Managing Technological Innovation: Competitive Advantage from Change, 3rd Edition

380 Pages·2011·3.47 MB·English

by  Frederick Betz

MANAGING
TECHNOLOGICAL
INNOVATION

MANAGING
TECHNOLOGICAL
INNOVATION
COMPETITIVE ADVANTAGE
FROM CHANGE
THIRD EDITION
FREDERICK BETZ

John Wiley & Sons, Inc.
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Library of Congress Cataloging-in-Publication Data:
Betz, Frederick, 1937–
Managing technological innovation : competitive advantage from change / Frederick Betz.—3rd ed.
p. cm.
Includes index.
ISBN 978-0-470-54782-3 (hardback); 9780-4-70-92756-4 (ebk.); 978-0-470-92757-1 (ebk.);
978-0-470-92758-8 (ebk.); 978-047-0-92759-5 (ebk.); 978-0-470-95154-5 (ebk.);
978-047-0-95171-2 (ebk.)
1. Technological innovations—Management. 2. Research, Industrial—Management. I. Title.
HD45.B443 2011
658.5'14—dc22
2010030985

Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
This book is dedicated to my wife, Nancy, and my
children, Sara, Fred, and David.

CONTENTS
Preface xi
I. TECHNOLOGY COMPETITIVENESS—
BUSINESS BASE OF INNOVATION
1 Technological Innovation 3
Timeline of Science, Technology, and Industrialization 4
Innovation Process 12
Technology and Wealth 17
Technical Savvy and Financial Savvy 20
Technical Personnel and Business Personnel 25
2 Innovation and Economy 27
Economic Scale of Innovations 29
Economic Long Waves 31
Measuring the Economic Impact of Technological Innovation in an Economy 37
Core Technologies of an Industry 41
Industrial Life Cycle 42

Industrial Standards and First Movers in a New Industry 44
Commodity Industry 48
3 Innovation and National Systems 51
Science Bases for Technology 54
Computer Technology 58
National Innovation System 60
Radical Innovation at the Macro and Micro-Levels 66
Radical Innovation and Next-Generation Product Lines 71
Circular Interactions in a National Innovation System 72
Performance of National Innovation Systems 75
vii
viii CONTENTS
4 Innovation Research 77
Logic of Research for Innovation 79
Logic of Radical Innovation—Technology Research 87
Logic of Radical Innovation—Engineering Research 89
Logic of Radical Innovation—Commercialization 91
Costs of Innovation 94
5 Innovation and Corporate R&D 97
Institutionalization of Scientifi c Technology 103
Objectives of Corporate Research 106
Planning Incremental Innovation 108
Two Cultures—Research Laboratory and Business Division 109
Evaluating Corporate R&D 112
6 Innovation and Markets 115
Business Model—Price and Value 118
Designing a Product for a Market 124
Completing High-Tech Products for Applications 127
Market Positioning 130
Proprietary Technology 132
Market Niches 134
7 Innovation and Product Development 137
Market-Pull or Technology-Push Innovation 139
Incremental Innovation in Product Development 142
Delays in a Product Development Process 145
Product Quality 152
8 Innovation and Strategy 153
Micro-level Innovation in a Business 156
Top-down and Bottom-up Strategy in Innovation 161
Top-level Innovation S trategy 164
Mid-level Innovation Strategy—New High-tech
Business Ventures 167
Lower Level of Innovation Strategy—Technical Programs 171
Bottom Level of Innovation Strategy—Technical Projects 172
II. TECHNOLOGY STRATEGY—
TECHNICAL BASE OF INNOVATION
9 Integrating Technology and Business Strategy 177
Industrial Value Chain 179
Technology Strategy 186