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Questions and Answers
What are the different types of innovation?
What are the different types of innovation?
Product or service innovation, Process innovation, and Business model innovation
Why is innovation risky?
Why is innovation risky?
What is the significance of R&D in innovation?
What is the significance of R&D in innovation?
R&D is a source of innovation and has huge economic and societal importance.
Most basic research is funded by government.
Most basic research is funded by government.
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What is the principal-agent problem in innovation?
What is the principal-agent problem in innovation?
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What was the problem with the Vasa warship?
What was the problem with the Vasa warship?
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What is the importance of open communication in innovation projects?
What is the importance of open communication in innovation projects?
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What is innovation, and what is its impact on firms and society?
What is innovation, and what is its impact on firms and society?
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What are the three big questions for this lecture series?
What are the three big questions for this lecture series?
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According to the European Commission, what percentage of labor productivity growth in high-income countries is attributed to investments in innovation?
According to the European Commission, what percentage of labor productivity growth in high-income countries is attributed to investments in innovation?
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Innovation has replaced price as the determining factor in certain industries. Is this statement true or false?
Innovation has replaced price as the determining factor in certain industries. Is this statement true or false?
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Innovation is the adoption of ideas that are new to the _______ organization.
Innovation is the adoption of ideas that are new to the _______ organization.
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Match the marketing solutions with their corresponding needs:
Match the marketing solutions with their corresponding needs:
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What did Thomas Edison famously say constituted '99% perspiration' in innovation?
What did Thomas Edison famously say constituted '99% perspiration' in innovation?
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Study Notes
Introduction to Technology and Innovation Management
- The module will explore the general outline of the class, definitions of innovation, and why innovation management matters.
Innovation: Progress and Profits
- Innovation is the main driver of growth for modern economies, accounting for 60-70% of labor productivity growth in high-income countries.
- The European Commission estimates that innovation performance is linked to higher employment rates.
Innovation: Creative Destruction
- Joseph Schumpeter's concept of creative destruction describes how innovation leads to the destruction of old industries and the creation of new ones.
Innovation: Competitiveness and Growth
- Virtually all economic growth since the 18th century is attributable to innovation.
- Under capitalism, innovation has replaced price as the primary driver of competition in many industries.
Why Innovation Matters
- Innovation is linked tightly to capitalism, and its impact is felt in people's daily lives.
- The history of innovation is marked by significant changes in the way goods are produced and consumed.
Examples of Innovation
- Prozac, a successful antidepressant, generated $21 billion in revenue for Eli Lilly between 1988 and 2001.
- Iridium, a satellite phone project, resulted in $6 billion in losses for Motorola.
Challenges of Innovation
- Not all inventions become innovations, and innovation is a complex process that requires more than just technical expertise.
- The best innovations are often "low-tech" and may not be obvious.
Definitions of Innovation
- Innovation is a qualitatively new product or process that differs significantly from what existed before.
- Innovation management involves creating and exploiting new ideas.
The Innovation Process
- The innovation process involves idea generation, discovery, research, development, invention, marketing, and exploitation.
- The process is complex and may involve multiple actors and feedback loops.
Types of Innovation
- There are different types of innovation, including product, process, and business model innovation.
- Each type of innovation has its own challenges and requires different skills and approaches.
The Importance of R&D
- Research and development (R&D) are critical sources of innovation, with over $1.1 trillion spent in OECD countries in 2012.
- R&D is concentrated in large firms, and small firms' R&D activities are often poorly measured.
Challenges of Managing Innovation
- Principal-agent problems, where employees or contractors may not share the same goals as the organization, can hinder innovation.
- Organizational problems, such as the Vasa shipbuilding disaster, can lead to project failures.
- Interface problems, where communication breaks down, can also lead to project failures.
Wrap-up
- Innovation is both an output and a process that requires careful management.
- Innovation has a significant impact on firms and society, but it is also risky and difficult to manage.
- R&D is an essential driver of innovation, but it is not the only source of innovation, and different sectors have different approaches to innovation.
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Description
Introduction to Technology and Innovation Management course at Technische Universität München, covering the general outline and overview of the class.
