MODELSOFINNOVATIONEMORETHANR&DTechnischeUniversiteitTUEindhoveneUniversity of Technology9/5/2013PAGE5EconomicsofInnovation2013
MODELS OF INNOVATION: MORE THAN R&D Economics of Innovation 2013 9/5/2013 PAGE 5
Terminology"Innovation" in daily lifeTerminology:-Google:"lnnovation"(406.000.000hits),"lnvention"(120.000.000hits),"Diffusion"(131.000.000hits).In contrastto commonlanguage:-WebsterDictionary("lntroductionofsomething new;new ideas,method or device")Britannica:"Somesocial changesareresultofinnovation"Differentdisciplines:Economics,Sociology,Law,Management (Strategic and Innovation Management)Technische UniversiteitTUEindhovenUniversityofTechnology9/5/2013PAGE6EconomicsofInnovation2013
Terminology "Innovation” in daily life • Terminology: − Google: "Innovation" (406.000.000 hits), "Invention" (120.000.000 hits), "Diffusion" (131.000.000 hits) • In contrast to common language: − Webster Dictionary (“Introduction of something new; new ideas, method or device") − Britannica: "Some social changes are result of innovation" − Different disciplines: Economics, Sociology, Law, Management (Strategic and Innovation Management) Economics of Innovation 2013 9/5/2013 PAGE 6
Schumpeter's definition ofinnovationDefinition:“Carryingout of new combinationsIntroduction ofanewgoodIntroductionofanewmethodofproductionOpeningofanewmarketOpeningofanewsourceofsupplyCarrying out of new organization of industry,likethe creationor breach of monopolyDefiningthe stagesoftechnological change:Invention(Generationofnewideas)Innovation(Developmentofnewideasintomarketableproductsandprocesses)Diffusion(Newproductsandprocessesspreadacrossthepotential market)TechnischeUniversiteitTUEindhovenUniversityof Technology9/5/2013EconomicsofInnovation2013
Schumpeter’s definition of innovation • Definition: “Carrying out of new combinations − Introduction of a new good − Introduction of a new method of production − Opening of a new market − Opening of a new source of supply − Carrying out of new organization of industry, like the creation or breach of monopoly • Defining the stages of technological change: − Invention (Generation of new ideas) − Innovation (Development of new ideas into marketable products and processes) − Diffusion (New products and processes spread across the potential market) Economics of Innovation 2013 9/5/2013 7
Linearmodel ofinnovationDesignResearchandandInventionInnovationDevelopmentCreativityCommercializationldeaGenerationTechnischeUniversiteitTUEindhovenJUniversityof Technology9/5/20138EconomicsofInnovation2013
Linear model of innovation 9/5/2013 8 Research and Creativity Invention Design and Development Innovation Idea Generation Commercialization Economics of Innovation 2013
Linearmodel ofinnovationFrombasicresearchandcreativity>inventiongoesfrom stageof idea generationtostage ofcommercializationStageof commercializationincludesdesignstageCommercializationmeansinnovationisinthemarket"TechnischeUniversiteitTUEindhoveneUniversityofTechnology9/5/2013PAGE9EconomicsofInnovation2013
Linear model of innovation • From basic research and creativity > invention goes from stage of idea generation to stage of commercialization • Stage of commercialization includes design stage • Commercialization means innovation is “in the market” Economics of Innovation 2013 9/5/2013 PAGE 9