Chain-linkedModel (Kline &Rosenberg)KnowledoePotentialDesign/DistributelInvent/Redesign/analvticsmarkettestproducemarketdesignTechnische UniversiteitTUEindhoveneUniversity of Technology9/5/2013PAGE10EconomicsofInnovation2013
Chain-linked Model (Kline & Rosenberg) Economics of Innovation 2013 9/5/2013 PAGE 10
ExtensionofinnovationmodelInnovation:MorecomplexphenomenonMoredetailedstagesininnovationprocess(research,potentialmarket,invention,design/testing,redesiging,distribution/market)KnowledgeflowswithinthefirmInteractioneffectsandfeedbackloopsbetweendifferent stages of innovation chainInnovationcapabilityatallstagesofinnovation>researchjustonestageTechnische UniversiteitTUEindhoven-UniversityofTechnology119/5/2013EconomicsofInnovation2013
Extension of innovation model • Innovation: More complex phenomenon • More detailed stages in innovation process (research, potential market, invention, design/testing, redesiging, distribution/market) • Knowledge flows within the firm • Interaction effects and feedback loops between different stages of innovation chain • Innovation capability at all stages of innovation > research just one stage 9/5/2013 Economics of Innovation 2013 11
Stagesin innovation process1.2.WhatIsInnovation?External orMarket-levelfirm-levelAgentsprocessinitiativesFirm-level initiativesApplied research,AdoptionorBasicinformationDevelopmentActivitiesInvestmentpurchase decisioncollationresearchtestingInventions,Prototypes,Discoveries,MarketpenetrationInnovationOutputsblueprints,beta versionsideas(productorplansprocess)AdaptationimprovementResearchanddevelopmentCommercializationStageDiffusion2Figure 1.l.The stages of the innovation processTechnischeUniversiteitTUEindhoveneUniversity of Technology9/5/2013PAGE12EconomicsofInnovation2013
Stages in innovation process Economics of Innovation 2013 9/5/2013 PAGE 12
ConsequencesR&Dimportant stageininnovation process,butthere aremore stagesInnovation literatureaboutlinkingthesestagesExample:ChineseInnovation(Nie)·Speed of introduction of mobile phones>2o07TianyuChinese phone manufacturerover 1oo new modelsSupercomputingin2001noChineseinTop500,today61arelocatedinChinaAllbasedonlackofbasicR&D!HowtomeasureinnovationifnotjustR&D?Technische UniversiteitTUEindhovenUniversityofTechnology9/5/2013PAGE13EconomicsofInnovation2013
Consequences • R&D important stage in innovation process, but there are more stages • Innovation literature about linking these stages • Example: Chinese Innovation (Nie) • Speed of introduction of mobile phones > 2007 Tianyu Chinese phone manufacturer over 100 new models • Supercomputing in 2001 no Chinese in Top 500, today 61 are located in China • All based on lack of basic R&D! • How to measure innovation if not just R&D? Economics of Innovation 2013 9/5/2013 PAGE 13
Productinnovation,process innovation,incrementalandradicalinnovationFORMSOFINNOVATIONTechnischeUniversiteitTUEindhoveneUniversityofTechnology9/5/2013PAGE14EconomicsofInnovation2013
FORMS OF INNOVATION Product innovation, process innovation, incremental and radical innovation Economics of Innovation 2013 9/5/2013 PAGE 14