Innovation Management
GM0401
6 september
Institute for Innovation and Entrepreneurship (IIE)
School of Business, Economics and Law
University of Gothenburg
Johan Brink
This course
• Formal: 9.15 to 12
– (Some lectures will be shorter)
• Informal: Read before! Q&A
and Discussions
– Mandatory: Case
presentations
• 3 Cases (30% final grade)
– Groups: write, presentations
and discussions
– 6 groups: A-F
• Exam (70%)
– Sat 30 oct, 9.00-14,
Viktoriagatan 30
The Structure of MTI
How is this course run?
The Book: The Management of
Technological Innovation; Dodgeson,
Gann and Salter
MTI is structured through three dimensions:
1 What are the overall context and forms for
the emergence of technological
innovation? (Chapters 1-3)
2 How MTI helps create, shape and deliver
innovation for firm (chapter 4-9).
Approaches, tools & techniques
Not Chapter 8, Innovation in Operations and
Processes
3 What are the future challenges of MTI? 5
future challenges (Chapters 10)
Additional required readings
•
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•
•
•
•
•
•
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Malerba, F. (2002), Sectoral systems of innovation and production, Research Policy
31 247–264
Olleros, F.-J. (1986) Emerging Industries and the Burnout of Pioneers, Journal of
Product innovation management, Vol.1, pp.5-18
Rosenbloom, R. and M. Cusumano, Technological pioneering and the competitive
advantage, California Management Review, 1987, Vol 29:4 51-76
Pavitt, K. (1984) Sectoral patterns of technical change: Towards a taxonomy and a
theory, Research Policy, 13:343-373
Courtney, H. et all. (1997) Strategy under uncertainty, Harvard Business Review,
Nov-Dec, 67-79
Powell, W et all. (1996) Interorganizational Collaboration and the Locus of Innovation:
Networks of Learning invBiotechnology, Administrative Science Quarterly, Vol. 41,
No. 1 (Mar), pp. 116-145
Tushman, M. and C. O´Reilly, (1996) Ambidextrous Organizations, California
Management Review, Vol 38:4, 8-30
Chesbrough, H and D. Teece, (1996), When Is Virtual Virtuous? Harvard Business
Review, Jan-Feb, 65-73
Maidique M. and Zirger (1985) The new product learning cycle, Research Policy, 14,
299-313
Teece, D (1986)Profiting from technological innovation:Implications for integration,
collaboration,licensing and public policy, Research Policy, 15:285-305
Lecture
Date
Time
Reading
Main Topic
1
Mon 6
Sep
9.15-12.00
----
How is this course run? What are the key
concepts?
2
Wed 8
Sep
9.15-12.00
Ch 1 and 2
Malerba (2002)
Defining key concepts and the conceptual
framework
Handout of Case 1
3
Mon 13
Sep
9.15-12.00
Ch 3: 54-60, 86-92
Olleros (1986) +
Rosenbloomm and
Cusumano(1987)
Technological innovation: What is it? Why does
it matter?
4
Wed 15
Sep
9.15-12.00
CASE 1
Student oral presentations of Case 1
5
Mon 20
Sep
9.15-12.00
Ch 3: 60-86
Pavitt (1984)
The innovation process
6
Wed 22
Sep
9.15-12.00
Ch 4:94-126
Courtney et al.(1997)
Innovation strategy: Firms, what they do and
why
Handout Case 2
7
Mon 27
Sep
9.15-12.00
Ch 5:133-146
Powell et al.(1996)
Network and new combinations
8
Wed 29
Sep
9.15-12.00
CASE 2
Student oral presentations of Case 2
9
Mon 4
Oct
9.15-12.00
Ch 6:160-186, 190-196,
Ch 7:220-223
Tushman O´Reilly (1996)
R&D Management
Lecture
Date
Time
Reading
Main Topic
10
Wed 6
Oct
9.15-12.00
Ch 5:147-159,
Ch 6:186-190
Chesbrough Teece (1996)
Collaborations
11
Mon 11
Oct
9.15-12.00
Ch 7:197-220, 224-234
Maidique M. and Zirger (1985)
The Management of Product and service
Innovation
12
Wed 13
Oct
9.15-12.00
Case 3
Student oral presentations of Case 3
13
Mon 18
Oct
9.15-12.00
Ch 9
Teece (1986)
Value from innovations
14
Wed 20
Oct
9.15-12.00
Ch 10
Future challenges and applying this
knowledge to companies &
Review
15
Mon 25
Oct
9.15-12.00
No lecture planned (Buffer)
16
Wed 27
Oct
9.15-12.00
No lecture planned (Buffer)
17
Sat 30
Oct
900.-14.00
Exam Viktoriagatan 30
What is Innovation?
...and what is invention?
What is Innovation?
The creation of a new idea and its
reduction to practice and it includes all
the activities required in the
commercialization of new technologies
(Freeman and Soete, 1997)
An 'innovation' is the implementation of a new
or significantly improved product (good or
service), or process, a new marketing method,
or a new organisational method in business
practices, workplace organisation or external
relations. OSLO manual OECD 1997
...and what is invention?
Something new, as a product of
imagination or a device or process
originated after experimentation.
Webster
Innovation in research
New to:
• New to the world
• New to the industry
• New to scientific community
• New to the market(place)
• New to the firm
• New to the customer
New what:
• New technology
• New product line
• New product benefits/features
• New product design
• New process
• New service
• New competition
• New customers
• New customer need
• New consumption patterns
• New uses
• New improvements/changes
• New development skills
• New marketing/sales/distribution skills
• New managerial skills
• New learning/experience/knowledge
• New quality/benefits
Innovation in research
New to:
• New to the world
• New to the industry
• New to scientific community
• New to the market(place)
• New to the firm
• New to the customer
OUTCOME &
PROCESS!
New what:
• New technology
• New product line
• New product benefits/features
• New product design
• New process
• New service
• New competition
• New customers
• New customer need
• New consumption patterns
• New uses
• New improvements/changes
• New development skills
• New marketing/sales/distribution skills
• New managerial skills
• New learning/experience/knowledge
• New quality/benefits
Definitions
TECHNOLOGY
?
MANAGEMENT
?
THE MANAGEMENT OF TECHNOLOGICAL INNOVATION
?
Definitions
TECHNOLOGY
A replicable artefact with practical application of knowledge in
developing and using it
MANAGEMENT
The strategic and practical approaches to the construction,
development and maintenance of the firm’s sustainable
competitiveness
THE MANAGEMENT OF TECHNOLOGICAL INNOVATION
The construction of adequate flexibility and efficiency needed for
conducting the firm’s scientific, technological, organiszational, financial,
and business activities in order to introduce and commercialize a new
product or process
BREAK!
Why study Innovation
Management?
• How has the mobilephone changed your
life?
• What would you do if it didn´t worked?
• How has it changed society?
Why study Innovation Management?
Business –
competitivnes
Relative:
Compared to
competitors
Absolute:
There must be a
market for what
the firm does
Changes!
Globalization
Bigger markets
Nisches
Shorter product life cycles
New products (<5 Years old) account
for 30% of the profits of US firms, and
in high-performing firms to account for
nearly half of sales and profits
(Cooper& Edgett, 2007).
Finance markets
Are more likely to be granted credit
and easy access to finance than noninnovators (Czarnitzki & Kraft 2004).
Have higher productivity and
productivity growth than noninnovators (Criscuolo, Martin & Haskel
2003).
???
...
Faster!
Percentage change in
employment, 1994-2000
Growth?
Share of new products in sales, 1994-1996
...and Wealth creation/destruction
Growth of employment and GDP!
High-technology industries grew more than
two-and-a-half times faster than
manufacturing industry as a whole
between 1980 and 2003 (NSB, 2006)
Trade in hi-technology goods (requiring high
level of R&D) doubled in real terms in the
OECD countries between 1994 and 2003
(OECD 2005)
High-technology industries in the USA
increased from 11% of domestic
production in 1980 to 13.5 % in 1990, and
to 34% in 2003 (NSB, 2006)
The return to R&D investment, both social
and private , are consistently assessed to
be high. Mansfield et. Al (1977) found that
the social returns from R&D investment to
be 56 %, and private returns to be 25%
Structural change
Prosperity & declines!
• Innovative countries and regions
have higher productivity and
income than the less innovative
ones (Fargerberg, 2005).
• Entire industries, such as the
Swiss watch industry, and
geography regions, such as
Silicon Valley in California, can
be invigorated or depressed by
technological change (Saxenian
1994; Utterback 1994).
...and new economic theories
New Growth Theory
Evolutionary economics
”Traditional Neoclasical
Economics” consider
technology as an
”exogenous” factor
GDP=F(Land, Capital,
Labour)
Wednesday 8 sep
• Read chapter 1-2
• Read Malerba, F. (2002), Sectoral
systems of innovation and production,
Research Policy 31 247–264
Thank You