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Melissa Schilling
Chapter 2
SOURCES OF INNOVATION
Sources of Innovation
Overview
Innovation can arise from many different sources and the linkages between them.
Sources of Innovation
Creativity
Creativity: The ability to produce work that is useful and novel. Individual creativity is a function of:
Intellectual abilities (e.g., ability to articulate ideas) Knowledge (e.g., understand field, but not wed to paradigms) Style of thinking (e.g., choose to think in novel ways) Personality (e.g., confidence in own capabilities) Motivation (e.g., rely on intrinsic motivation) Environment (e.g., support and rewards for creative ideas) Risk taker (e.g., willingness to take reasonable risks) Persistence (e.g., tolerate ambiguity and willingness to overcome obstacles)
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Creativity
Organizational Creativity is a function of:
Creativity of individuals within the organization Social processes and contextual factors that shape how those individuals interact and behave
Creativity training programs Culture that encourages (but doesnt directly pay for) creativity.
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Innovation is the implementation of creative ideas into some new device or process. Requires combining creativity with resources and expertise. Inventors
Such individuals may develop many new devices or processes but commercialize few.
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Sources of Innovation
Sources of Innovation
Advanced wheelchair that enables users to climb stairs, negotiate sand, rocks and curbs Incorporates a sophisticated balancing system Predecessor to Segway
Indermil a tissue adhesive based on Superglue. Managers tried to exploit Superglues tendency to bond to skin to develop an alternative to sutures for surgical applications.
Experiments in the 70s and 80s failed. A presentation by a reconstructive surgeon who had operated on burn victims in response to the Bradford football stadium fire of 1985 brought the project back to life. The doctors had used Superglue to repair skin and stick skin grafts in place. Years later, the patients had almost perfect skin repair The CEO gave his full support and serious funding. By 2003 the product was selling in 40 countries
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Theory In Action
The Birth of the Snowboarding Industry
First snowboards not developed by sports equipment manufacturers; rather they were developed by individuals seeking new ways of gliding over snow
Tom Sims made his first ski board in wood shop class. Sherman Poppen made a snurfer as a toy for his daughter later held snurfing contests Jake Burton added rubber straps to snurfer to act as bindings
By 2001 there were approximately 5.3 million snowboarders in the United States and the US market for snowboarding equipment had surpassed $235 million
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Sources of Innovation
Development refers to activities that apply knowledge to produce useful devices, materials, or processes. R&D thus refers to a range of activities that extend from early exploration of a domain to specific commercial implementations
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Science Push (50s and 60s) approach suggests that innovation proceeds linearly:
Scientific discovery inventionmanufacturing marketing Discoveries in basic science were the primary source of innovation which were then translated into commercial applications
Customer suggestions invention manufacturing Research staff would develop new products in efforts to respond to customer problems or suggestions
Demand Pull (mid 60s) approach argued that innovation originates with unmet customer need:
Most current research argues that innovation is not so simple, and may originate from a variety of sources and follow a variety of paths.
In-house R&D Linkages to customers or other potential users of innovations Linkages to external sources of scientific and technical info Linkages to competitors, suppliers and complementors
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Complementors are organizations that produce complementary goods such as DVD moves for DVD players
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Revenues from university inventions are still very small, but universities also contribute to innovation through publication of research results.
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Cluster of firms can attract other firms to area. Supplier and distributor markets grow to service the cluster. Cluster of firms may make local labor pool more valuable by giving them experience. Cluster can lead to infrastructure improvements (e.g., better roads, utilities, schools, etc.)
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May be a result of the national systems of research funding and the need to share complex technological expertise
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Knowledge Brokers
Hargadon and Sutton point out that some firms (or individuals) play a pivotal role in the innovation network that of knowledge brokers. Knowledge brokers are individuals or firms that transfer information from one domain to another in which it can be usefully applied.
They possess the ability to recognize and capture potential solutions that may be matched to problems in an unexpected way
Seek to exploit potential synergies of combining existing technologies
Robert Fulton saw steam engines used in mines and applied them to boats
By serving as a bridge between two separate groups of firms, brokers can find unique combinations of knowledge possessed by the two groups.
Thomas Edisons lab borrowed ideas from different industries to create innovations in telegraphs, telephones, phonographs, light bulbs and many others
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Discussion Questions
1. What are some of the advantages and disadvantages of a) individuals as innovators, b) firms as innovators, c) universities as innovators, d) government institutions as innovators, e) nonprofit organizations as innovators? 2. What traits appear to make individuals most creative? Are these the same traits that lead to successful inventions? 3. Could firms identify people with greater capacity for creativity or inventiveness in their hiring procedures? 4. To what degree do you think the creativity of the firm is a function of the creativity of individuals, versus the structure, routines, incentives, and culture of the firm? Can you give an example of a firm that does a particularly good job at nurturing and leveraging the creativity of its individuals?
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