Fundamentals of Innovation
13 important questions on Fundamentals of Innovation
When is an innovation competence enhancing?
When is an innovation competence destroying?
Why is the performance improvement slow in the S-curve early stage?
No evaluation routines to assess progress or potential.
Difficult to attract other researchers if no legitimacy is established.
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What are discontinuous technologies?
What is technology diffusion?
Why do some firms shift more slowely to new groundbreaking technologies?
- Complexity of the knowledge underying new technologies
- Slow development of complementary resources that make the technology useful.
What are the limitations of the S-curve model as prescriptive tool?
- It is rare that the true limits of a technology are known in advance, and there is often disagreement what that limit wil be.
- S-curve is not set in stone. Unexpected market changes, complementary technologies, etc, can change the lifespan
- Firms can influence the shape of the curve with their own development activities.
What are the factors that influence wheter switching to a new technology will benefit a firm?
- Advantages offered by the new technology
- If the technology fits the firms abilites
- If it fits the firms position in complementary resources
- The expected rate of diffusion, switching earlier or later than it should based on the s curve of diffusion
What is the cycle of technological change?
What are the phases of the technology evolution model of Utterback and Abernaty?
Specific phase (innovations become specific to the dominant design)
What is the 'era of incremental change'?
What are the main difficulties of disruptive innovation?
- The best customers do not want disruptive innovations
- Disruptive innovations often do not provide the profit margins companies seek
- Small markets do not solve the growth needs of large companies, and markets that don't exist cannot be analysed
- Financial investment tools are biased towards existing businesses
What is an example of Creative Destruction, introduced by Schumpeter?
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