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Unformatted text preview: AEM220, Introduction to Business Management. Wednesday 2/13 Technology and Innovation Technology and Economic Growth Types of Innovation The Innovation Process Y = f (K, L, innovation) Kondratieff Waves Definitions
Technology The application of scientific and engineering knowledge to achieve a practical result. Research An orderly approach to the revelation of new knowledge about the Universe. Development The application, expansion and interconnection of scientific and engineering knowledge to generate technology. Areas of Rapid Technological Development
Information and Communication Technology Internet Software Cellular telephony Biotechnology Genomics Agriculture
Genetically modified organisms Biological sciences Nanotechnology Energy / Sustainability / Recycling and reuse / total product life cycle "Disruptive" Technologies
Technologies and products that, while being "good enough", offer qualitative improvements in other areas of performance; Discount stores Internet PDA's Innovation that expands on product characteristics and value propositions already in place; Fundamental changes in product characteristics or value propositions. Incremental innovation Radical innovation The Four Principles of Disruptive Technology
Companies depend on customers and investors for resources; Small markets don't solve the growth needs of large companies; Market's that don't exist can't be analyzed; Technology supply may not equal market demand. Sources of Technology
Internal R&D Joint Ventures Contract out Licensing Purchase Purchase of the company developing the technology. Sources of Technology
Market pull Technology push Competition References / Recommended reading
"The Economics of Industrial Innovation", Freeman and Soete, 1997 "The Innovators' Dilemma", Christensen, 1997 "Mastering the Dynamics of Innovation", Utterback, 1994 Survey "Innovation in Industry", The Economist, February 18th, 1999 Take-aways
The biggest single source of economic growth and prosperity is technological innovation, carried on in business organizations; There are various types of technological innovation Product vs. Process Innovation Incremental vs. Radical vs. Disruptive Innovation The process of technological innovation is complex, and requires purposeful management and adequate resources. ...
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- Winter '07