to import "intelligence."
fact,
intelligence
the
advanced
techniques
people
of
equipment.
and
more
is
We
important
than importing
are sure, most of these students
will become central persons in different fields in the near future.
The
advantage
abroad
has
needed
in
been
experienced
sending
of
also
for short-term study
experts
their ability to absorb useful knowledge
improved
their professions and to apply it to their work after returning
home
5.2. Timely Establishment of an Industrial Liaison Program
The
organized
management
imaginative
innovation
is,
in
there
the
alone,
results
to
expenditure
Yet
management
process
is
an
in
requires
linkages
the
of
among
the effective
not onlj
the
J
E)
,
but also
stages of the whole
D, engineering, production, and marketing). That
&
interface between each stage of innovation. Historically,
States,
many
the
(F
process"
development, and engineering (F D
research,
of
United
and
"innovation
times
market
billion
are spent annually on R B
&
F
that amount is devoted to the transfer of R D
&
E
into the production process. European R D
&
E
over
or
government
$80
and
industry are comparable in magnitude (71
.
many managers of these activities have usually advanced as
a
result of
technical expertise alone and often lack management knowledge.
We
should
make
United
States
has
strengthen
organizations
set
relationships
up
the
operate
Industrial
nore
effectively. MIT
Liaison
Program
in
in
the
order to
between the university and industry. The progran
-76-
offers
to
set of services that brings KIT technical and managerial advances
a
member
visits,
a
companies
systematically
symposium
series,
a
continually
and
through
on-campus
program of short courses and, through an
Over
collection.
300
member
companies
and
extensive
publications
government
organizations have access to ongoing research at KIT throughout
the
year. This relationship has enabled KIT to make major contributions to
development
industrial
it
is
amply
continents
four
robust growth since 1948 to its present membership
program's
The
consider
organizations
in
the U.S. and other countries over the years, and
of critical importance to innovation and technology transfer in the
future.
on
in
demonstrates
its
to
members.
Some
their most effective single investment
membership
science and technology. This is
research,
value
a
successful experience that
should be initated.
China
Similarly,
technological
trade
practice
This
construction
and
personnel .(72)
People
contracts,
services,
or
bidding
production
241
large
scientific
different
D
and
for
import
people,
swap
and
new
a
effective
and
way
to
combine
The method is to hold technical
development.
scientific
which
at
innovators
individual
problems.
economic
and
fairs
found
has
institutes,
colleges,
factories, and
research results and join in tackling complex
has helped integrate research work with economic
has
can
encouraged
come
the
to such
initiative
of
scientific
fairs to seek or offer technical
demonstrations, information and new products. Asking
solutions
to
difficult problems, recruitment of skilled
of technology and formation of firms combining technology,
trade
technical
can also be done at such fairs. Chir.a has sponsored
trade
fairs since 1980. In addition, more than 1000
and
technological and exchange centres have been established ir
parts
of China in order to strengthen relationships between R
5
industry. The consulting service centre of the Shanghai Science and
-77-
Technology
Association
Municipal
Shanghai
institutes
Government.
in 1983
Members
of
associations of natural science
or
associations
established
was
of
science
technology
and
in
with the approval of the
the
in
centre
include
108
the city of Shanghai and
12 districts and
10 outlying
counties .(73)
5.3. Conscientious Arrangement of Three Kinds of Research
According
&
to the
D can be divided
(1)
measurement of scientific and technical activities,
F
into three categories:
Basic Research
Basic
Research
primarily
to
phenomena
and
theoretical
is
acquire
new
knowledge
experimental
or
of
the
undertaken
work
underlying
foundations of
observable facts, without any particular application or use
in view.
(2) Applied Research
Applied
acquire
Research is also original investigation undertaken in order to
knowledge.
new
It
is,
directed
however,
primarily
towards
a
specific practical aim or objective.
(3)
Experimental Development
Experimental
knowledge
gained
directed
new
Development
research
from
systematic
and/or
work,
practical
drawing
on
experience,
existing
that
is
new materials, products and devices, to installing
producing
to
is
systems and services, and to improving substantially those
processes,
already produced or installed.
All
systematic
the
these
of
basis
knowledge
knowledge
to
of
three categories comprise creative work undertaken on
in
order
man,
devise
to increase the stock of knowledge,
a
including
culture and society, and the use of this stock of
new applications. They supplement or complement each
-7 8-
may be done in order of importance and urgency, but we should
They
other.
do
never
thing
one
research
innovations
the
successful
industrial
draw
role
development
pool
innovations
different
research
which
supporting
E
&
areas.
commercial
In
Also,
the
D in basic
continuous
analyzed
colleagues(74)
flow
of
new
British
was
the
of
seventy-eight
1965 in 22
since
"successes"
cent
per
87
commerc ilization
to
company.
his
become
a
maintain
to
available to all.
is
and
had
industrial
leading
reporting
make
Fernelius
C.
be
must
that
then
follows
It
there
action
knowledge into this pool which
W.
utilize that knowledge to assist in the
and
innovations.
their
of
innovative
vigorous
we do not
innovation. The most widely held view is that there
the
from
freely
that
to
of fundamental knowledge available to all innovators. They
pool
a
important
is
it
greatly
of basic research. It can also make contributions to
undervalue
exists
However,
industries.
and
contribute
can
development
experimental
and
another. Most people know that applied
neglect
and
cases, the basic
financed and performed by the
Government has focused heavily on
fields. This orientation has led the British to
major contributions to science and technology
— in
particular to areas
of "big science" such as defence, nuclear energy, and space. (75)
Basic
the
State
Institute
for
also
Science
and
Technology
of
was
government
a
has
Ceramics,
innovation
material
contributed to innovation in China. In 1982
research
for
discoverd
still
competitive
a
Commission
Chinese Academy of Sciences,
new
as
a
to
the Shanghai
first class reward
type of inorganic non-metallic material. This
a
result
of
basic
research.
The
Chinese
supports basic research and major scientific projects on
basis. Institutes engaged in this type of research will now
have to compete for money from national
In
awarded
conclusion,
it
is
f oundat
ions . (52)
important that these three kinds of research be
-7
9-
arranged.
conscientiously
research
funds
annual
and
experimental
10,
we
(here
ratio
the
ratio
the
1:2:6
around
is
according
calculated
is
the period of 1974-1984. From Table
during
development
that
see
Table 10 shows respectively the
United States for basic research, applied research,
the
in
(different
countries
different
situations.
different
have
the ratio of basic research to applied
for
development,
exper iniental
and
also)
times
As
for the years 1983-1984
also calculable
to funds, but
according to the number of projects or people).
Table 10. The Annual Funds in United States for Basic Research,
Applied Research and Experimental Development (1974-84)
J Bfflont.
am**
Basic research
Applied research
Development
» Eswnsisd.
1BB4*
1B83*
1BB2
1BB1
1980
$11.9
21.4
$10.6
$
S 9.2
16.9
45.8
S 8.1
14.1
63.7.
Scvtr ^lonnj
9.9
18 4
52.0
19.9
57.2
1B7S
$
40.5
1975
1077
1976
1B75
1974
ie;T--E«
7.3
12.4
$ 6.4
10.8
$ £.5
S 5.0
9.0
$ 4.6
$ 4.2
12%
9.7
7.9
7.2
8
35.3
30.9
27.5
25.0
22.7
21.4
11
1B7i-84
11%
12
12
Science F cxnOaton
Annual eharx>»
t BUlwm. coranrrt (1B72)
1BB4*
1BSS*
Basic research
Appl'ed research
$ £.2
S 4.9
9.5
9.2
2S.2
25.5
Development
1952
$
4.7
S.9
25.1
1B81
19B0
167B
1978
1B77
197S
1975
S 4.7
$ 4.5
$ 4,4
$ 4.3
$ 3.9
S 3.8
8.7
7.9
7.6
7.2
6.9
6.8
S 3.7
6.3
22.5
22.7
21.6
20.5
19.5
18.9
18.1
1B74
S
19ST-P4
1B74-S4
3.8
7%
3%
6.3
3
IE. 7
7
4
4
Eil#T«*l Sourc«: National Science rc*jndabon
Source:
(78)
5.4. Strict Separation of Responsibilities Among Different People
successful experience of many developed countries shows that every
The
unit
must
specify
in
explicit terms the requirements for each work post
and
the
duties
of
each
responsibility
staff
members
creativeness
interests
of
of
and
The
.
combination
systems
so
bring
basic
staff
state,
and
must
establish
various
as to raise the sense of responsibility of all
into full play their initiative, enthusiasm and
principles
responsibility,
the
member
the
of
this responsibility system are
authority,
collectives
-80-
and benefit;
and
a
the unity of the
the individuals;
and
the
linking
income
the
of
all staff members with their job performance.
of
This issue can be discussed for several levels.
Separate Government from any Enterprise Functions
(1)
and
business
must
responsibility
departments
different
local governments took
and
which were not really theirs and at the
regions
or
the
and
practice of endless
increased the difficulties in running enterprises. If this state
wrangles,
were
affairs
enthusiasm
the
of
the
universities,
and competition between units could not develop.
association
cooperation,
national
possess.
changed,
not
enterprises, and other grass-roots units could not be aroused,
institutes,
The
matters
many
central
the
and
not do well what they ought to do. This, plus the barriers
did
time
between
of
for
from those of the
or any enterprise, which in fact became appendages
organs,
administrative
same
respectfully and conscientiously. The functions of
institute,
university,
an effective method in developed countries. We
for a long time were not separated
China
in
is
them
from
learn
government
of
enterprise
university, scientific research institute
from
government
Separating
would
economy
this
In
we
case,
bereft of much of the vitality
be
want
it
should
produce more innovations, which is
to
easier said than done.
there
So,
principle
of
order
whole.
a
pressing
to
We
end
reform in line with the
conduct
to
administration
invigorate
must
need
the functions of government and
separating
streamlining
enterprise,
in
is
the
the
and
enterprises
longstanding
instituting decentralization
and
the national economy as a
practice of leading organs making
enterprises
and units completely dependent on them,
enterprises
and
bureaucratic
vague
other
maladies
grass-roots
as
units.
organizational
the functions of
Also,
instead of serving the
we must eliminate sucr>
overlapping,
overstaf f ing
,
and
delimitation of functions. The leading organs at various levels will
-81-
thus
the
be
able
orient their work towards promoting production, serving
to
enterprises
other
and
grass-roots units, and helping build
a
strong
and prosperous country and bring prosperity and happiness to the people.
Separate Central Persons from Common Faculty Functions
(2)
Different
central
persons)
separate
are
central
charge
account
into
different
task
and
work
in
over-all
of
whole
the
tasks
A
leader".
different
have
kinds
five
(all
of staff have their own
functions and responsibilities. We must
responsibilities from each other. Usually, central persons
their
in
persons
good
situation
their
in
responsibility in their groups and must take
central
proper
around
order
their
be
and
should keep
person
a
tasks.
They
must put
good at being
a
"squad
firm grasp on his central
the same time, around the central task, he should unfold the
at
other aspects, and rely on his "squad members" and enable them to
play their parts to the full.
Both
central
persons
common
and
university
faculty have their own
tasks and responsibilities, which never replace each other.
Separate Faculty from Supported Staff Functions
(3)
Many
countries
system,
in
person,
for
which
a
world
the
in
secretary
have
works
secretarial support
established
for
director, or for
a
a
central
professor, an engineer, and so on. Practice over the years
a
has
proven that this is an effective way. A good secretary can deal with
lot
of
their
routine affairs for faculty. In this case, faculty can concentrate
energy
common
saying
leaves
to
advanced
and
doing
on
more
important
things which they can do best. A
goes, "with all its beauty the lotus needs the green of its
set
it
off."
It
is
quite
true.
We should learn from this
country experience. In China, many famous professors, scientists,
engineers
science
a
and
have
no
technology
support
staff.
organizations
-82-
Not
have
just
a
few core members of
reported to the higher level
care of many secretarial matters
take
must
leadership
group
themselves
during the whole process of scientific activity
to deciding and
programs,
instruments,
spend
they
that
energy
of
lot
a
dealing
to
with
routine affairs. Sometimes, they also
any
"Spring
determines
is
a
proverb in China:
the plan for the year; morning determines the plan for
day," that is, no more time can be wasted. They appeal many
practice
of
of
situation
soon and end
the
"eating
staff
relations
graduated
who
this
situation
of dealing with secretarial matters. In fact,
because
person
But
still
is
positions and many scientists can not effectively do research
engineer
the
should take full advantage of
Ve
skill.
and
that
tiir.es
Nany support people wculd like to be promoted to scientist
today.
serious
work
knowledge
professional
their
work.
scientists'
do
must
scientists
of
the people thus
among
contradictions
handling
much time, and time is very valuable. There
the
selecting
implementing solutions, to purchasing and moving
wasting
or
— from
this situation forever.
only
01
graduated
from
college
people to the countrj
in
— doing
elementary
from
fori
turn round
this
It
should be noted that the
or
middle school is not as
electrical
regarding
a
big pot" prevailing in the
to their units. We must
members
knowledgeable
qualified
same
the
from
this is
matters as the one who
electrical engineering. But, both are valuable
what they know how to do best.
5.5. Deliberate Seizing of Any Small Opportunity for Innovation
development
Technology
much
is
breakthrough-oriented
revolutionary
or
important
realize that the result of
to
together amounting to
technology,
achieving
of
a
technology
technological
development.
a
evolutionary
more
than
a
most
and
much
less
people imagine. It
is
series of evolutionary steps in
large improvement, is just as vital as
revolution. This is illustrated by the history
Innovations
-83-
of
the
steam
engine
and
the
computer are two good examples .(76)
The
popular notion of the development of the steam engine includes the
story
of
steam
came
later
invented
how
and
Watt realized the tremendous power of steam and
J.
steam
the
story
This
engine.
to do with
nothing
has
of
steam engine may be considered to start in about 1680 with
the
famous Dutch physicist C. Huygens, who was trying to develop an engine
the
based
not
on gunpowder (he would have liked to create a vacuum with it but did
succeed), through D. Papin's effort (an assistant of Huygens, who used
steam
T.
out,
Watt was in his mother's kitchen, the kettle boiled,
The true origin of the steam engine is much more interesting. The
reality.
hitory
James
create
to
Svery's
working
widely
effort
steam
Newcomen's
vacuum and built
a
engine
effort
used
plumber,
engine
steam
18th-century
1698, but had
in
(a
scientist, who made the first full-scale
England
(an
who
number of problems with it)
a
water out of coal mines
Smeaton's effort (who, around 1767, made
duty
—a
of
goodness
the
T.
in
early
blown-up version of the Papin engine),
a
T.
measure
,
up with the first reliable and
came
pumping
for
basically
England,
small-scale engine's model in 1690),
a
and
a
better engine and raised the
of engines
efficiency
— from
4
to
1775, J. Watt appeared and put it into the energy
7-12),
finally,
source
that
changed the world (of course, later in his life, steam engine
improvements
continued). So, the successful innovation of the steam engine
was
result
the
effect
small
of
around
of
a
series
evolutionary steps, and the cumulative
of
improvements.
The successful innovation of the computer
follows a similar pattern.
P.eal
events.
breakthroughs
The
more
however
do
common
course
occur;
of
they
are
technological
rare
and stunning
evolution is steady,
year-to-year improvement, and in the end are very much revolutionary.
At
times
breakthroughs,
such as the transistor, recombinant DNA, and
84-
the
bomb,
atomic
coming
understanding
DNA
Recombinant
—will
processing
knowledge
represented
prove
it
fundamentals
the
not
was
to a
it
possible.
successful
in
chemical
biology. Similarly, the
outgrowth
knowledge
of
led
make
to
molecular
of
that
new field of the accumulated
a
evolutionary
the
introduction
the
be
to
the result of long,
work
physics
introduction into
the
v.as
scientific
basic
solid-state
of
— should
be
about
bomb
atomic
undirected
mainly
and
sufficient
of the introduction of new knowledge
results
the
quite different areas. The transistor
from
patient,
are
about
explosives
of
the
but-
structure of the
nucleus into the field of weaponry.
developmental
themselves
innovation
makes
one
as
Co.) may be
start
to
many
vigour
of
full
Manufacturing
was
industries,
modern
In
a
take
enterprises
highways,
water
athletes
play
recorders,
(Minnesota
Mining
stain
and
slide
on,
u
good example. (77) The technical strategy of 3M
lot of new products such as tranparent
a
3M
vitality.
little businesses and more little businessmen.
more
of
their main strategies and thus make
of
and
philosophy
this
Nov?
3M
tape, reflective signs for
repellent chemicals for clothes, carpets that
tape,
magnetic
projectors,
sandpaper,
tape
bags for food, floor-polishing pads, copying machines,
cook-in
adhesives, electrical insulating tape, and hair-setting tape.
5.6. Gradual Increase of Scientific Research Funds
R&D
activity.
maintains
all
three
is
It may come
experience
The
in
funding
of
one
of
the
necessary conditions for scientific
from the government, industry, and/or other sources.
developed
countries
has
its lead as the largest source of R
&
indicated
that
industry
D money although expansion
sectors is slashed by inflation. Industry in the U.S. spends about
fourths
of
all
dollars
for F
-85-
&
D
,
with
a
big gain in spending in
—
.
1984
constant
in
dollar. (78)
according
to
1984,
increase
an
constitutes
&
D
the
the
since
1961-1983.
country:
U.S.S.P.
and
expenditures
reason
why
today; 2)
China
ratio
efforts
people
do
of
of
From
gross
to
%
average annual increase in R
R&D
9(a))
has increased steadily to near
and
has
to outdistance
managed
D as a percent of gross national product
&
R&D,
on
9(b)). Table 11 shovs national expenditures
(Figue
R
U.S.
of 1974-1984 and the biggest annual gain
(Figue
Table
11, we can clearly see that:
attention
much
pay
well above the 4
spending for
level
the
in
over the 1983 level. In constant dollars, this
°A
,
spending
Science Foundation, is about $97.0 billion in
period
the
1975
performance
for
%
6
U.S.
billion
inflation
to
over
1960s.
$100
of 11
gain of
a
spending
since
National
the
Total
national
to R & D funding
product
is
more
1)
(GNP) by
the U.S.
their ratio of
than
2
%.
P &
D
This is one
they have highly advanced science and technology in many areas
this ratic for other developed countries is between
currently
R
&
have
know
D
been
this
careful
has
no
systematic
expenditures
made
in
and
%
and 2 J.
materials about the
statistical
to gross national product. Although great
recent years to increase
ratio in China is still less than
budgeting
1
exploit
fund ing
-86-
new
1
R&D
funding, some
%. We should strive
sources of revenue for
R&D
i
!
U.S.
spending for R«D has increased steadily
S100 biliion level
to near the
-
Sources
o'
RSD
.
.
.
.
.
and has managed
Sources
funds. S billions, current
IOC
ol
R&D
to outdistance
1975
funds. S billions, constant (1972)
50
Total
Total
£0
40
BO
3j
40
Federal
government
2-0
.
inflation sinee
10
Universities
and other nonprofit
Institutions
<**
Table 11. National Expenditures for Performance of R & D as a
Percent of Gross National Product (GNP) by Country: 1961-1983
Table 11.
(Continued)
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Engineering News
,
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