Stevens Institute of Technology
Howe School of Technology Management
Syllabus
MGT 673
Global Innovation Management
Course Coordinator(s)
Associate Professor Thomas G. Lechler, PhD
tlechler@stevens.edu
Year: 2014
Course Description
This course focuses on the globalization paradigm and its effects on management of
innovation. It is an interdisciplinary course, which analyzes the different managerial
areas of strategy, organization, technology and market as integrated with the innovation
process in a global context. The underlying theories and models are explored to
understand how the innovation process is affected by local, national and global
influences; what cultural and organizational drivers are at work; and how to manage
commercialization of new products on a life-cycle basis, in a diverse and ever-changing
global market. Case studies will be used to support the theoretical constructs and
reinforce learning.
Prerequisites: MGT-671: Technology and Innovation Management.
Course Objectives
This course provides a strategic perspective of the challenges and advantages of
innovation outputs in multinational companies. In this course the students will learn:
1. The underlying theories and models on innovation, organizational structure, and
market penetration in a global setting;
2. How the innovation process is affected by local, national and global influences;
3. What cultural and organizational drivers are at work;
4. How to manage commercialization of new products on a life-cycle basis, in a
diverse and ever-changing market.
Additional learning objectives include the development of:
Communication Skills: students will improve and polish their oral communication skills
through the case analyses and team project presentations.
Technology Role in Business: Students learn how companies use technology to innovate
new products globally.
Analytic Problem-Solving: The course incorporates case study methodology which is
built on analytic problem solving.
Ethics: Students learn about the ethical issues involved with global innovation.
Team Skills: Students will work in teams on the majority of the course tasks such as case
analysis and the final project; an online survey instrument will be used to measure
individual contributions to team performance.
Global Awareness: Students learn how innovation is changing the world and where
culture plays a significant role.
Course Outcomes
After taking this course, students will be able to:
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Gain a strategic understanding of the knowledge economy and its role in the global
competition.
Conduct a strategic SWOT analysis to innovate a product globally.
Anticipate, adapt, and respond to global market needs to create innovative products.
Acquire knowledge to critically assess the strategic capabilities of an organization to
innovate globally.
Pedagogy
The course will employ lectures, case studies, class discussions, one exam and a
comprehensive team project. Students will critically evaluate and discuss the presented
business ideas and prepared cases. For the team project, student teams will develop a
comprehensive analysis of an international organization.
Required Text(s)
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
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Doz, Y., Santos J. and Williamson, P.2001: From Global to Metanational, Havard
Business School Press, Boston MA.
Lecture notes
Recent papers
Supporting Web Platform: http://webct.stevens.edu/
Required Readings
 Fallah, H. and Lechler T.G. (2003) Global Innovation Management in Wireless
Communications Industry, IAMOT conference proceedings.
 Engardio, P., Bernstein, A. and Kripalani, M. (2003) Is Your Job Next? In: Business
Week, Feb. 3, 03.
2
 Fallah, H. and Lechler T.G. (2005) Global Innovation Performance: Strategic
Challenges for Multi-national Corporations. Currently under Review in Journal of
Engineering and Technology Management.
 Van den Bulte, C. (2002) The Bass Diffusion Model is not a Mixture of Innovators and
Imitators. Working Paper.
 Van den Bulte, C. (2002) Want to know how diffusion speed varies across countries
and products? Try using a Bass model. PDMA VISIONS OCTOBER 2002 VOL.
XXVI NO. 4.
 Porter M. E., Stern, S. (2001) National Innovative Capacity. In: The Global
Competitiveness Report 2001-2002; New York: Oxford University Press, 2001, p.102118.
 Beise, M., Cleff, T. (2002) Predicting Lead Markets for New Innovation Projects.
Working Paper.
 von Zedtwitz, M., Gassmann, O., Boutellier R. (2004) Organizing global R&D:
challenges and dilemmas. In: Journal of International Management 10 (2004) 21–49.
 Michele E. A. Jayne and Robert L. Dipboye (2004) Leveraging Diversity to Improve
Business Performance: Research Findings and Recommendations for Organizations.
Human Resource Management, Winter 2004, Vol. 43, No. 4, Pp. 409–424.
 Härtel C. (2004) Towards a Multicultural World: Identifying Work Systems, Practices
and Employee Attitudes that Embrace Diversity. Australian Journal of Management,
Vol. 29, No. 2 December 2004.
Additional Readings
Freeman C. (2002) Continental, national and sub-national innovation systems—
complementarity and economic growth. Research Policy 31, p.191–211.
Assignments
The course assignments consist of four distinctive deliverables.
1. Class Participation
Class participation on all cases and discussions are essential to enhance the
learning experience. Attendance in class sessions is an important component of this
grade. Everyone is expected to have read the assigned material and participate actively in
the lecture discussions.
2. First Presentation
This presentation includes two knowledge areas:
The first includes the history and profile of the chosen global organization. The following
topics should be addressed:
 Company/SBU (Strategic Business Unit) history (historical development, Growth
and Internationalization
 Products (Market share of products vs. industry (Generation related), Country
specific Key customers)
 Technologies (Generations, Patents, R&D expenditure/year, patents/R&D$)
3
 Level of globalization of the value chain (Countries, Investments, Functions)
 Competitors (Local & Global Profile & Strengths)
The second includes topics of global knowledge access. The following topics should be
addressed:
 NIS Profile of home country and one major global base
 Organizational structure of R&D and global functions
 teaming and identify any virtual teams Management Processes, local and global
Application of IT
3. Final Presentation
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This presentation addresses:
Global Collaborations (Types and numbers of partners)
Market growth of country vs. market growth of firm (partners, investments)
Diffusion of product generations in home country and one major global base
(Market growth of country vs. market growth of firm)
Global Innovation Strategies (Evidence of a global innovation approach)
Summary of findings (SWOT-Analysis of chosen organization)
Observations and Conclusions Insight from the case study
4. Term Paper
Comprehensive summary of the presentations with additional literature analysis.
Submission of Assignments
All assignments have to be submitted in electronic form to the following email
address: tlechler@stevens.edu. Assignments will be only accepted if they were submitted
within the due date.
Grading:
Assignments
1. Class Participation (individual)
2. Exam (individual)
3. Term Project (team max 3)
 1st Presentation (125 pts)
 Final Presentation (125 pts)
 Term Paper (250 pts)
Total Points
Grade
Points
250
250
500
1000
4
A
1000 –
950
A949 –
900
B+
899 –
867
Letter Grade Scheme
B
BC+
866 – 833 – 799 –
834
800
767
C
766 –
734
C733 –
700
F
699 –
0
... the instructor reserves discretion to drastically grade down for a) poor writing b) poor
team participation c) delayed submission
Ethical Conduct
The following statement is printed in the Stevens Graduate Catalog and applies to all
students taking Stevens courses, on and off campus.
“Cheating during in-class tests or take-home examinations or homework is, of course,
illegal and immoral. A Graduate Academic Evaluation Board exists to investigate
academic improprieties, conduct hearings, and determine any necessary actions. The
term ‘academic impropriety’ is meant to include, but is not limited to, cheating on
homework, during in-class or take home examinations and plagiarism.“
Consequences of academic impropriety are severe, ranging from receiving an “F” in a
course, to a warning from the Dean of the Graduate School, which becomes a part of the
permanent student record, to expulsion.
Reference:
The Graduate Student Handbook, Academic Year 2003-2004 Stevens
Institute of Technology, page 10.
Consistent with the above statements, all homework exercises, tests and exams that are
designated as individual assignments MUST contain the following signed statement
before they can be accepted for grading.
____________________________________________________________________
I pledge on my honor that I have not given or received any unauthorized assistance on
this assignment/examination. I further pledge that I have not copied any material from a
book, article, the Internet or any other source except where I have expressly cited the
source.
Signature ________________
Date: _____________
Please note that assignments in this class may be submitted to www.turnitin.com, a webbased anti-plagiarism system, for an evaluation of their originality.
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Course Schedule
Session 1
Global Innovation Management – Overview
Organization of the Course
Globalization, Innovation, and Innovation Management
Traditional Approach to Globalization of the Value Chain. Globalization of

Markets

Logistics

Production

R&D
Competition in the Knowledge Economy Management of innovation at a global
level
Reading:
 Fallah, H. and Lechler T.G. (2003) Global Innovation Management in Wireless
Communications Industry, IAMOT conference proceedings.
 Engardio, P., Bernstein, A. and Kripalani, M. (2003) Is Your Job Next? In:
Business Week, Feb. 3, 03.
 Textbook Chapter 1 (p.1-p.28).
Session 2
Strategic Global Innovation Challenges for Multi-national Corporations
Strategic Global Innovation Challenges:
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Global Innovation Reach
Global Innovation Performance
Global Reach – Global Performance Relation
NIS Players
Global context, Focus, Regional Affinity
Reading:
 Fallah, H. and Lechler T.G. (2005) Global Innovation Performance: Strategic
Challenges for Multi-national Corporations. Currently under Review in
Journal of Engineering and Technology Management.
 Textbook Chapter 2 (p.29-p.52).
Session 3
Global Product And Technology Diffusion
Defining diffusion
Global Product and Technology Diffusion & Forecasting
Global Diffusion Barriers and Drivers;
Elements of Diffusion Process
Typical Analytical Diffusion Models
 Bass Model
 Mansfield Model
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 Rogers Model
 Fisher-Pry Model
 Gompertz Model
Reading:
 Van den Bulte, C. (2002) The Bass Diffusion Model is not a Mixture of
Innovators and Imitators. Working Paper.
 Van den Bulte, C. (2002) Want to know how diffusion speed varies across
countries and products? Try using a Bass model. PDMA VISIONS
OCTOBER 2002 VOL. XXVI NO. 4.
Session 4
Global Innovation Context: National Innovation Systems
National Innovation Systems:
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Structure of National Innovation Systems
Performance Indicators in NIS
NIS functions- Invest, Diffuse, Adapt
NIS Players
Global Context, Focus, Regional Affinity
Readings:
Porter M. E., Stern, S. (2001) National Innovative Capacity. In: The Global
Competitiveness Report 2001-2002; New York: Oxford University Press, 2001,
p.102-118.
Supplemental Readings:
Freeman C. (2002) Continental, national and sub-national innovation systems—
complementarity and economic growth. Research Policy 31, p.191–211.
Session 5
Innovation and Global Marketing
Identification of global market needs
 The Lead-user Concept
 The Lead Market Concept
Reading:
 Beise, M., Cleff, T. (2002) Predicting Lead Markets for New Innovation
Projects. Working Paper.
Session 6
Components of a Global Innovation Strategy
A Framework for Global competition
Elements of a global innovation strategy
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Organization
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Market
Technology
Innovation process
Environment
o Competitors
o Suppliers
o Culture & Diversity
o Political forces
Foreign Direct Investment (FDI), Dominance of MNC’s in World wide
Technology, Technological Competence in Developing Countries, Technology
Acceptance in Western Countries, Establishing Global Standards, and Dominant
Design, Market Segmentation and Customer Focus, Concentration on Core
Competencies, Integration of Global Suppliers, Merging Technologies, New
Information Technologies, Importance of the Knowledge Source, Multi-project
Management, Corporate Culture
Reading:
 Textbook Chapter 3 (p.53-p.84).
Session 7
Session 8
1st Student Presentation
Guest Speaker Case Review & Midterm Exam
Reading:
 Becton Dickinson Case reading and preparation.
Session 9
Global Innovation and Organization
Importance of Global R&D
Five concepts of organization design
 Ethnocentric Centralized R&D
 Geocentric Centralized R&D
 Polycentric Decentralized R&D
 R&D Hub Mode
 Integrated R&D Network
Evolution of R&D organizations
Levels of Organizational Structure
Approaches to Improving International R&D
Organization for Global Innovation
Reading:
 von Zedtwitz, M., Gassmann, O., Boutellier R. (2004) Organizing global
8
R&D: challenges and dilemmas. In: Journal of International Management 10
(2004) 21–49.
Session 10
Global Innovation Sourcing
Resource Management for global innovation processes
Virtual teams
Global project management
Managing innovations in multicultural dispersed teams
 Efficiency vs. effectiveness
Reading:
Session 11
 Textbook Chapter 8 (p.197-p.217).
 Michele E. A. Jayne and Robert L. Dipboye (2004) Leveraging Diversity to
Improve Business Performance: Research Findings and Recommendations for
Organizations. Human Resource Management, Winter 2004, Vol. 43, No. 4,
Pp. 409–424.
Process of Global Innovation
Traditional Innovation process
 The innovation Funnel
o Front-end
o Design & development
o Market introduction and ramp up
The Global R&D Process, Differences between the Three Phases
o Sensing
o Organizing
o Exploiting
Evolution of global innovation process
Reading:
 Textbook Chapter 7 (p.169-p.195).
Session 12
Global Innovation Culture
Managing innovations in multicultural teams
 Analyzing and managing Cultural Diversity
 Team Learning as a Driver for International R&D,
 Managing, Management Concepts Difficult to Transfer,
Reading:
 Härtel C. (2004) Towards a Multicultural World: Identifying Work Systems,
Practices and Employee Attitudes that Embrace Diversity. Australian Journal
of Management, Vol. 29, No. 2 December 2004.
9
Session 13
Global Innovation Collaboration
Managing access to technology and market know-how
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
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Session 14
Forms of collaboration
Phases of the collaboration process
Collaboration with Competitors: Co-opetition
Global R&D Alliances and their problems
Final Case Presentation
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