Joe Tidd John Bessant Keith Pavit Second Edition(2001), John Wiley & Sons Ltd

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Master in Engineering Policy and Management of Technology, 8 th Edition Science, Technology and Innovation Policy

EXPLOITING TECHNOLOGICAL TRAJECTORIES

Joe TiddJohn Bessant

Keith Pavit

Second Edition(2001), John Wiley & Sons Ltd.

““Managing Innovation: Integrating Technological, Managing Innovation: Integrating Technological, Market and Organizational Change”Market and Organizational Change”

Chapter 5: “Paths: Exploiting Technological Chapter 5: “Paths: Exploiting Technological Trajectories” Trajectories”

Students: Carlos Neves

Rui Carvalho

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Technological Trajectory

Technological Knowledge

Firms Competence

-Incremental Learning

-Path dependant

-Knowledge accumulated thr. experience

Now Future

Not an optio

n

Firms Path

Not an option

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Innovating Firms – Characteristics Innovating Firms – Characteristics

-Size: Big or Small

-Type of product: price sensitive vs performance sensitive

-Objectives: product or process

-Sources: Suppliers, customers, in-house & basic research

-Locus: labs, design offices, production engineering

Sectoral Differences!Sectoral Differences!

Technological Trajectories (Sectors and Firms)Technological Trajectories (Sectors and Firms)

DANGER: All firms and sectors are different = no generalization!

Generalize based on one firm = misleading conclusions!

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Pavvits’ TaxonomyPavvits’ TaxonomyFive Major Technological Trajectories (Sectors)

-Supplier Dominated

-Scale Intensive Firms

-Science Based

-Information Intensive

-Specialized Suppliers

What differs in each trajectory…

… sources of technology

… innovation strategy

… typical core products

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Domíniodo fornecedor

Escala--intensivas

Suportadasna ciência

Informação-intensivas

Fornecedores especializados

Produtos chave típicos

• Agricultura• Serviços• Produção Tradicional

• Matérias primas• Bens de consumo duradouros• Automóvel• Engenharia Civil

• Electrónica• Química

• Finanças• Retalho• Edição• Viagens

• Equipamento• Instrumentação• Software

Principais fontes de tecnologia

• Fornecedores• Aprendizagem de produção

• Engenharia de produção• Aprendizagem de produção• Fornecedores• Gabinetes de Design

• I&D• Investigação fundamental

• Departamentode software esistemas• Fornecedores

• Concepção• Utilizadores avançados

Principais tarefas da estratégia de inovação

1. Posição 1. Baseada emvantagens nãotecnológicas

1. Eficácia do custo e segurança dos produtos e processos complexos

1. Desenvolv. técnico de produtos relacionados

1. Novos produtos e serviços

1. Monitorização e resposta às necessidades dos clientes

2. Trajectória 2 .Utilização das Tl nas finanças e na distribuição

2. Integração incremental do novo conhecimento (ex, protótipos virtuais, novos materiais)

2. Exploração da ciência básica (ex. biologia molecular)

2. Concepção e operação de sistemas complexos de processamento de informação

2.Compatibilizacao das mudanças tecnológicas às necessidades dos clientes

3. Processos 3. Flexibilidade de resposta aos clientes

3. Divulgação das melhores praticas de concepção, produção e distribuição

3. Obtenção deacções complementares. Redefinição de fronteiras das divisões

3. Adequar as oportunidades baseadas nas Tl com necessidades dos clientes

3. Fortes elos de ligação com os clientes avançados

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Revolutionary Technologies - Biotechnology

•Biology•Biochemistry•Genetics•Microbiology•Biochemical engineering and separation processing•Discovery of the structure of the DNA•R&D programmes of companies in the pharmaceutical and

agro-food sectors•Food processing, drinks and detergents•Textiles, leather, paper and pulp, oil refining, metals and

mining, printing, environmental services, and speciality

chemicals.

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Revolutionary Technologies – Advanced Materials

•Materials for information and communication, for

aerospace, for ground transportation and energy

utilization; advanced metals, polymers and

ceramics.

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Revolutionary Technologies – Information Technology

•Microelectronics revolution, software technology,

Internet.

Three features of the IT revolution:

1- Digitalisation and interconnection of previously

separate activities: home electronics, logistics, sales

and distribution in retailing, management information

systems;

2- Decreasing cost of product development through the

use of simulations and virtual prototypes;

3- Growing importance of software technology in

distribution activities.

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Developing Firms-specific CompetenciesHamel and Prahalad on Competencies

1-The sustainable competitive advantage of firms resides not in their product but in their core

competencies;

2-They use the metaphor of the tree;

3-Associated organizational competencies;

4-Core competencies require focus;

5-Not only as a collection of strategic business units, but as bundles of competencies that

don’t necessarily fit tidily in one business unit;

6-The development of a firm’s competencies depend on its strategy architecture; example of

core competencies of Canon (1950-precision mechanics, 1964-electronic calculator; 1965-

electrofax copier; 1968-paper copier technology; fine optics and microelectronics).

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END PRODUCTS

CORE PRODUCTS

BUSINESS UNITS

CORE COMPETENCIES

TREE METAPHOR

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Japanese Automobile CompaniesHeavyweight Product Managers and Fat Product Designs

Overlaping problem solving among the engineering and manufacturing functions, leading to shorter model changes cycle;

Small teams with broad task assignments, leading to high development productivity and shorter lead times;

Using a heavyweight product manager with extensive project influence;

In 1990’s these features has been emulated by US automobile companies, and the gap had disappeared;

Another reason for the lost of the Japanese competitive edge – “fat products designs”, an excess in product variety, speed of model change and unnecessary options

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Technological competencies bypasses two central tasks of corporate

technology strategy:

1 – identifying and developing the range of disciplines or fields that must be combined

into a functioning technology;

2 – identifying and explore the new competencies that must be added if the functional

capability isn’t to become obsolete.

Developing and Sustaining Competencies

Richard Hall Model

Co

re c

om

pet

enci

es Intangible assets(intellectual property rights and reputation)

Intangible competencies (skills and know-how of employees, suppliers and distributors, and the collective attributes)

Most significant are:company reputation andemployee know-how, which may be a function of organizational culture (values and beliefs)

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Learning About Opto-Eelctronics in Japanese CompaniesKumiko Miyazaki

Tracing the development and exploitation of opto-electronics technologies in

Japanese firms;

By examining the types of papers related to semiconductors lasers over a 13

years period, it was found that in most firms there was a decrease in experimental

type papers accompanied by a rise in papers marking “new developments” or

“practical applications”;

The competence building is a cumulative and long process resulting from trial

and error and experimentation, which may eventually lead to fruitful outcomes;

Firms search over a broad range in basic and applied research and a narrower

range in technological development;

The early phases of competence building, firms explore a broad range of technical

possibilities, since they are not sure how the technology might be useful for them.

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EXPLOITING TECHNOLOGICAL TRAJECTORIESCategories of Innovating Small Firms

Superstars NTBF’s Specialized

Suppliers

Supplier-Dominated

Examples Polaroid, Xerox,

Microsoft, Compaq, Sony,

Casio, Benneton

Start-ups in electronics, biotechnology and software

Producer goods(machines, components, software)

Traditional products(textiles, wood, food) and many services

Sources of competitive advantage

Successful exploitation of major invention or technological trajectories

1.Product or process development in fast-moving and specialized area

2.Privatizing academic research

Combining technologies to meet users needs

Integration and adaptation of innovations by suppliers

Main tasks of

innovation strategy

Preparing replacements for original invention

1.Superstar or specialized supplier?

2.Knowledge or money

Links to advanced users and pervasive technologies

Exploiting new IT-based opportunities in design, distribution and coordination

Documents

Joe Tidd John Bessant Keith Pavit Second Edition(2001), John Wiley & Sons Ltd