ch11 - Technology-based Industries & the Management of...

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Unformatted text preview: 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 The Development of Technology: From Knowledge Generation to Diffusion Basic Knowledge Invention Innovation Diffusion IMITATION ADOPTION Supply side Demand side 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 MP3 players Early 1990s 1994 1997 1999 Appropriation of Value:- How are the Benefits from Innovation Distributed? Customers Suppliers Imitators and other “followers” Innovator 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 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. Complementary Resources Bargaining power of owners of complementary resources depends upon whether complementary resources are generic or specialized . Manufacturing Distribution Service Complementary technologies Other Other Marketing Finance Core technological know-how Lead Time • If rivals can imitate—time lag is the major advantage of the innovator. • But maintaining lead-time advantage requires continuous innovation • Lead time is reinforced by learning effects U.S. Managers’ Perceptions of the Effectiveness of Different Mechanisms for Protecting Innovation Processes Products Patents to prevent duplication 3.52 4.33 Patents to secure royalty income 3.31 3.75 Secrecy 4.31 3.57 Lead time 5.11 5.41 Moving quickly down the learning 5.02 5.09 curve...
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This note was uploaded on 08/29/2011 for the course BMGT 3712 taught by Professor Simone during the Spring '11 term at University College Dublin.

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ch11 - Technology-based Industries & the Management of...

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