Innovations
The importance of innovation
Corporations must be able to adapt and evolve if they wish to survive. Businesses operate with the knowledge that their competitors will inevitably come to the market with a product that changes the basis of competition. The ability to change and adapt is essential to survival.
Today, the idea of innovation is widely accepted. It has become part of our culture
– so much so that it verges on becoming a cliché. For example, in 1994 and 1995, 275 books published in the the United States had the word ‘innovation’ in their title (Coyne,
1996). But even though the term is now embedded in our language, to what extent do we fully understand the concept? Moreover, to what extent is this understanding shared? A scientist’s view of innovation may be very different from that of an accountant in the same organisation.
The GlaxoSmithKline story in Illustration 1.1 puts into context the subject of innovation and new product development. Innovation is at the heart of many companies’ activities. But to what extent is this true of all businesses? And why are some businesses more innovative than others? What is meant by innovation? And can it be managed? These are questions that will be addressed in this book.
‘. . . not to innovate is to die’ wrote Christopher Freeman (1982) in his famous study of the economics of innovation. Certainly companies that have established themselves as technical and market leaders have shown an ability to develop successful new products. In virtually every industry from aerospace to pharmaceuticals and from motor cars to computers, the dominant companies have demonstrated an ability to innovate (see
Table 1.1).
A brief analysis of economic history, especially in the United Kingdom, will show that industrial technological innovation has led to substantial economic benefits for the innovating companyand the innovating country. Indeed, the industrial revolution of the nineteenth century was fuelled by
Corporations must be able to adapt and evolve if they wish to survive. Businesses operate with the knowledge that their competitors will inevitably come to the market with a product that changes the basis of competition. The ability to change and adapt is essential to survival.
Today, the idea of innovation is widely accepted. It has become part of our culture
– so much so that it verges on becoming a cliché. For example, in 1994 and 1995, 275 books published in the the United States had the word ‘innovation’ in their title (Coyne,
1996). But even though the term is now embedded in our language, to what extent do we fully understand the concept? Moreover, to what extent is this understanding shared? A scientist’s view of innovation may be very different from that of an accountant in the same organisation.
The GlaxoSmithKline story in Illustration 1.1 puts into context the subject of innovation and new product development. Innovation is at the heart of many companies’ activities. But to what extent is this true of all businesses? And why are some businesses more innovative than others? What is meant by innovation? And can it be managed? These are questions that will be addressed in this book.
‘. . . not to innovate is to die’ wrote Christopher Freeman (1982) in his famous study of the economics of innovation. Certainly companies that have established themselves as technical and market leaders have shown an ability to develop successful new products. In virtually every industry from aerospace to pharmaceuticals and from motor cars to computers, the dominant companies have demonstrated an ability to innovate (see
Table 1.1).
A brief analysis of economic history, especially in the United Kingdom, will show that industrial technological innovation has led to substantial economic benefits for the innovating companyand the innovating country. Indeed, the industrial revolution of the nineteenth century was fuelled by