Chapter 11 - Technology-based industries & the management of innovation. This chapter presents the following content: Competitive advantage in technology-intensive Industries, strategies to exploit innovation, competing for standards, implementing technology strategy. | Technology-based Industries & the Management of Innovation Competitive advantage in technology-intensive Industries Appropriating the returns to innovation Strategies to exploit innovation Alternative approaches Timing: to lead or to follow? Managing risk Competing for standards Implementing technology strategy The conditions for creativity From invention to innovation OUTLINE 1 The Development of Technology: From Knowledge Generation to Diffusion Basic Knowledge Invention Innovation Diffusion IMITATION ADOPTION Supply side Demand side 3 The Development of Technology: Lags Between Knowledge Generation and Commercialization BASIC FIRST PRODUCT IMITATION KNOWLEDGE PATENTS LAUNCH Xerography late 19th and 1940 1958 1974 early 20th centuries Jet Engines 17th-- early 1930 1957 1959 20th centuries Fuzzy logic 1960’s 1981 1987 1988 controllers 4 Appropriation of Value:- How are the Benefits from Innovation Distributed? Customers Suppliers Imitators and other “followers” Innovator 8 The Profitability of Innovation Legal protection Complementary resources Imitability of the technology Lead time Profits from Innovation Value of the innovation Innovator’s ability to appropriate the value of the innovation 7 Legal Protection of Intellectual Property Patents —exclusive rights to a new product, process, substance or design. Copyrights —exclusive rights to artistic, dramatic, and musical works. Trademarks — exclusive rights to words, symbols or other marks to distinguish goods and services; trademarks are registered with the Patent Office. Trade Secrets — protection of chemical formulae, recipes, and industrial processes. Also, private contracts between firms and between a firm and its employees can restrict the transfer of technology and know how. 9 Complementary Resources Bargaining power of owners of complementary resources depends upon whether complementary resources are generic or specialized. Manufacturing Distribution Service Complementary . | Technology-based Industries & the Management of Innovation Competitive advantage in technology-intensive Industries Appropriating the returns to innovation Strategies to exploit innovation Alternative approaches Timing: to lead or to follow? Managing risk Competing for standards Implementing technology strategy The conditions for creativity From invention to innovation OUTLINE 1 The Development of Technology: From Knowledge Generation to Diffusion Basic Knowledge Invention Innovation Diffusion IMITATION ADOPTION Supply side Demand side 3 The Development of Technology: Lags Between Knowledge Generation and Commercialization BASIC FIRST PRODUCT IMITATION KNOWLEDGE PATENTS LAUNCH Xerography late 19th and 1940 1958 1974 early 20th centuries Jet Engines 17th-- early 1930 1957 1959 20th centuries Fuzzy logic 1960’s 1981 1987 1988 controllers 4 Appropriation of Value:- How are the Benefits from Innovation Distributed? Customers Suppliers Imitators and other “followers” .
