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

1. Joe Tidd John Bessant Keith Pavit Second Edition(2001), John Wiley & Sons Ltd. “Managing Innovation: Integrating Technological, Market and Organizational Change” Chapter 5: “Paths: Exploiting Technological Trajectories” Students: Carlos Neves Rui Carvalho

2. Technological Trajectory Not an option Technological Knowledge Firms Path Future Now • Firms Competence • Incremental Learning • Path dependant • Knowledge accumulated thr. experience Not an option

3. 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! Technological Trajectories (Sectors and Firms) DANGER: All firms and sectors are different = no generalization! Generalize based on one firm = misleading conclusions!

4. Pavvits’ Taxonomy • Five 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

6. 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.

7. Revolutionary Technologies – Advanced Materials • Materials for information and communication, for aerospace, for ground transportation and energy utilization; advanced metals, polymers and ceramics.

8. 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.

9. Developing Firms-specific Competencies Hamel 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).

10. TREE METAPHOR END PRODUCTS BUSINESS UNITS CORE PRODUCTS CORE COMPETENCIES

11. Japanese Automobile Companies Heavyweight 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

12. Intangible assets (intellectual property rights and reputation) Most significant are: company reputation and employee know-how, which may be a function of organizational culture (values and beliefs) Core competencies Intangible competencies (skills and know-how of employees, suppliers and distributors, and the collective attributes) Developing and Sustaining Competencies 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. Richard Hall Model

13. Learning About Opto-Eelctronics in Japanese Companies Kumiko 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.

14. Categories of Innovating Small Firms