Speeding up the pace of new product development
Abstract:
A study empirically investigates a wide array of factors that have been argued to differentiate fast from slow innovation processes from the perspective of the research and development organization. The effects of strategic orientation (criteria- and scope-related variables) and organizational capability (staffing- and structuring-related variables) on the speed of 75 new product development projects from 10 large firms in several industries are tested. Backward-elimination regression analysis revealed that clear time-goals, longer tenure among team members, and parallel development increased speed, whereas design for manufacturability, frequent product testing, and computer-aided design systems decrease speed. However, when projects were sorted by magnitude of change, different factors were found to influence the speed of radical and incremental projects. Moreover, some factors that sped up radical innovation were found to slow down incremental innovation.
Corporate strategies in environmental management
Abstract:
Environmental management has become an issue of substantial concern, particularly in the chemical industry. A comparative study of US and German chemical companies shows that they adopt substantially different strategies to express this concern. Four different strategies have been identified, and the characteristics that indicate responses to environmental factors are substantially different among the clusters. It is suggested that regulatory agencies should take these differences into account, and that companies that have adopted a particular strategy should be aware of alternative approaches by their competitors. The choice of new technology and the R&D portfolio will be affected by the strategies chosen.
Take a proactive approach to negotiating your R&D budget
Abstract:
R&D directors continue to behave defensively when negotiating their budgets, while their colleagues who represent other business functions use more aggressive approaches. It is argued that at least 4 reasons can explain this behavior: 1. cultural differences between business functions, 2. lack of appropriate data, 3. distance from value creation in the market, and 4. smaller degree of activity standardization. A more offensive approach could be supported by developing R&D metrics that resemble the standard business metrics used in other functional areas.
Innovation speed: A conceptual model of context, antecedents, and outcomes
Abstract:
There is a growing recognition that innovation speed is important to a firm's creating and sustaining competitive advantage amid rapidly changing business environments. A study organizes and integrates the innovation speed literature, develops a conceptual framework of innovation speed and offers researchable propositions relating to the need for and antecedents and outcomes of innovation speed. Three specific arguments are presented: 1. Innovation speed is most appropriate in environments characterized by competitive intensity, technological and market dynamism and low regulatory restrictiveness. 2. Innovation speed can be positively or negatively affected by strategic-orientation factors and organizational-capability factors. 3. Innovation speed has an influence on development costs, product quality and project success.
Generic knowledge strategies in the U.S. pharmaceutical industry
Abstract:
A study identifies groups of firms with similar generic knowledge strategies, determines how these strategies change over time, and compares profit margins of the groups. Knowledge strategies of 21 US pharmaceutical firms are analyzed from 1977 to 1991. Cluster analysis is used to group firms over different time periods based on: 1. balance between internal and external learning, 2. preference for radical or incremental learning, 3. learning speed, and 4. breadth of knowledge base. The findings indicate that there are 4 generic knowledge strategy groups: explorers, exploiters, loners, and innovators. Most firms remain in the same knowledge group over time. The firms in the innovator and explorer groups tend to be more profitable than the firms in the exploiter and loner groups.
Technological learning, strategic flexibility, and new product development in the pharmaceutical industry
Abstract:
The objective of this study was to better understand strategic management using the dynamic capabilities approach. Two fundamental constructs of dynamic capabilities, technological learning and strategic flexibility, are focused on and their influence on organizational performance is discerned. The main argument has been that a firm's strategic flexibility moderates the relationship between technological learning and technological performance as evidenced by new product development. The model is based on the synthesis of the traditions of research in strategic and technology management. Technological learning has been defined in 2 dimensions: internal and external learning. Strategic flexibility has been operationalized in financial, marketing, manufacturing, and technological dimensions. Data from the US ethical pharmaceutical industry for 1977-1991 are used to test the hypotheses. Although support is found for the basic argument, it has been observed that the strategic flexibility factors are related with the variables in a more complex way. Furthermore, internal learning involves a different process than learning from external sources.
Technology transfers and knowledge interactions among defence firms in the USA: An analysis of patent citations
Abstract:
The role of military R&D in the civilian economy has been a controversial one. With rapid changes in the geopolitical power structure, the debate about the defense technology has assumed a higher level of significance. The defense sector has been a driving force in many new technologies, such as developments in microelectronics, computers, semiconductors, and aviation. While one can marvel at the contributions of these technologies on the growth of the civilian economy, one can argue about the effectiveness of defense R&D in producing and diffusing technology suitable for the civilian sector. The pattern of transfer of technology between defense firms and other organizations is investigated. The patents for 8 large defense contractors, including Boeing, Lockheed, and McDonnell Douglas, are analyzed
Does it pay to acquire technological firms?
Abstract:
An attempt is made to get a closer look into the technological motive of the foreign acquisitions. The study followed a 2-step procedure. A first survey of 86 firms was undertaken through a questionnaire to identify those acquisitions which were motivated by technological interest. The questionnaire identified 4 classes of companies with different motives for acquisitions: 1. market oriented entrepreneurs, 2. short-term profit seekers, 3. technological acquirers, and 4. preemptive market protectors. The 2nd survey investigated the process and the results of acquisitions with a special view on the role of research and development through 60 interviews in 30 acquisition cases in both acquiring and acquired units. It was found that a network of variables explains the success. The most important of these variables are context variables, size of both firms, low degree of formalization, expertise, and lack of conflicts about technological philosophy.
Defense R & D, technology, and economic performance: A longitudinal analysis of the U.S. experience
Abstract:
A longitudinal analysis is performed to establish the relationship between defense spending for R&D and economic performance, as well as the indirect relationship via the development of: 1. technical and scientific skills, and 2. new technology. The model was estimated for the period 1955-1988 on a time-series set measured as elasticities. The effect of defense R&D is measured by the number of patents granted to US organizations and individuals. Some scholars have argued that military spending diverts resources from the civilian sector, but this analysis found no statistically significant evidence of resource diversion. In fact, the federal government promotes R&D investment by awarding contracts through a competitive procurement process. In this process, the government reveals the demand for certain technological innovations and encourages private firms to invest in R&D. However, the non-R&D aspect of defense spending appears to have no significant effect on economic performance through technical change and technical skills formation.
Survey of the computer-integrated manufacturing literature: A framework of strategy, implementation, and innovation
Abstract:
A model of computer-integrated manufacturing (CIM) as the integration of strategy, implementation, and innovation is presented. Strategy emphasizes a clear understanding of the objectives and goals of the organization. Strategy can be understood in terms of the interaction between product and process strategies, critical success factors, and product life-cycle. Implementation stresses an iterative incremental process based on strategy, user involvement, and tolerance. Innovation is the result of a successfully implemented strategy. It is both organizational learning and change. The challenge of CIM has been to implement enough of the technology, in order to achieve the best competitive advantage, without investing unnecessary time or capital. The organization has to develop a strategy which best fits the environmental conditions in which it is operating.
Interorganizational transfer of knowledge: An analysis of patent citations of a defense firm
Abstract:
Although technology is considered to be a strategic asset for an organization, an interplay in technology among organizations is necessary. Technology may be viewed as a bank that organizations both contribute to and withdraw from. Such interactions among organizations in technology follow different patterns. Preliminary results from a study addressing these issues are presented. Using patent-citation data, it is shown how the benefits to participating firms change with industry type, organization class, country of origin, and so on. By observing who is cited by McDonnell Douglas and who have cited patents assigned to McDonnell Douglas, the flow of techincal knowledge has been quantified. A more complete picture of the flow of defense technology may be obtained by considering such flows between all major defense firms and the diffferent sectors of the economy.
Industry Characteristics Influencing the Technical Output: An analysis of patents
R & D Management
; Oxford; Apr 1991; Chakrabarti, Alok K.;Abstract:
Using the small and medium-size firms in the US as a sample, the interrelationship among patents, publications, and new products is examined. Correlates of research and development (R&D) expenditure, patents, papers, and new products are pre
sented. Relationships between firm size and R&D output and productivity are also investigated. The data show that the 3 indicators are related, but their strength of relationship varies with industries. Although the data point to the fact that small firms are more productive than their larger counterparts, there are many reasons to come to such a generalization. R&D data are not reliable for small firms, as the very definition of R&D differs from firm to firm. The nature of R&D and opportunities for patents or new products change as the firm grows in size. This makes it difficult to accurately measure and compare the R&D efficiency across firms of different sizes.
Competition in High Technology: Analysis of Patents of U.S., Japan, U.K., France, West Germany, and Canada
Abstract:
Using US patents as the surrogate measure of technological positions, an examination is performed of the competitive positions of industrial nations, including the US, the UK, France, West Germany, Canada, and Japan, in high-technology areas during 1975-1988. High-tech industry is considered to be one that requires a high proportion of research and development (R&D) expenditure and employs a high proportion of scientists and engineers. These industries are subdivided into 4 categories in terms of their market and/or use: 1. equipment, 2. consumer durable products, 3. nondurable products, and 4. intermediate products. An evaluation is also made of how various countries have specialized in different product market areas within the high-tech sector. For a better understanding of the impact of the patents, the citations per patent for the various countries are examined, as well as each country's citation performance ratio. Japan is shown to be a leader in all 4 sectors, while the US demonstrates a declining trend in equipment and intermediate goods. The US needs to pay greater attention to the development of new technology to gain a dominant position in the global marketplace.
Innovation and Productivity: An Analysis of the Chemical, Textiles and Machine Tool Industries in the U.S.
Abstract:
The relationship between innovation and productivity growth in the chemical, textile, and machine tool industries is explored. Information about innovations was gathered from published sources. Although the link between innovation and productivity can be complex, slowdown of productivity growth in the chemical industry was noted to coincide with a significant slowdown in innovation. An opposite trend was noted in the textile industry. Although the machine tool industry showed an increase in innovation, productivity growth consistently slowed during 1967-1984. Cyclical fluctuation in machine tool demand may have created a difficult problem. Small companies interested in producing special-purpose machines used labor-intensive processes that did little to improve productivity. These firms' excess wages could not be reflected in the price because of intense competition.
Scientific Output of Small and Medium Size Firms in High Tech Industries
Abstract:
The scientific output of small and medium-sized firms in high-technology industries in the US is analyzed using 3 indicators: 1. patents, 2. publications, and 3. products. Data were obtained on 178 high-tech firms for the period 1977-1986. Except for the chemical industry, research and development (R&D) expenditure is closely related to size as measured by annual sales, rather than net income. It is found that a growing firm is more likely to spend proportionately more money on R&D. The 3 output measures are correlated, but the pattern of relationship differs in different industries. Only in some industries is firm growth linked to new products. Patent does not seem to have an impact on sales growth. The growth in R&D is not a factor leading to a higher level of scientific productivity. The important factor is the average level of R&D spending, implying that firms should maintain a steady funding level of R&D instead of sudden changes in the R&D budget.
Organizational Factors in Post-Acquisition Performance
Abstract:
Post-acquisition success of firms depends not only on the strategic fit between the merging companies, but also on the organizational integration between them. A study was conducted of 31 acquisitions; data were obtained from executives in the acquired divisions and the corporate officers via structured interviews and questionnaires. The results reveal a lack of relationship between the professed motives of acquisition and postacquisition performance. It appears that the lure of quick, profitable growth through acquisition does not often materialize, regardless of motive. Postacquisition performance depends on a variety of factors and assistance accorded to the division by the corporate organization. Intensive communication between the acquired division and the other organizational units on technology and joint projects are critical elements in sharing strategic capabilities.
The Division of Labour in Innovation Management
Abstract:
The roles in innovation management have not provided a systematic and unique pattern of relationship that can serve as an instrument of organization. An analysis of empirical findings has shown the existence of a division of labor in innovation management in a multiple role concept. These concepts, such as "product champion" and "technical innovator," have elements of commonality and complementarity. Two underlying principles can be identified as division of labor according to: 1. phases of the innovation process, and 2. sources of power of the incumbents. An interaction model and a process linkage model for innovation management are proposed to explain these different findings. The models can help to integrate the empirical concepts and serve as guidelines for possible organization of the innovation process.
Technology Indicators: Conceptual Issues and Measurement Problems
Abstract:
Conceptual issues dealing with the definition and measurement of "technology indicators" are presented. Different indicators measure different aspects of technology and thus have different implications for policy issues at both the macroeconomic and the microeconomic level. Research on technology indicators can be divided into 3 categories, each having a particular problem. The literature-based approach, following the method of Gellman Research Associates, uses scientific and technical literature as the primary source for defining the populations of innovations, but this method is lengthy and cumbersome. The expert-based approach, developed at the University of Sussex, surveys a large number of experts, yet this method tends to emphasize recent and significant innovations. The survey-based approach is used in many countries and surveys many firms. This approach, however, relies on the firms' response rate. Used alone, patents may not provide a true measure of technology. Measures of research and development expenditures can help lead to an understanding of various industries' priorities.
Trend and Stochastic Movements in US Merger Activity
Abstract:
Time-series analysis of merger activity in US mining and manufacturing for the period 1919-1979 indicates that neither a deterministic trend nor a pure random walk hypothesis fully explains the merger activity. The analysis shows that a stochastic pattern in the series could be extrapolated, although the data exhibit no clear deterministic trend. This underlying pattern can be explored in the short horizon to predict merger activity because the series drifts upward or downward fairly systematically. The time variable is positive and is statistically significant, indicating that merger activity correlates positively with the time trend. The evidence shows that the number of mergers increases by 11 each year. The growth rate is about 2% for the period studied. The empirical evidence suggests that merger movements for the current and 2 previous years contain information that can be used to predict subsequent changes.
Trends in Innovation and Productivity: The Case of Chemical Industry
R & D Management
; Oxford; Apr 1988; Chakrabarti, Alok K.;Abstract:
A study attempted to investigate an empirical linkage between technological innovation and productivity in US chemical and textile industires. During the period 1967-1982, the textile industry maintained a steady increase in productivity, while the chemical industry experienced sharp productivity declines. The textile industry coped with stiff competition from foreign manufacturers by increasing productivity through: 1. internal and external innovations, and 2. major technical changes introduced by equipment manufacturers. The decline of the chemical industry was due to: 1. the 2 oil crises and their adverse effect on demand and cost of chemical production, 2. changes in regulatory requirements for pollution control, 3. competition from foreign manufacturers, 4. large increases in capacity for which growth did not materialize, and 5. the maturing of the industry in terms of technological and market opportunities.
R&D/Marketing Linkage and Innovation Strategy: Some West Germa n Experience
IEEE Transactions on Engineering Management; New York; Aug 1988; Brockhoff, Klaus; Chakrabarti, Alok K.;
Abstract:
Research and development (R&D) and marketing departments in 31 German companies were surveyed to gather information on the success rate of innovations, reasons for failure, marketing-technology strategy, and the dynamics of the technological environment. Marketing was mentioned as the primary cause of innovation failure, but it was found that the reasons for product innovation failure were embedded in complex multidimensional factors related to the fit between strategic behavior and the demands of the competitive environment. Four different technology strategies were pinpointed: 1. defensive imitator, 2. process developer, 3. aggressive specialist, and 4. aggressive innovator. The 4 marketing strategies identified were: 1. defensive imitator, 2. market defender, 3. market penetrator, and 4. innovative marketer. In a dynamic technological environment, firms used an aggressive marketing strategy and less aggressive technology strategy. In determining innovation success, the technology push factor was found to be no less effective than the market pull factor.
Technology, Innovation and Performance in Corporate Mergers: A Managerial Evaluation
Abstract:
Many firms engage in mergers and acquisitions in an effort to gain new technologies to improve growth and performance. A study was conducted that focused on managerial perceptions of the success of corporate mergers and acquisitions as a means of acquiring new technologies. Data were gathered from 31 firms through interviews and questionnaires. The study indicated that the highest ranked professed motives for mergers and acquisitions -- increased profitability and growth -- were rarely achieved. It was found that a proactive and aggressive research and development policy in the post-acquisition period was related positively with performance. Improved post-acquisition performance was found to be related with competitive environment, and this necessitated incremental changes in improvements in products and production processes. Sharing of the corporate technology with the acquired division was found to improve the division's performance.
Firm and Industry Characteristics Influencing Publications of scientists
R&D Management
; Oxford; Jul 1987; Halperin, Michael R.; Chakrabarti, Alok K.;Abstract:
A study was conducted to examine the relationship between the volume of scientific and technical publications produced by industrial scientists and the characteristics of the corporations in which they work. Some 225 publicly held companies were examined; each had a consistent history of substantial expenditure on research and development. Financial data for the companies were taken from Business Week magazine and cover the period 1975-1983. The companies were grouped into 4 categories: 1. high-technology industries, 2. resource-intensive industries, 3. capital-intensive industries, and 4. other. Results indicated a strong correlation between publications and patents, but this proved to be weaker after controlling for size. It also was found that publication and patenting differed among industry categories. Firms in high-technology industry had the highest number of patents and papers. Finally, the number of elite scientists was found to be a good predictor of publication behavior
Innovation and U.S. Competitiveness
Abstract:
The US traditionally has been the technological leader in many industries, but other countries have been catching up in terms of productivity and product technology. The pace of innovation in the US has slowed, as evidenced by decreasing productivity growth for most US manufacturing industries. The slackening pace of innovation is a result of maturing technology and the concomitant reduction in commitment to research and development (R&D). In addition, innovation in electronics has not offset the slowdown elsewhere, and computer technology has yet to have a substantial impact on productivity. Business strategies and government policies should incorporate a global view of technology. The government should: 1. devise tax incentives to sustain industrial R&D, 2. seek ways to sponsor technological development, and 3. set trade policies that allow US firms to compete on fair terms.
Acquisitions: Do They Really Work Out?
Abstract:
An appropriate acquisition can help a company accomplish its strategic objectives, while a poor one can create critical problems. Factors that determine whether an acquisition is appropriate or poor are examined. Through the use of structured interviews with corporate presidents and surrogates, data are obtained on 8 firms and their 16 acquisitions. Their post-acquisition performance is analyzed with respect to the original motives behind the acquisitions. Factors affecting performance are examined. In order to increase their chances of post-acquisition success, acquisition-minded managers should: 1. ask themselves what immediate benefits their firm can provide to the acquired firm and how this will result in long-term synergisms for both firms, 2. have a ''patient partnership'' rather than a ''what-can-you-do-for-the-parent-firm'' mentality, 3. seek creative combinations of the indigenous capabilities of the 2 firms, and 4. be sure that managers from both firms understand each other's technologies and businesses.
Reindustrialization of the United States: Three Perspectives on Organizational Adaptation
Abstract:
Reindustrialization and industrial policy have gained much attention in the mass media, business literature, and political debate. Through a close examination of 3 books expressing varying views on industrial policy, an attempt is made to go beyond the usual political rhetoric to gain an understanding of the differences and similarities among them. The 3 books are: 1. Robert B. Reich's The New American Frontier, 2. Renewing American Industry, by Paul R. Lawrence and Davis Dyer, and 3. Industrial Renaissance, by William Abernathy, Kim B. Clark, and Alan M. Kantrow. While all of the authors agree that changes in the world market have caused the economic decline of the US economy, they differ on their prognosis of the situation. Still, a common theme seems to pervade all 3 books: the need for change and adaptation. Reich argues for the dismantling of the government bureaucracy, while the others advocate a more sober, realistic approach for dealing with industrial revitalization.
Critical Factors in Technological Innovation and Their Policy Implications
Abstract:
The critical factors which affect the innovation process are explored. Proponents of the free enterprise system, many of whom represent various industries, persistently point out the deleterious effects of regulation and control on the innovation process. However, advocates of an activist government role can often cite protection of the common welfare as a primary need for government intervention. The government actually operates through many agencies, thus affecting firms and individuals at several levels and leverage points. Additionally, the same regulation that has deleterious effects on one industry might be a stimulus for innovation for another. A regulation may also act as a stimulus to direct efforts toward certain types of research and development (R&D) programs that would not otherwise be undertaken. To actually influence the innovation process, actions by both management and regulatory agencies are required.
Characteristics of Sources, Channels, and Contents for Scientific and Technical Information Systems in Industrial R and D
Abstract:
This review addresses the use of various scientific and technical information sources by engineers, scientists, and managers, using a Thurstone scaling technique to correlate frequency of use of the various sources, channels, and contents with various characteristics. For sources of scientific and technical information, characteristics of interest included utility of information, as well as ease and cost of use. For the content, characteristics included coherence of information, ease of use, and skills needed to use effectively. For the channels, characteristics included dependability, availability, and physical distance. Data gathered from a large number of respondents from a large corporation led to several primary findings: 1. Source availability and ease of use are the determinants for use of a specific source. 2. Availability, cost, and physical distance are most important in the use of a specific channel of information. 3. The only factors related to use are utility of information and coherence of information.
Technological Characteristics of Mergers and Acquisitions in the 1970s in Manufacturing Industries in the US
Abstract:
By studying the merger/acquisition announcements made in the Mergers and Acquisitions Journal, 1970s trends and their implications for economic theories and policy are analyzed. The emphasis is on acquisition of full or major ownership of firms in the manufacturing sector. Research and development (R&D) intensity, type of acquisition, and firm size are explored, and the types of acquisition/mergers are classified as: 1. vertical integration, 2. technology linkage, 3. different product, similar customer, 4. similarity in product and customer, and 5. diversification. Acquisitions/mergers are well distributed among various industry groups. Less R&D-intensive industries are more active in acquisitions, while firms from very high R&D-intensive industries preferred diversification in terms of customers and products. Small acquired companies are more likely to be from technologically intensive industries.
Targeting Technical Information to Organizational Positions
Abstract:
In their efforts to market new products and technology, industrial marketers must deal with technical personnel, including scientists and engineers. Because of their participation in the organizational buying process, scientists and engineers exert considerable influence in the area of adoption of technological products. An attempt is made to characterize the behavior of the technical people in terms of their acquisition of technical and scientific information. The subjects of a recent survey were scientific and technical personnel of a large organiza
tion involved in the fields of electronics, defense, aerospace, and automotive parts. The results of the survey indicated that with the exception of production engineers, all groups placed a high level of importance on scientific and technical information. Results showed that the information needs for the different groups in the organization were not homogeneous. Based on the results of the survey, industrial marketers should place emphasis on informational content in their communication to the technical community.
The Cross-National Comparison of Patterns of Industrial Innovations
Abstract:
A sample of 500 major industrial innovations originating in 6 industrialized nations between 1953 and 1973 were examined to assess the factors contributing to their development. Data on the innovations were obtained from published sources as well as from structured interviews with company representatives. While the US was responsible for the majority of the innovations, US dominance declined over time. In the US and Japan, innovations were targeted primarily to the consumer market, while the producer market was the beneficiary of most UK and West German innovations. In Canada, innovations were aimed equally at the producer and consumer markets; in France and West Germany, the government market was an important target of innovation. Relatively few innovations were radical in nature; most represented technological shifts. In all countries, innovation was related positively to industry concentration, product-line diversity, and firm size. However, small firms, especially in the US, were responsible for a substantial amount of innovation
Estimating Potential for Aftermarket Requirements
Abstract:
There have been major shifts in the economic factors affecting the electric utility industry as a result of changes in the supply and price of oil. There has been a decrease in the rate of domestic electric generation growth with the current rate only about one half the previous rate. The downturn in new construction and the future prospect of continued lower generation growth has caused maintenance to emerge as a key service market. Using published data, a study attempted to identify the independent parameters that explain correlation to the target market. Two classes of parameters may be identified: 1. those related to the wear and tear on the machinery directly and are indicative of mandatory maintenance, and 2. those that relate to the ability and motivation of the utilities to perform the planned level of maintenance and are indicative of discretionary maintenance.
Transfer of Indigenous Technology-Some Indian Cases
Abstract:
The problems of technology transfer from state-funded research institutions to industry, as well as the difficulties of acquiring and implementing such technologies, have received limited attention in the past. This study was designed to assess the relative size and impact of known factors which either encourage or discourage technology transfer, as well as identify newer factors specific to indigenous technologies. The study of technology transfer in India resulted in certain significant findings. First, procedural interlinks seem to be a major cause of time-lag in the transfer process. Second, success of the process depends on the scientific capabilities of the licensee. Third, innovating laboratories need strong design and engineering capabilities. Fourth, post-transfer services are not uniformly extended. Fifth, there is a tendency to stay away from high risk areas in technological choice. Sixth, operational problems do not seem to have an important effect on the transfer. These and other findings of the study are limited by inter- and intra-relationships between parameters in the study.
Coordination and Communication in Industrial Innovation: The R&D/Marketing Interface Problem
Abstract:
The process of moving an idea through development into a marketable product has been depicted as a series of steps or activities: 1. idea generation, 2. idea screening, 3. business analysis, 4. development, 5. testing, and 6. commercialization. The interactions between and among the various points are not specifically dealt with, even though the effectiveness of these relationships is crucial to the success of the product. Investigation of the various factors which have been reported to influence the success of both product and process innovations in private enterprises should reveal methods of improving the interfaces between departments, most especially, between research and development (R & D) and marketing. There are distinct benefits to be gained from a cooperative relationship between the R & D and marketing functions. Most respondents in a study recognized these benefits, yet integration of these 2 groups is difficult to achieve. It would seem that the best approach is to take a long-term view and attempt to integrate these 2 functional areas around tasks where the convergence of their separate qualifications has a recognizable return
Industrial Innovations: A Demographical Analysis
Abstract:
A demographic analysis of industrial innovations is presented. The analysis involved an examination of certain characteristics as predictors of success or failure. The study involved 116 projects and 18 field sites, and the industries surveyed manufactured both industrial and consumer products. Eight categories of impetus were developed from data on the innovations. ''Threats'' were considered to be immediate or future potential challenges to existing products or markets. ''Tactical Opportunities'' represented favorable junctures of product, market, or need factors relative to current product lines. ''Strategic Expansions'' represented planned ventures into markets or product lines new to the company. ''Line Protectors'' represented evolutionary changes of existing product lines.Data from the study suggest that ''Threats'' are strong impetuses for success if they are immediate. Yet, lack of urgency in threat projects is common due to poor commercial and technical communications. Minor-opportunity projects fail often due to a lack of marketing expertise and an inability to fit into the company's philosophy. Top-management projects fail often because they are grandiose and require large amounts of capital. Commercial-origin projects have higher success potentials than technical origin projects. Lack of marketing expertise is the major factor in project failure.
Industrial Product Innovation: An International Comparison
Abstract:
Data collected on 500 industrial innovations from 1953 to 1973 indicate that the United States has a distinct lead in the area of innovations in the international marketplace. Data were collected on 6 countries: 1. United States, 2. United Kingdom, 3. Canada, 4. France, 5. West Germany, and 6. Japan. West Germany and France were classified as technology exporters, while the other countries were technology importers. The lag time from invention to market introduction differed with each country. The analysis of the diffusion of the product innovations indicated the risks involved. Less than two-thirds of the innovations were financially profitable. In generating repeat orders, only 46% of the innovations were successful, and only 42% of the innovations became part of the standard product line.
Government Influence and Industrial Innovation
Abstract:
A study was recently conducted to determine the effect of government presence influence on a project. It can be shown that a regulation which may inhibit innovation in one company can actually encourage it in another. The study indicated that commercial outcome of the projects surveyed was not affected by the presence or absence of government influence. However, the technical outcome of the project was related to the presence of government influence. To analyze this study, it is important to note that in the projects reviewed an absence of antitrust or other market controls was found. The second conclusion regarding technical success projects were initiated as a result of a government regulation. In other words, these projects had to be completed. One of the more important influences is the fact that the government laid out the objective, thus giving the company something to aim at, and in some cases actually supplied a market for its products through a regulation.
The R&D/Marketing Interface: Results from an Empirical Study of Innovation Projects
Abstract:
The degree of collaboration between functional departments is related to the success of an innovation project. Problems that arise between a marketing and an R&D department include: 1. information transfer, 2. legitimacy questions, and 3. technical and marketing uncertainties. The methodology used in the present study involved the selection of sample firms, sample projects, and field interviews. The V1/4ld sites were distributed by level of technology, by centralization of the R&D function, by R&D size, and by sales volume. To test key propositions a variety of dependent and independent variables were used including: degree of commercial success, degree of technical success, clarity in understanding user needs, effectiveness of the intergration, and completeness of the information transferred. The results indicate that: 1. R&D capability is not the limiting factor. 2. Competition is not the primary motivation for innovation. 3. Technological opportunities are not the most important motivators. 4. R&D can be successful in innovating without being included in long range plans. 5. Environmental uncertainty does not determine success or failure.
THE ROLE OF CHAMPION IN PRODUCT INNOVATION
Abstract:
SUPPORTED BY DATA FROM 45 CASES OF PRODUCT-DEVELOPMENT WITH VARYING DEGREES OF SUCCESS, THE CONCEPT OF PRODUCT CHAMPION AND HIS ROLE IN THE INNOVATION PROCESS IS EXPLORED. PROBLEMS AS WELL AS THE DESIRABLE QUALITIES OF A SUCCESSFUL PRODUCT CHAMPION ARE EXAMINED. THE CHAMPION SHOULD POSSESS - 1. TECHNICAL COMPETENCE 2. KNOWLEDGE ABOUT THE COMPANY 3. KNOWLEDGE OF THE MARKET 4. DRIVE AND AGGRESSIVENESS 5. POLITICAL ASTUTENESS. THE MAJOR PROBLEM FACED BY HIM IS ISOLATION AND LACK OF COMMUNICATION WITH OTHERS - THE CHAMPION FEELS HE IS BECOMING AN EGOMANIAC, ALWAYS CRITICIZING AND EDUCATING THE PEOPLE AROUND HIM. HE ALSO MAY FEEL HE IS NOT APPRECIATED BY OTHERS IN THE COMPANY. TOP-MANAGEMENT SUPPORT FOR PRODUCT INNOVATIONS IS ESSENTIAL IF THE ENVIRONMENT IS TO BE CREATIVE. ORGANIZATION MEMBERS MUST BE ENCOURAGED TO THRASH AROUND IDEAS, TAKE MODERATE RISKS, AND FEEL A REAL SENSE OF BELONGING. CHART.
THE EFFECTS OF TECHNO-ECONOMIC AND ORGANIZATIONAL FACTORS ON THE ADOPTION OF NASA - INNOVATIONS BY COMMERCIAL FIRMS IN THE U.S.
Abstract:
THE EFFECTS OF SEVERAL ORGANIZATIONAL AND TECHNO-ECONOMIC FACTORS WHICH TEND TO FACILITATE AND/OR INHIBIT THE SUCCESSFUL TRANSFER AND COMMERCIAL UTILIZATION OF TECHNOLOGY GENERATED OUTSIDE THE ORGANIZATIONAL SETTING OF A POTENTIAL INDUSTRIAL USER ARE REPORTED ON. THE ESSENTIAL DIFFERENCE BETWEEN THE TWO TRADITIONS OF RESEARCH-TECHNOLOGY TRANSFER AND THE DIFFUSION OF INNOVATIONS - IS THAT TECHNOLOGY TRANSFER STUDIES HAVE TENDED TO EMPHASIZE THE POINT-TO-POINT TRANSFER MECHANISM WHEREAS THE DIFFUSION LITERATURE HAS DEALT WITH THE PATTERN OF SPREADING AN ITEM OVER TIME. THE TRANSFER OF TECHNOLOGY BETWEEN DIFFERENT INSTITUTIONAL SETTINGS, SUCH AS BETWEEN NASA AND VARIOUS POTENTIAL COMMERCIAL USERS IS THE SPECIFIC SUBJECT OF THE RESEARCH REPORTED HERE.