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SMTI LECTURE NOTESKnowledge clips and more
KNOWLEDGE CLIP 1: THE IMPORTANCE OF INNOVATIONSTRATEGIC MANAGEMENT OF
TECHNOLOGY & INNOVATION
Important sectors:
- Energy
o Sustainable direction.
- Healthcare
o Researchers are trying to find a COVID vaccine but also ‘making’ organs
- Finance
o Automatized (PIN)
- Automotive
o Tesla
Joseph Schumpeter (1883-1950)
“The process of creative destruction is the essential fact of capitalism” (Schumpeter, 1942)
- One of the first economists who talks about innovation.
o Innovation comes, destructs something and comes with something better.
▪ Ice blocks → refrigerator, the ice block sector is destroyed.
Kondratieff Waves
Consequences of innovation: employment
Innovation often creates jobs... but different jobs.
,Current economics and innovation
Bottleneck variables for Computerisation
- People are still doing this better than machines.
Ongoing study evidence
- Increased developments in AI correlates with higher wages for high-software
dependent jobs
- Low- and high-software dependent jobs see a moderate increase in employment,
whereas medium software intensity jobs see a decrease in employment (though
statistically all not significant).
, • Focusing on their customers. How they can change life or improve things around
them is important.
KNOWLEDGE CLIP 2: THE IMPORTANCE OF INNOVATIONSTRATEGIC MANAGEMENT OF
TECHNOLOGY & INNOVATION PART 2
Innovation is key to an organization’s survival.
• Red queen effect → you keep running but standing in the same place.
, Poster child: polaroid. Their business model wasn’t successful. What customers want,
change. Like now: they want to have instant films.
Increasing importance of innovation
• Globalization
• Increased competition (differentiation)
• Speed of knowledge development
• Shortened development cycles and product life cycles
• Enabling technologies: computer-aided design; flexible manufacturing systems; 3D
printing; internet-of-things
The Netherlands: Strengths & Weaknesses
- Bol.com → innovators, it is mostly a service.
Technology
- Technology is a means to fulfill a human purpose
➢ device
➢ process
- Technology consists of multiple components linked together
- Technology exploits phenomena to fulfill its purpose
- “A technology is a phenomenon captured and put to use”
Innovation
- Technological innovation is the act of introducing a new device, method or material
for application to commercial or practical objectives (Schilling, 2019)
- “Innovation is the process of turning ideas into reality and capturing value from
them” (Tidd & Bessant 2009)
- Innovation = theoretical conception + technical invention + commercial exploitation
(Trott, 2012: 15, the total view of innovation)
KNOWLEDGE CLIP 3: SOURCES OF INNOVATION
Many sources of innovation:
- Inventors
- Users
- Firms
- Universities and government-funded research
- Private Nonprofit organizations
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