ENTREPRENEURSHIP &

INNOVATION PART 3
Innovation
General Introduction
The concept ‘Innovation’
 General Introduction
A problematic term that defies
simple definitions
 There is no universally agreed
definition
The concept ‘Innovation’
Innovation
Conceptualisations
Definition & Meaning
The concept ‘Innovation’
Conceptualisations
Process perspective
Outcome perspective
Knowledge Perspective
The concept ‘Innovation’
The
 Process perspective
 It is generating ideas and
putting them into practice to
overcome challenges and
exploit opportunities.
 It is the successful application
of ideas
The concept ‘Innovation’
The Process perspective

It is systematic act of turning
“something” (a product, an
idea, information, technology
etc) into a resource that is of
value to its target market
(Drucker, 1986).
The concept ‘Innovation’
 Process perspective
A multi-stage process whereby
organizations transform ideas into
new/improved products, services or
processes in order to advance,
compete and differentiate themselves
successfully in their marketplace.
The concept ‘Innovation’
 Process perspective
The development of novel
combinations of resources
The concept ‘Innovation’
 Process perspective
 The innovation process is
composed of both knowledge and
social processes (Kanter, 1988).
The concept ‘Innovation’
Creativity
 Is creativity a part of the
innovation process?
 Does creativity precede the
innovation process?
The concept ‘Innovation’
The Outcome perspective
The focus is on the outcome
of the process
What is the outcome of the
innovation process?
The concept ‘Innovation’
The Outcome perspective
Innovation arises in the form of:
New products
New quality of existing products
New production methods or
processes
Opening up of new markets
The concept ‘Innovation’
The Outcome perspective
Innovation arises in the form of:
New sources of raw materials
A re-organisation of a business
already in the market
 Innovation
 Creativity
 It is the generation of
new ideas.
 It is defined as original
thinking (Amabile,
1988)
 Innovation
 Creativity
 It is the ability to challenge
assumptions, break
boundaries, recognise
patterns, see in new ways,
make new connections, take
risks, and seize upon chance
when dealing with a problem
 Innovation
 Creativity
 It is defined as a
process of finding and
solving problems
(Basadur et al., 1982)
 Innovation
 Creativity
 It is an ability to discover
something new, to adapt
the available knowledge
purposefully and solve
the problems originally,
flexibly and effectively.
 Innovation
 Creativity
 It is defined as a
creative use of existing
knowledge (Henard &
McFadyen, 2008)
 Innovation
 Knowledge perspective
 Innovation
 Knowledge perspective
It is a knowledge-based
conceptualisation of
innovation
 Innovation
 Knowledge perspective
The creation of new knowledge
and ideas to facilitate new
business outcomes aimed at
improving internal business
processes and structures and
to create market driven
products and services
 Innovation
 Knowledge perspective
 A knowledge creation
process aimed at creating
new knowledge geared
towards the development
of commercial and viable
solutions.
 Innovation
 Knowledge perspective
The development of
novel combinations of
resources
 Innovation
 Analysis of the Knowledge
perspective
It is a pre-requisite for innovation
 An innovation is an applied
knowledge
 A firm’s innovative capability is
seen as a function of prior
knowledge.
 Innovation
 Knowledge
It is intellectual capital
of organisations.
It is accumulated
learning internal to the
individual/organisation.
 Innovation
 Knowledge
It is context specific
It is derived from
perception, learning and
discovery.
 Innovation
 Forms of Knowledge
Science/Scientific knowledge
Technology/Technological
knowledge
Technical knowledge
Tacit & Explicit
Conceptual Knowledge
Procedural knowledge
 Forms of Knowledge
 Science/Scientific
Knowledge
Synthesised accumulated
learning acquired through
open, systematic and
objective empirical
observations of the world.
 Forms of Knowledge
 Science/Scientific
Knowledge
It is a generalized body of
laws and theories to explain
a phenomenon or behaviour
of interest that are acquired
using the scientific method.
 Forms of Knowledge
 Science/Scientific Knowledge
 Science is systematic and
formulated knowledge.
 Hard sciences
 Electronics
 Synthetic biology
 Biochemistry
 Soft sciences
 Forms of Knowledge
 Science/Scientific Knowledge
 Electronics
 The study and use of devices
that control the flow of electrons
(or other charged particles).
 These devices can be used to
process information or perform
tasks using electromagnetic
power
 Forms of Knowledge
 Science/Scientific
Knowledge
 Biochemistry
Science concerned with the
chemical and physio-
chemical processes and
substances that occur
within living organisms
 Forms of Knowledge
 Science/Scientific Knowledge
Biochemistry
Study of the chemical
substances and processes that
occur in plants, animals, and
microorganisms and of the
changes they undergo during
development and life.
 Forms of Knowledge
 Science/Scientific
Knowledge
Biomimetics
Studies and imitation of
nature’s methods,
mechanisms and processes.
 Forms of Knowledge
 Science/Scientific
Knowledge
Biomimetics
Adapting ideas from biology
can involve copying the
complete appearance and
function of specific
creatures
 Forms of Knowledge
 Science/Scientific
Knowledge
It requires absorptive and
adaptive capabilities
necessary for its
acquisition
 Scientific Knowledge
 Discussion question
 With reference to some
technological innovations,
discuss how Zimbabwean
companies can acquire and
generate scientific
knowledge and translate it
into innovations.
 Forms of Knowledge
 Technology/Technical
knowledge
It is knowledge of humanity’s
tools and techniques.
 It is a body of knowledge
used to create tools, develop
skills, and extract or collect
materials.
 Forms of Knowledge
 Technology/Technical
knowledge
It is applied science
 Forms of Knowledge
 Technology/Technical
knowledge
It is theoretical and practical
knowledge, knowhow, skills
and artefacts that are used
by the firm to develop,
produce and deliver its
products or services.
 Forms of Knowledge
 Technology/Technical
knowledge
Is technology required to
develop innovations?
If so what technologies are
needed?
 What technologies have
been used in innovations?
 Forms of Knowledge
 Technology/Technical
knowledge
What technologies have been
used in innovations?
Biotechnology,
nanotechnology, electronic
technology, ICT.
 Forms of Knowledge
 The nature of technology
It can be material or
immaterial
It is made up of the
hardware, software and
brain ware
 Forms of Knowledge
 Discussion Question
While giving examples of
technologies, discuss how
technology is applied
science and critical to
innovation.
 Forms of Knowledge
 Conceptual Knowledge
It is explicit or implicit
understanding of the
principles that govern a
domain and of the
interrelations between
pieces of knowledge in a
domain.
 Forms of Knowledge
 Conceptual Knowledge
It is an understanding of
the definitions, rules, and
principles in an area of
knowledge.
It is knowledge of the
connections in a concept.
 Forms of Knowledge
 Procedural Knowledge
It is knowledge about how
to do something.
 It is the knowledge that
explains how to perform an
action within the framework
of clear procedures.
Forms of Knowledge
 Tacit and explicit
Knowledge
 Forms of Knowledge
 Tacit Knowledge
 It is what people know
implicitly, deep inside their own
selves
 It is unwritten, unspoken
 It is based on individuals’
experiences, intuitions,
observations, internalised
information and interactions.
 Forms of Knowledge
 Explicit Knowledge
It is formalised, conscious
and codified knowledge.
It is stored, explained and
disseminated through
information technologies
and formal procedures.
Types of Innovation
What are the various
types of innovations?
Types of Innovation
Scientific
Innovations
What are scientific
innovations?
Types of Innovation
Scientific
Innovations

Incremental Radical
Scientific Scientific
Innovations Innovations
 Types of Innovation
Technological innovations
What are technological
innovations?
Are technologies
innovations?
 Knowledge Creation
Creating Knowledge for
innovation
 How is knowledge for
technological innovations
created?
 Knowledge Creation
Research & Development
(R&D)
It is the formal creation
of knowledge including
knowledge embodied in
products and processes.
 Knowledge Creation
Research & Development
Any activity undertaken
for the purpose of
discovering or
developing new
products or processes
 Knowledge Creation
Research & Development
It is:
Systematic
Creative
Formal
 Why R&D?
 Knowledge Creation
Why R&D?
To produce new knowledge
Products, services &
process
Society
Consumers/customers
 Knowledge Creation
Research & Development
Who conducts R&D?
 Knowledge Creation
R&D
Occurs across a wide
range of sectors and
industries and in
companies of all sizes.
 Knowledge Creation
R&D
May be aimed at achieving
either specific or general
objectives.
It is always aimed at new
findings
 Knowledge Creation
 R&D
It is largely uncertain about
its final outcome or at least
about the quantity of time
and resources needed to
achieve it.
It is planned for and budgeted
 Knowledge Creation
R&D
It is activities undertaken to
copy, imitate or reverse
engineer as a means of
gaining knowledge as this
knowledge is not novel.
Knowledge Creation
R&D
It requires creativity and
creative behaviour
R&D activity must lead to
results that are reproducible
transferable
 Knowledge Creation
 R&D in industry sectors
Pharmaceuticals
Energy
Automotive
Software
Food
Water
Health
Agriculture
 Knowledge Creation
Research & Development
Industrial Research
 Knowledge Creation
Types of R&D
Basic research
Applied research
Experimental development
 R&D
Basic research
Undertaken primarily to
acquire new knowledge
Analyses properties,
structures and relationships
to formulate and test
hypotheses, theories or laws.
 R&D
Basic research
It generates new knowledge
without any particular
application or use in view.
 R&D
Basic research
It can be theoretical or
experimental
Results of basic research are
not generally sold but are
usually published in
scientific journals
 R&D
Basic research
Pure basic research
Oriented basic research
 R&D
Applied research
Undertaken in order to
acquire new knowledge
directed primarily towards a
specific, practical aim or
objective.
 R&D
Applied research
Undertaken to determine:
Possible uses for the
findings of basic research
New methods or ways of
achieving specific and
predetermined objectives.
 R&D
Applied research
The applications of the
knowledge derived can be
protected by intellectual
property instruments,
including secrecy.
 R&D
Experimental development
It is systematic work that
draws on knowledge gained
from research and practical
experience and produce
additional knowledge.
 R&D
Experimental development
 It involves:
 Testing the application of
generic knowledge needed to
bring an innovation.
Adaptation of some technology
to a new use
 Does it generates new
knowledge?
 R&D
Experimental development
Acquiring, combining, shaping
and use of existing scientific,
technological, business and
other relevant knowledge and
skills to develop new or
improved products, processes
or services.
 R&D
Experimental development
It is about taking an idea
and making it into a product
or process.
It is translating the research
into a commercial product or
service.
 R&D
Experimental development
What are the activities that
constitute experimental
development?
What activities are not part
of experimental
development?
 R&D
Experimental development
Prototyping
Demonstrating
Piloting
Testing and validation
 Knowledge Creation
Discussion questions
1. Using research-based
industries of your choice,
discuss the role and benefits
of R&D to companies and the
wider economy.
 Knowledge Creation
Discussion questions
2. Highlighting challenges of
R&D in organisations in
Industry and Commerce
elucidate how R&D drives
technological innovations.
 Knowledge Creation
Discussion questions
3. Using examples drawn
from other economies,
elaborate how R&D can be
a strategy for
technological innovation-
driven industrialisation.
 Knowledge Creation
Discussion questions
4. Using illustrative
examples distinguish
between experimental
development and new
product development.
 Knowledge Creation
Discussion questions
5. Critically assess the
relevance of experimental
development in
technological innovation
processes of a technical
company in any industry of
your choice.
R&D & INNOVATION ACTIVITIES
 R&D Activities
1. With reference to companies
in the Agricultural and Food
industry examine R&D activities
for technological innovations.
To what extent does scientific
and technological knowledge
determine the success of
technological innovations?
R&D & INNOVATION ACTIVITIES
Experimentation
It is a scientific method
often involves lab
experiments that are
repeated over and over
R&D & INNOVATION ACTIVITIES
Experimentation
It is a scientific method
often involves lab
experiments that are
repeated over and over
R&D & INNOVATION ACTIVITIES
Experimentation
It is a scientific method
often involves lab
experiments that are
repeated over and over
R&D & INNOVATION ACTIVITIES
 Experimentation
 It is a trial and error
process in which each trial
generates new insights on
a problem.
 Production of new
knowledge relies primarily
on an intervention
R&D & INNOVATION ACTIVITIES
Experimentation
What is the value of
experiments in
companies?
R&D & INNOVATION ACTIVITIES
Experimentation
Experimentation revives
established products,
services & processes.
It enables development of
radical innovations
R&D & INNOVATION ACTIVITIES
Experimentation
What is the value of
experiments in
innovation?
R&D & INNOVATION ACTIVITIES
Experimentation
It produces empirical
evidence that is
universally
applicable/varies across
societies
R&D & INNOVATION ACTIVITIES
 Experimentation
 It produces new findings
 It enable discovery to be
established
It produces insights & new
ideas
It leads to new possibilities
R&D & INNOVATION ACTIVITIES
Experimentation
It exposes important gaps
in knowledge when new
ideas fail.
R&D & INNOVATION ACTIVITIES
Experimentation
It helps in realising
potential faults early,
reinforcing new
knowledge, reducing
costs or preventing fatal
errors later.
R&D & INNOVATION ACTIVITIES
 Experimentation
1a) Evaluate experimentation
as a strategy for
technological innovations. b)
Using a company of your
choice how can managers
proactively address the
dangers of experimentation.
R&D & INNOVATION ACTIVITIES
Market research
What is it?
What are the activities
involved in market
research?
R&D & INNOVATION ACTIVITIES
 Market research
 Using renowned
technological innovations
for illustrative purposes,
discuss critically the
significance of market
research in technological
innovations.
Types & Purpose of Innovation
What are the various
types of innovations and
their significance to
companies?
 Types of Innovation
 Product & Service
innovations
 Discussion Point
Demonstrate the strategic
value of product and service
innovations to companies in
an industry of your choice
Types & Purpose of Innovation
 Product & Service
innovations
 Discussion Point
Demonstrate the strategic
value of product and service
innovations to companies in
an industry of your choice
Types & Purpose of Innovation
 Process innovations
 Offer a firm competitive
advantage.
o They are intended to;
Decrease unit costs of production.
 Improve delivery
 Improve quality
 Improve efficiency
Types & Purpose of Innovation
Market innovations
Discussion Point
With reference to some
companies discuss the
strategic significance of
market innovations
Types & Purpose of Innovation
Technological innovations
What are technological
innovations?
Are technologies
innovations?
Types & Purpose of Innovation
Incremental & Disruptive
innovations
Discussion Point
Using examples discuss
incremental and radical
innovations?
Types & Purpose of Innovation
 Radical & Disruptive innovations
Bring to market very different products
or services that typically undermine
established products and services.
 They can under-perform established
products
Cause demise of companies if they do
not quickly adapt and adjust to the
fundamentally changing situation.
Types & Purpose of Innovation
Radical & Disruptive innovations
 They are developments that
upset, supersede or transform
established business models,
user expectations and
government frameworks and
create hitherto unimagined
possibilities.
Types & Purpose of Innovation
Radical & Disruptive innovations
 They create new markets
 They expand existing markets by
applying different sets of values,
which ultimately and unexpectedly
overtakes existing market.
 Destroy existing markets
 Displaces earlier technologies
 Purpose of Innovation
They are at 3 levels
Company
Industry
Society/Global
 Innovation
Innovation matters
It is a change
strategy
 Innovation
Innovation matters
It is a survival
strategy
 Innovation
Innovation matters
Why is it an
organisational
imperative?
 Innovation
Discussion Question
1. ‘Neither age nor size nor
reputation nor current sales
guarantee that established
companies will be around tomorrow.’
Using Zimbabwean organisations in
Industry and Commerce, to what
extent is innovation and technology-
driven entrepreneurship the only
appropriate strategy?
 Innovation
Discussion Question
2. Using a company of your
choice and its technological
innovations, debate critically
the strategic aspects of
innovation.
 Innovation
Discussion Question
3. Discuss using some global
organisations as cases, the
view that innovation is a
strategy for the attainment
of a company’s vision and
mission.