CHAPTER1

• Neo-classical economics


  A theory of economic growth that explains how savings, investments and growth respond to population growth and technological change
• Organisational architecture


  Its internal design, including its functions and the relationships it has built up with suppliers, competitors, customers, etc.
• The first in the USA was concerned with technological change as the use of inventions in industrial production
• The second in Europe was concerned more specifically with commercialised invention
• Entrepreneurship


  An individual who spots an opportunity and develops a business
• Economic Growth was the result of all technological progress
• Design


  The emergent arrangement of concrete details that embody a new idea
• Invention


  The process of converting intellectual thoughts into a tangible new artefact (usually a product or process)
• Innovation


  A process with a number of distinctive features that have to be managed
• Innovation as a management process also offers a distinction between an innovation and a product, the latter being the output of innovation
• Industrial innovation

  • Major (radical) innovations
  • Minor (incremental) technological advances
• Technological innovation can be accompanied by additional managerial and organisational changes, often referred to as innovations
• Science


  Systematic and formulated knowledge
• Technology


  Knowledge applied to products or production processes
• Serendipity


  Accidentally uncovering a major new invention leading to fame and fortune
• Linear model


  A direct, one-way relationship between two or more variables where changes in one variable result in proportional changes in another variable, following a straight line pattern
• Simultaneous Coupling Model


  Innovations are stimulated by a host of factors, including technology, customer need, manufacturing, and competition
• Architectural knowledge


  Divides technological knowledge along two new dimensions: knowledge of the components and knowledge of the linkage between them
• The radical/incremental dimension suggests that incumbents will be in a better position if the innovation is incremental, since they can use existing knowledge and resources to leverage the whole process
• Interactive model


  Emphasises that innovations occur as the result of the interaction of the marketplace, the science base and the organisation's capabilities
• Cyclic innovation model


  The result of a combination of analysis of theory and practical evidence, based on many years of experience within industries that work with scientists to develop valuable new products and services
• Disruptive innovation


  Innovations that were radical in nature reinforced the incumbent's position in a certain industry, contrary to what previous models
• Discontinuity


  Can also come about by reframing the way we think about an industry