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Schilling 01
Schilling 01
Melissa Schilling
INTRODUCTION
Tell people you are going to reengineer - and 80% won't cooperate
Tell people you are going to be innovative - and win their enthusiastic support
Impact on Society
The aggregate impact of technological innovation can be seen in GDP (gross domestic product the total annual output of an economy). The average GDP per capita for the world has risen steadily since 1971, particularly in the developed economies Economist Robert Solow showed that the growth in GDP was not solely on growth in labor and capital inputs but technological changes as well (Nobel prize 1981) GDP relates to improved quality of life and thus technological innovation has a positive impact on society
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Impact on Society
Innovation enables a wider range of goods and services to be delivered to people worldwide
More efficient food production, improved medical technologies, better transportation,etc. Increases Gross Domestic Product by making labor and capital more effective and efficient However, may result in negative externalities,
E.g., pollution, erosion, antibiotic-resistant bacteria
Impact on Society
Impact on Society
The majority of R&D funds spent in OECD countries come from industry, and percentage has been increasing. The role of the government in supporting this research has been declining
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Research Brief
How long does new product development take?
Study by Abbie Griffin of 116 firms developing B2B innovations found:
Length of development cycle varies with innovativeness of project Incremental improvements took 8.6 months from concept to market introduction Next generation improvements took 22 months. New-to-the-firm product lines took 36 months New-to-the-world products took 53 months. Half of the companies had reduced their cycle time by an average of 33% over last five years.
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Discussion Questions
1. Why is innovation so important for firms to compete in many industries? 2. What are some of the advantages of technological innovation? Disadvantages? 3. Why do you think so many innovation projects fail to generate an economic return?
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