Cover......Page 1
Title Page......Page 4
Copyright Page......Page 5
Contents......Page 6
Preface......Page 20
Acknowledgements......Page 24
Plan of the book......Page 30
Part One Innovation management......Page 32
1 Innovation management: an introduction......Page 33
The importance of innovation......Page 35
The study of innovation......Page 38
Two traditions of innovation studies: Europe and the USA......Page 40
Recent and contemporary studies......Page 41
The need to view innovation in an organisational context......Page 42
Problems of definition and vocabulary......Page 43
Design......Page 44
Innovation and invention......Page 46
Successful and unsuccessful innovations......Page 47
Different types of innovation......Page 48
Technology and science......Page 49
Popular views of innovation......Page 51
Serendipity......Page 52
Linear models......Page 53
Simultaneous coupling model......Page 54
Interactive model......Page 55
Innovation life cycle and dominant designs......Page 56
Open innovation and the need to share and exchange knowledge (network models)......Page 57
Doing, using and interacting (DUI) mode of innovation......Page 58
Discontinuous innovation - step changes......Page 59
A framework for the management of innovation......Page 61
New skills......Page 64
Innovation and new product development......Page 65
Case study: Has the Apple innovation machine stalled?......Page 66
Chapter summary......Page 72
References......Page 73
Further reading......Page 77
2 National systems of innovation and entrepreneurship......Page 79
Innovation in its wider context......Page 81
Why firms depend on the state for so much......Page 83
How national states can facilitate innovation......Page 84
Fostering innovation in the United States and Japan......Page 87
Triple Helix of university-industry-government relationships that drives innovation......Page 88
Waves of innovation and growth: historical overview......Page 90
Fostering innovation in 'late-industrialising' countries......Page 93
Innovation within the 28 European Union states......Page 94
Improving the innovation performance of the EU......Page 96
Entrepreneurship......Page 99
Entrepreneurship and innovation......Page 100
Defining entrepreneurship......Page 102
Technological entrepreneurship: a question of context......Page 104
Small and medium-sized enterprise......Page 105
Innovation policy......Page 106
Case study: Pizza delivery with unmanned drones......Page 107
Discussion questions......Page 112
References......Page 113
Further reading......Page 116
3 Market adoption and technology diffusion......Page 117
Innovation and the market......Page 119
Innovative new products and consumption patterns......Page 120
Marketing insights to facilitate innovation......Page 122
Lead users......Page 124
Crowdsourcing for new product ideas......Page 126
Frugal innovation and ideas from everywhere......Page 128
Innovation diffusion theories......Page 129
Beacon products......Page 131
Adopting new products and embracing change......Page 133
Case study: How three students built a business that could affect world trade......Page 135
Chapter summary......Page 141
References......Page 142
Further reading......Page 144
4 Managing innovation within firms......Page 147
The dilemma of innovation management......Page 149
Innovation dilemma in low technology sectors......Page 150
Managing uncertainty......Page 151
Pearson's uncertainty map......Page 152
Applying the uncertainty map in practice......Page 154
Managing innovation projects......Page 155
Organisational characteristics that facilitate the innovation process......Page 157
Growth orientation......Page 160
Commitment to technology and R&D intensity......Page 161
Space for creativity......Page 162
Diverse range of skills......Page 163
Industrial firms are different: a classification......Page 164
Organisational structures and innovation......Page 166
Complexity......Page 167
The role of the individual in the innovation process......Page 168
IT systems and their impact on innovation......Page 169
Innovation management tools and techniques......Page 172
Innovation audit......Page 175
Case study: Gore-Texยฎ and W.L. Gore & Associates: an innovative company and a contemporary culture......Page 176
Chapter summary......Page 180
References......Page 181
Further reading......Page 184
5 Operations and process innovation......Page 185
Operations management......Page 187
The nature of design and innovation in the context of operations......Page 188
Design requirements......Page 189
Design and volumes......Page 191
Craft-based products......Page 193
Reverse engineering......Page 194
Process design......Page 195
Process design and innovation......Page 197
Stretch: how innovation continues once investment is made......Page 199
Innovation in the management of the operations process......Page 200
Triggers for innovation......Page 201
Design of the organisation and its suppliers: supply chain management......Page 206
Business process re-engineering (BPR)......Page 209
Lean innovation......Page 210
Case study: Innovation on the production line......Page 211
Discussion questions......Page 215
References......Page 216
Further reading......Page 217
6 Managing intellectual property......Page 219
Intellectual property......Page 221
An introduction to patents......Page 224
Industrial applications......Page 226
The patenting of life......Page 227
Patent harmonisation: first to file and first to invent......Page 229
Some famous patent cases......Page 230
Patents in practice......Page 231
Expiry of a patent and patent extensions......Page 232
Patent extensions......Page 233
Patent trolls......Page 234
Do patents hinder or encourage innovation?......Page 235
Alternatives to patenting......Page 236
Trademarks......Page 238
Satisfy the requirements of section 1(1)......Page 239
Not be deceptive......Page 240
Using brands to protect intellectual property......Page 241
Exploiting new opportunities......Page 242
Duration of registration, infringement and passing off......Page 243
Registered designs......Page 244
Copyright......Page 245
Counterfeit goods and IP......Page 247
Case study: Pricing, patents and profits in the pharmaceutical industry......Page 249
Chapter summary......Page 252
References......Page 253
Further reading......Page 255
Part Two Turning technology into business......Page 256
7 Managing organisational knowledge......Page 257
The Battle of Trafalgar......Page 259
Technology trajectories......Page 260
The resource-based perspective......Page 261
Dynamic competence-based theory of the firm......Page 262
Developing firm-specific competencies......Page 264
Competencies and profits......Page 265
Technology development and effort required......Page 266
The knowledge base of an organisation......Page 267
Organisational heritage......Page 268
When the performance of the organisation is greater than the abilities of individuals......Page 269
Characterising the knowledge base of the organisation......Page 270
The learning organisation......Page 272
Innovation, competition and further innovation......Page 273
How firms cope with radical and incremental innovation......Page 275
Developing innovation strategies......Page 279
Leader/offensive......Page 280
Market segmentation specialist/traditional......Page 281
Case study: The cork industry, the wine industry and the need for closure......Page 282
Key words and phrases......Page 291
References......Page 292
Further reading......Page 293
8 Strategic alliances and networks......Page 295
Defining strategic alliances......Page 297
The fall of the go-it-alone strategy and the rise of the octopus strategy......Page 299
Complementary capabilities and embedded technologies......Page 300
Interfirm knowledge-sharing routines......Page 301
Licensing......Page 302
Outsourcing......Page 303
R&D consortia......Page 304
Industry clusters......Page 305
Innovation networks......Page 306
The 'virtual company'......Page 309
The process of forming a successful strategic alliance......Page 310
Negotiating a licensing deal......Page 311
Consideration (monetary value)......Page 312
Termination......Page 313
Risks and limitations with strategic alliances......Page 314
The role of trust in strategic alliances......Page 315
The concept of trust......Page 316
Innovation risks in strategic outsourcing......Page 317
The use of game theory to analyse strategic alliances......Page 320
Game theory and the prisoner's dilemma......Page 321
Case study: And the winner is Sony's Blu-ray - the high-definition DVD format war......Page 323
Key words and phrases......Page 330
References......Page 331
Further reading......Page 333
9 Management of research and development......Page 335
What is research and development?......Page 337
R&D management and the industrial context......Page 338
R&D investment and company success......Page 341
Classifying R&D......Page 344
The operations that make up R&D......Page 346
R&D management and its link with business strategy......Page 348
Integration of R&D......Page 349
Strategic pressures on R&D......Page 350
The technology portfolio......Page 351
Which business to support and how?......Page 353
Technology leverage and R&D strategies......Page 355
Allocation of funds to R&D......Page 357
Setting the R&D budget......Page 358
Level of R&D expenditure......Page 360
Case study: The long and difficult 13-year journey to the marketplace for Pfizer's Viagra......Page 361
Discussion questions......Page 368
References......Page 369
Further reading......Page 370
10 Managing R&D projects......Page 373
Successful technology management......Page 375
The changing nature of R&D management......Page 377
Organising industrial R&D......Page 380
The acquisition of external technology......Page 381
Level of control of technology required......Page 382
Forms of external R&D......Page 383
Managing scientific freedom......Page 386
Skunk works......Page 390
The link with the product innovation process......Page 391
The effect of R&D investment on products......Page 393
Evaluation criteria......Page 394
Case study: CSI and genetic fingerprinting......Page 399
Discussion questions......Page 405
References......Page 406
Further reading......Page 407
11 Open innovation and technology transfer......Page 409
Background......Page 411
The dominant economic perspective......Page 412
Open innovation......Page 413
Introduction to technology transfer......Page 415
Information transfer and knowledge transfer......Page 416
Licensing......Page 417
Science park model......Page 418
Ferret model......Page 419
European Space Agency (ESA)......Page 421
Limitations and barriers to technology transfer......Page 422
NIH syndrome......Page 423
Absorptive capacity: developing a receptive environment for technology transfer......Page 424
Linking external technology to internal capabilities......Page 426
Managing the inward transfer of technology......Page 427
Technology transfer and organisational learning......Page 428
Case study: How developments in electronic sensors create destruction in the disposable nappy industry......Page 429
Discussion questions......Page 434
References......Page 435
Further reading......Page 437
Part Three New product development......Page 440
12 Business models......Page 441
What is a business model?......Page 444
The business model and the business plan......Page 446
The range of business models......Page 447
The sixteen business model archetypes......Page 448
Revenue models......Page 451
Enterprise models......Page 452
The parts of the business model......Page 453
The customer side......Page 454
The finances......Page 455
The business model dilemma of technology shifts......Page 457
Recurring revenues......Page 459
Changing the cost structure......Page 460
The technology licence and business relationships......Page 461
The licensing business model......Page 462
Marketing issues related to the licensing model......Page 463
Costs and benefits of the licensing model......Page 464
Other strategic uses of licensing......Page 465
Case study: Developing a new product for the teeth whitening market......Page 466
Chapter summary......Page 472
References......Page 473
Further reading......Page 474
13 Product and brand strategy......Page 477
Capabilities, networks and platforms......Page 479
Product platforms......Page 480
Product planning......Page 482
Competitive strategy......Page 485
Product portfolios......Page 486
The competitive environment......Page 487
Differentiation......Page 488
Product positioning......Page 489
Competing with other products......Page 491
Brands and blind product tests......Page 493
Brand strategy......Page 495
Brand extensions......Page 496
Market entry......Page 499
Launch and continuing improvement......Page 501
Withdrawing products......Page 502
Managing mature products......Page 503
Case study: Umbrella wars: GustBusterยฎ and senzยฐ......Page 504
Discussion questions......Page 508
References......Page 509
Further reading......Page 510
14 New product development......Page 511
Innovation management and NPD......Page 513
New products and prosperity......Page 515
Ongoing corporate planning......Page 516
NPD as a strategy for growth......Page 517
Product development......Page 518
A range of product development opportunities......Page 519
What is a new product?......Page 521
Defining a new product......Page 523
Classification of new products......Page 525
Repositioning and brand extensions......Page 527
New product development as an industry innovation cycle......Page 528
Overview of NPD theories......Page 529
The fuzzy front end......Page 530
Customer cocreation of new products......Page 532
Agile NPD......Page 533
Departmental-stage models......Page 534
Cross-functional models (teams)......Page 536
Decision-stage models......Page 537
Network models......Page 538
Case study: Launching innocent into the growing fruit smoothie market......Page 539
Key words and phrases......Page 547
References......Page 548
Further reading......Page 550
15 New service innovation......Page 553
Growth in knowledge-intensive business services (KIBS)......Page 555
Outsourcing and service growth......Page 556
Different types of services......Page 559
New services and new business models......Page 561
Characteristics of services and how they differ from products......Page 562
Classification of service innovations......Page 563
The new service development process......Page 564
Sequential service development models or Stage-Gateยฎ models......Page 566
Concurrent service development models......Page 567
Consumer user toolkits......Page 569
Consumer testing of services......Page 571
Case study: Developing new services at eBay......Page 572
References......Page 579
Further reading......Page 582
16 Market research and its influence on new product development......Page 583
Market research and new product development......Page 585
The purpose of new product testing......Page 586
Testing new products......Page 587
Concept tests......Page 588
Trade shows......Page 589
When market research has too much influence......Page 590
Discontinuous new products......Page 593
Market research and discontinuous new products......Page 594
Circumstances when market research may hinder the development of discontinuous new products......Page 595
Technology-intensive products......Page 596
Breaking with convention and winning new markets......Page 597
When it may be correct to ignore your customers......Page 601
Striking the balance between new technology and market research......Page 602
Using suppliers and lead users to improve product variety......Page 603
Case study: Dyson, Hoover and the bagless vacuum cleaner......Page 604
Discussion questions......Page 613
References......Page 614
Further reading......Page 615
17 Managing the new product development process......Page 617
New products as projects......Page 619
The Valley of Death......Page 620
The key activities that need to be managed......Page 621
Assembling knowledge......Page 623
The generation of business opportunities......Page 624
Developing product concepts: turning business opportunities into product concepts......Page 625
The screening of business opportunities......Page 626
Development of product prototypes......Page 628
Market testing and consumer research......Page 630
How virtual worlds can help real-world innovations......Page 631
Market introduction......Page 632
Organisational structures and cross-functional teams......Page 634
Functional structures......Page 635
Matrix structures......Page 636
Project management......Page 638
The marketing/R&D interface......Page 639
High attrition rate of new products......Page 640
Case study: An analysis of 3M, the innovation company......Page 643
Discussion questions......Page 648
References......Page 649
Further reading......Page 650
B......Page 652
C......Page 653
E......Page 655
G......Page 656
I......Page 657
K......Page 658
M......Page 659
N......Page 660
P......Page 661
R......Page 662
S......Page 663
T......Page 664
V......Page 665
Z......Page 666
