17

THE FACTORS THAT INFLUENCE

INNOVATION AND THE SUCCESS
OF INNOVATION
H3.1 analyses the factors that influence innovation and the success
of innovation

Students learn about:

• factors that impact on success of innovation including;
- timing, available and emerging technologies, historical and cultural, political, economic and legal
factors, marketing strategies
• the role of a variety of agencies that may impact upon the success of innovation
• entrepreneurial activity
- nature of entrepreneurial activity
- role in design and technological activity
- agencies which influence entrepreneurial activity
- management and entrepreneurial activity
• legal and ethical issues

Students learn to:

• differentiate between factors which have contributed to the success or failure of innovations
• describe the role of a variety of agencies that influence the development, implementation and acceptance
of innovation
• discuss the influence of entrepreneurial activity on successful design and innovation
• discuss the legal and ethical issues related to entrepreneurial activities
Source: Design and Technology Stage 6 Syllabus, © BOS NSW, 2010

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Design and innovation

To innovate means to introduce changes or new things. In Design and Technology, we think
of innovations as changes or improvements to product design and manufacturing. Innovative
designers are involved in the purposeful search for change and the creation of opportunities to
bring about that change in order to improve our quality of life.
Two hundred years ago, we lived in an agricultural environment, relying on land and labour.
During the industrial revolution of the 19th century, machines were developed to produce goods
and services on a large scale. Production was the key to economic success – the more that was
produced the more the economy grew. Technological development focused on the plant and
equipment needed for production.
Today, knowledge has replaced land, labour and finance as the most important resource for
economic development. The leading organisations of the future will be those that are able to gain
value from information, in other words, that can innovate.

Factors that contribute to success or failure

There are many factors which contribute to making an innovation successful. An innovative
design will not only be aesthetically pleasing but will also function better than its precursors and
bring benefits to the economy and culture into which it emerges.
Innovation is about taking new ideas or improvements successfully through to the market
place. It concerns predicting and satisfying customers’ needs and wants, leading to improvements
in people’s lives and increased prosperity and wellbeing.

Case study 17.1 The Dyson Airblade™

Figure 17.1 A Dyson AirbladeTM.

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The latest innovation from Dyson, the Dyson Airblade™, is about to revolutionise the way we
dry our hands. As with his previous designs, James Dyson has identified an everyday problem
and created a unique design solution. Conventional hand driers take up to 44 seconds to dry
hands and have the potential to spread harmful bacteria. The Airblade hand dryer works in just
10 seconds – scraping water from hands using a high powered digital motor designed by Dyson.
Air is forced through two continuous apertures the width of an eyelash – creating sheets of air
travelling at 400mph. It uses digital pulse technology – spinning 88 000 times a minute with the
potential to suck in 37 litres of washroom air every second. A HEPA filter purifies the air before
blowing it onto hands, so it’s also hygienic. And it uses up to 80% less energy than conventional
warm air hand dryers. It also eliminates the need for paper towels which generate landfill, are
expensive to restock and dispose of, and can be wasteful and create mess. It offers businesses and
public venues the opportunity to lower their running costs and provide a fast, hygienic method
of hand drying and reduce their carbon footprint at the same time.
Source: www.dysonairblade.co.uk/technology/

Available and emerging

technologies
When the reasons for the development of new products are
discussed, two terms are often used: ‘market pull’ and ‘technology
push’. The marketplace will often pull companies to produce
items that are demanded by the consumer. At the same time, the
development of new technologies enables new products to be
pushed into the marketplace. Usually there is a combination of
both. Often new technologies will enable a designer to improve
on an existing product that has already been accepted by the
marketplace.

Smart phones
A smart phone (such as an iPhone or Blackberry) is a mobile phone
with enhanced capabilities, offering many of the same features as
a small computer. Smart phones play video and audio files, take
photographs, access email and the internet, and offer a range
computer programs and applications such as GPS, games and
Figure 17.2 A smartphone.
ebook readers.

ACTIVITY 17.1

1. Describe how the features of a smart phone could be extended. What would you add?
2. Analyse the positive and negative impacts this technology may have on the individual,
society and the environment.

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Global Positioning System (GPS)

A Global Positioning System (GPS) uses a set of satellites to pinpoint your position. This
information is then interpreted on a digital street directory that shows exactly which road you
are on, and allows you to search and be directed to an address or landmark. Your progress is
made clear by a display that shows your location graphically. Once you have set your desired
destination, a GPS designed for cars will also give you verbal directions.

Figure 17.3 A GPS.

ACTIVITY 17.2

1. Discuss the impact the GPS might have on you and your family.
2. Research the GPS technology underlying this product.
3. Predict other ways the GPS technology could be used to improve people’s lives.

Technologies can be divided into three different categories – critical, enabling and strategic.
Critical technologies are those that are used to develop products. Enabling technologies are those
that are needed to make use of the critical technologies. Strategic technologies are emerging
technologies that are crucial to further development and new products – they become the critical
technologies of the future.
Industrial robots have been developed to improve manufacturing processes. Critical
technologies include sensors and electronics that form the control system. Enabling technologies
include drive motors and power control. Strategic technologies include development of artificial
intelligence for robots.

Timing
In addition to function and aesthetics, another factor that can impact on the success of
innovation is timing. The timing of when a product emerges can determine its success or failure.
Manufacturers and retailers may wish to stimulate demand for a new product, which they will do

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Figure 17.4 Robotic car manufacturing plant.

through effective marketing. Most fashion items – whether clothing or household goods – are
cleverly marketed to ensure a demand is created. At the other end of the scale, consumers may
create the demand for a product and this will often be in response to trends. Innovators respond
to consumer trends in order to ensure success. Many products are launched at particular times of
the year. Mother’s Day, Father’s Day and Christmas are peak marketing times

Historical and cultural factors

The innovator must consider the historical and cultural environment – the beliefs, values and
behaviours of the consumers who form the target market. Companies actively work with pressure
groups such as animal liberation activists, environmental groups, cultural leaders and religious
groups to ensure that their products are appropriate both socially and environmentally. Today,
consumers will not accept washing detergents that are not biodegradable as society is concerned
about the environmental impact of products.

Political factors
Governments can also influence the success or failure of innovation. The government plays a
significant role in trade agreements and policies. Wind farming as a source of renewable energy
has developed in Australia because the state and federal governments support sustainable living.
Likewise, government support (in the form of funding) is provided for the development of water
saving designs that respond to the environmental concerns of the time.

Economic factors
A growing economy can be good for designers of new products, as consumers are more willing
to spend money and try new ideas. At the same time, financially secure buyers expect quality
and sophistication in their products and will not accept goods that do not meet expectations.
A slowing economy may also affect innovation, as products must become more efficient.

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Legal factors
The governments of Australia legislate to protect the rights of workers and consumers. Labelling
laws are in place to ensure consumers are well informed. Industry must be aware of these laws
if their products are to be successful. The Australian Tax Office (ATO – collects revenue for the
Commonwealth Government), Trade Agreements (regulating the importing of resources or
offshore production) and the Australian Competition and Consumer Commission (ACCC –
which monitors the legality of trade) are three examples of government-led impacts on product
development. Standards Australia sets the standards for new and existing products. Innovators
must meet these standards.

Marketing strategies
A product’s marketing strategy (which includes the size of the market, the consumer demand and
the product promotion) can impact on the success of an innovation. Even the best product will
be hard to sell if no one knows about it. To be commercially successful, a product must satisfy
consumer demands. The marketing strategy explains how a business plans to market a product.
It involves evaluating the market environment, determining the demand, making decisions
about supply of the product and setting achievable goals. The elements of marketing are often
described as:
• People – potential customers
• Product – aesthetics, function and special features
• Price – setting the price at an appropriate level
• Promotion – advertising the product through a number of mediums including TV, radio,
magazine advertisements
• Packaging – providing information, protection and presentation of the product.
Each of these elements interacts with the others in the marketing strategy. To be successful,
a new product must stand out from its competitors. A good innovation will have unique selling
points.

ACTIVITY 17.3

Visit the CSIRO website at: www.csiro.gov.au. This organisation uses government funding to
research and develop new technologies. Explore the section titled ‘Research divisions’ and
select three innovations that interest you. For each innovation:
1. Describe the innovation.
2. Analyse the factors that impact on the success or failure of that innovation.
3. Evaluate the impact of that innovation on society and the environment.

Agencies that influence innovation

There are many agencies that impact on innovation. The innovator needs to be aware of those
that protect their designs, those that will provide assistance in the development of the innovation
and those that regulate design and production. Some of these were explained in the previous

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chapter and some more are explained below – there may be others that may impact on specific
innovations.

Standards Australia
Standards Australia is recognised for its role in maintaining standards and setting benchmarks for
industry, government and the Australian community. It is a non-government organisation that
operates with the support of government.
The Standards (published documents) are used to define the criteria to ensure products,
services and systems operate reliably and safely in the manner that is intended. If an innovation
meets these Standards, it is more likely to promote consumer confidence, global competitiveness
and also financial support from investors. Thus it is advantageous to innovators to ensure their
products meet the Australian Standards.

Standards are published documents setting out specifications and procedures

designed to ensure products, services and systems are safe, reliable and consistently
perform the way they were intended to. They establish a common language which
defines quality and safety criteria.
Source: www.standards.org.au/cat.asp?catid=2

Maintaining these Australian standards in the development of innovations

provides consumer confidence, assists in attracting investment and allows global
competitiveness – all key factors in the success of a new product.
Source: www.standards.org.au

IP Australia
It is important that designers protect their intellectual property. Inventions, trademarks,
original designs or practical applications of ideas all need to be legally protected, as intellectual
developments are often the edge which sets successful companies apart from their less innovative
competitors. Innovators go to IP Australia to protect their designs. There is a range of different
types of protection for intellectual property. They are listed by IP Australia as:
• patents for new or improved products or processes
• trademarks for letters, words, phrases, sounds, smells, shapes, logos, pictures, aspects of
packaging or a combination of these, to distinguish the goods and services of one trader from
those of another
• designs for the shape or appearance of manufactured goods
• copyright for original material in literary, artistic, dramatic or musical works, films, broadcasts,
multimedia and computer programs
• circuit layout rights for the three-dimensional configuration of electronic circuits in integrated
circuit products or layout designs
• plant breeder’s rights for new plant varieties, and
• confidentiality/trade secrets including know-how and other confidential or proprietary
information.
An innovator must take formal steps to obtain legal ownership of their idea by registering for
intellectual property protection. Through the Patents Office at IP Australia, innovators can apply
for a patent on their design. The Patents Office will decide whether or not the design meets the
legislative requirements. Registering with IP Australia does not provide international protection.
This needs to be done separately.

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The electrical powerboard is an example that demonstrates the need to apply for a patent.
The design team at Kambrook produced this innovation in 1971, but failed to patent the
powerboard concept. Today, Kambrook has to share the market for this highly successful product
with many other manufacturers.
See: www.ipaustralia.gov.au for more information on IP Australia.

Small Business Council (SBC)

In 2003, the Australian Government established this consultative body to advise on the broad
range of issues that impact on small businesses. The Small Business Council (SBC) offers advice to
government, identifies factors that impact on the growth and development of small businesses
and investigates possible solutions to problems associated with this sector. Other organisations
that support small businesses are the National Small Business Forum, the ACCC Small Business
Advisory Group, the Office of Small Business and the Commissioner of Taxation’s Small Business
Consultative Group and Small Business Advisory Group.
Through the Small Business Council and its website (www.smallbusiness.gov.au), innovators
can remain informed of current issues and changes as well as provide feedback to the
government. Some of the topics discussed in this forum include:
• reviews conducted by the Professional Standards Board for Patent and Trade Marks Attorneys
• information about government funding for research and development
• an action plan for Japanese Tourism, to help address the downturn in the Japanese tourism
market
• information about innovations coming onto the market, and
• information about relevant conferences, such as the Australian Energy User Conference.
Another government initiative to assist new businesses is the highly successful Business Entry
Point (BEP): www.business.gov.au.

Australian Competition and Consumer Commission

(ACCC)
The Australian Competition and Consumer Commission (ACCC) is an independent authority that
administers the Trade Practices Act 1974. It works to protect consumer and business rights while
also monitoring industry regulations, pricing and unauthorised anti-competitive behaviour.
Penalties are quite severe for those who do not abide by the Trade Practices Act, so it is
important that all designers are aware of its regulations.
The ACCC’s website can be found at: www.accc.gov.au.

Australian Securities and Investments Commission

(ASIC)
The Australian Securities and Investments Commission (ASIC) regulates financial services, ensuring
that trading is fair and ethical. An innovator can receive advice from ASIC about opening, running
and closing a company, as well as information about licensing and compliance. The wide range
of knowledge available through their website will be useful to all people in business. The site
provides information about managed investment schemes, scams, financial tips, markets, financial
reporting and publications, among other things.
ASIC’s website can be found at: www.asic.gov.au

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Australian Centre for Innovation and International

Competitiveness (ACIIC)
This group addresses a broad range of issues related to the development of effective strategies
and policies in science, technology and innovation in the public and private sectors. Their website
can be found at: www.aciic.org.au.

ACTIVITY 17.4

Go to the ACIIC website and spend 10 minutes exploring this site. Then answer the following
questions:
• What is the role of ACIIC?
• Explain why ACIIC believes innovation is important to our economy.
• Why would this agency be useful to an innovator?
• After reading about each of the following, write one or two sentences to explain the
meaning of each of the following concepts:
–– globalisation
–– knowledge economy
–– connectivity, and
–– futures.

Entrepreneurial influence on design and innovation

Entrepreneurial activity is concerned with the creation, evaluation and exploitation of ideas
– making good ideas into a commercial success. It involves recognising those ideas that have
potential for a successful commercial venture and the ability to take those ideas through
to creation of a successful product. There is a certain amount of risk-taking involved in
entrepreneurial activity, including an understanding of all the factors that can impact on the
success or failure of business and the ability to manage these factors into a position of advantage.
It is often stated that entrepreneurs create their own futures, rather than accepting the roles
determined by others. These people have particular personal characteristics that foster the process
of entrepreneurial activity. They are usually:
• passionate about their work
• problem solvers
• innovative in the use of technologies
• prepared to persevere
• risk-takers – fearless about changing direction
• visionary
• unorthodox
• willing to delegate
• good managers of finance, time and people
• creative

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• energetic
• optimistic, and
• ethical.
Here are some successful entrepreneurs. They possess many of the characteristics listed above.
• Craig Winkler – founder of the software company MYOB.
• Nabi Saleh and Peter Irvine – developers of the Gloria Jean’s franchise in Australia.
• Brian Dolling – inventor of a plastic wine stopper.
• Bruno Schiavi – creator of the pocket sock.
• Gary Gale – inventor of a knitted plastic shade fabric.

Legal and ethical issues

Entrepreneurs do not necessarily come up with their own ideas. However, they are good
at spotting opportunities. They usually have the abilities needed to make good ideas into
commercial successes. Thus they are important to the innovator and inventor. Most innovators
will need investment in order to follow through with their idea. The entrepreneur will have the
enthusiasm and skills needed to find investors and convince them of the potential of an idea.
They will also have the necessary knowledge of government regulations and legal requirements
relevant to starting a new business. They would ensure that the idea is legally protected and all
trading and production activities meet required standards.

ACTIVITY 17.5

Using the internet or by visiting your local entertainment store, explore a new entertainment
product that is compact and portable.
1. Describe the innovation and the associated technologies.
2. Using your knowledge of the factors that impact on innovation and entrepreneurial activity,
predict the success or failure of this product.
3. Discuss the legal and ethical issues related to the marketing of this product.

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Chapter summary

• Not all innovations become commercial successes. A number of factors can impact on
the success or failure of an innovation. These include timing, available and emerging
technologies, cultural, political, economic and legal factors, and marketing strategy
including market size, demand and product promotion.
• A variety of agencies can influence the development, implementation and acceptance
of innovation. These include Standards Australia, IP Australia, Small Business Australia,
the Australian Competition and Consumer Commission and the Australian Centre for
Innovation and International Competitiveness.
• Entrepreneurial activity is concerned with the creation, evaluation and exploitation of
ideas – making good ideas into a successful product, system or environment. It involves
recognising those ideas that have the potential to become successful commercial
ventures, and the ability to turn ideas into products. Those who participate in this activity
possess special characteristics.

Chapter summary tasks

1 Outline three different categories technologies can be divided into.

2 Describe why the factor of timing impacts on the success of an innovation.
3 Describe the terms ‘market pull’ and ‘technology push’.
4 Evaluate the major considerations of responsible designers.
5 Identify three factors that affect innovation.
6 Justify how marketing strategy and consumer demand impact on the success of an innovation.
7 Evaluate the impact of the social environment into which an innovation emerges.
8 Discuss the ways in which governments may influence the success or failure of innovation.
9 Identify and describe the characteristics that an entrepreneur espouses. Discuss how these
may lead to successful business ventures.
10 Describe the process you will go through if you decide to obtain legal ownership of your idea
for your MDP.

Extension tasks

1 Select two different innovations. Compare and contrast the factors that have impacted
on their success of failure.
2 Choose three agencies described in this chapter. Explain how they may be used to
assist in the development of innovation. Use examples to support your answer.

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