C2- Natural Experiment:

An isolated change in one

aspect of the environment.
Assuming every other external
input was constant. [Maori vs
Moriori] Same founding
population but different
environment
Moriori in Chathams crops
could not grow in cold climate,
revert to being hunter-gathers
same island restrict to small
population (small remote
islands, live in peace, simple
economy, simple tech/weapon)
Maori in NZ -> dense
population grow and store
crop surpluses support craft
specialists, chiefs, and part-time
soldiers, engage in wars.
Developed tools and buildings
more advanced tech and
weapon
Difference must be due to
environmental variables
Island climate rainfall varies
dry islands cant farm
Geological type range of
minerals vs volcanoes (stones
tools, ash falls rich soil) vs
limestone atolls).
Marine resources Lagoons vs
rocky coast/steep drop ocean
Area: 100 acres islands vs
130,000 miles mini-continent
Terrain fragmentation
fragmented by ridges vs gentle
terrain. Restricts travel and
communication. Isolation in
contact with others or
developed alone
C4-Farmer Power
[Direct] Food production
domesticating wild animals and
plants
- More consumable
caloriesmore people
- Farming vs huntingselect
and grow specific species of
plants/animalsmore edible
calories per acre(90%vs0.1%)
- Meat, Milk, Fertilizers,
pulling plows
[Indirect]
Food production Sedentary
lifestyle
Shorter birth cyclehigher
birthratehigher population
density
Food surplus feed specialist
(kings-politics, artisans
weapons/tools, Solders-war)
Usually when there are large
agriculture societies, it becomes
kingdoms, chiefdoms.
[Other uses]Warmth and
tools Natural fibers,
leather(cow), containers(gourd)
Transportation Horse,donkey,
camels, llama, War Horse
camels
Germs! 1ST evolved in human
societies with domestic animal.
(old world[past to new world])
Human who 1st domesticated
animals, gets infected than gain
resistance to new diseases.
When these partially immune
people came into contact with
others, the others who had no
prior exposure to germs were
95% killed. More people

C3 Collision at Cajamarca
(old vs new) (Spinards vs Incas)
168 Spanish Conquistadors
slaughtered more than 7,000
Inca warriors within 24 hours
Pizarro capture Atahuallpa
Steel swords, armor, guns and
horses
Atahuallpa at Cajamarca? Just
won civil war that divided the
Incas Smallpox epidemic, spread
by Spanish settler in
Panama/Columbia
Pizarro at Cajamarca?
European maritime technology,
centralized political organization
+ writing
Atahuallpa walking into trap:
Little information, poor info from
envoy, underestimation No
writing? Information can be
spread more widely, accurately,
more detailed than word of
mouth. Poor body knowledge
about human behaviour
Proximate factors 1) Guns 2)
Steel 3) Horses 4) Germs 5)
Centralized politics 6) Writing
7)Maritime tech
Ultimate factors: knowledge
spreading from the Fertile
Cresent
East/West axis Ease of
species spreading + many
suitable wild species many
domesticated plant and animal
species Food surpluses, food
storage Large, dense,
sedentary, stratified society
C6 Farm or not
Food production requires more
time than hunter-gatherers. It
was not a sudden
discovery/invention. Slowly
evolved. Food production and
hunting-gathering are alternative
strategies. Over the last 10,000
years food production prevailed.
5 factors!
1)Extinction of animals
2)Increased availability of
domestic able wild plants 3)
Improved tech for collecting,
processing and storing food 4)2way link rise in human
population and rise in food
production-autocatalytic
process positive feedback
cycle: these are the reasons why
food production only began in
8500BC and not earlier because
back then hunting was more
rewarding, wild animals were
more abundant, wild plans not
abundant, lack tech
5) Geographic Boundaries.
Food producers with denser
population displaced or killed
hunters. Either the hunters
convert to farmers or get
killed/displaced. Those hunters
that survived and escaped were
those confined to areas not fit for
food production and that
geographical boundaries
protected them.

3 Domesticated animals (pig,

chicken, dog) no terrestrial bird
left to hunt build chicken

C1 innovation
Innovations are a subset of
inventions(exploit and apply to
business)
InventionCommercialization-Diffusion
Successful innovation =
Technology + business model
Commercialisation: business
model -> value creation & value
capture
Why innovations fail?
1) technological failure(doesn`t
work)
2) Market failure : Change in
market conditions/Product doesn`t
meet consumer needs/poor
marketing
Source of innovation:
Individuals: Growth of the small
firmsector
Corporate undertakings: Able to
support R&D, integrate several biz
functions for successful
exploitation; sufficient resources
Users: Awareness of needs.
Understanding of market
requirements unconventional
wisdom&lead-user innovation.
Employee: Close involvement in
work
Outsiders: Avoid pitfalls, less
inhibitions, open to new approach,
wide knowledge base, greater
absorptive capacity
Spillovers: Follower strategy.
Occurs where there are a large
number of potential applications.
Involves other firms` benefit from
R&D expenditure of leader firm.
Occurs where it is difficult to
prevent others from appropriating
benefits. Often associated with
need for complementary assets.
Process Needs: Manufacturing
process requirements is a stimulus
to innovation. Lowering costs may
act as driver. Bottleneck leads to
process improvement
Implications:
Tech is cyclical(Hesitant start
fast growth saturation decline
& stagnate);
Variation in rate of innovation
(innovations bunched together);
Reinforce notion of diff
innovations (early-radical, laterincremental);
Some tech bigger
impact(transforming power);
Tech correspond with
institutional
changes(education&training,
industrial relations, corporate
structures, system of mgt, capital
mkts, legal framework)
Ability to link tech to
economic & social aspects of
life ;
Highlight impact of
transforming tech and costs
C3Technological Change:
Prosperity: Innovation diffusion
Produced in large quantity, price
comes down, rising living
standard, startups, expansion ,
products are produced in large
quantity in broader market.
Recession: Innovation spillover
new work practices & productivity
growth, diminishing returns,
spillover surplus firms shakeout,

Recovery: increased rate of

innovation increased innovation,
new industry, new technology, high
novelty value, competing products,
entrepreneurial, high uncertainty
Technology S-curve: 1) Begin with
a learning curve as technology is
better understood 2)Technology
reaches a natural limit as it
matures 3)Gradually engineering
effort produces diminishing
returns 4) Eventually technology
switch to new technology
C6 process of innovation
Process: Insight/Research:
Human Ingenuity; Overlapping of
insight of individuals and research
effort | Development: Turing ideas
and technologies into products --Testing, modifying and improving
product; Construction of models(no
function, form only) and
prototype(1.Testing&evaluation;
2.Integration; 3.Learning
properties/user behavior; 4/ Risk
Reduction) | Design: (shape,
tolerance, materials,
process)Detailed design; Feasibility of
design (for manufacturing);
technical(for system), industrial(for
functionality) and traditional(for
design) designers are in the team |
Market Evaluation: presents
accurate product potential value;
value proposition+revenue
generation mechanism. Production
engineering : how the product will
be manufactured | Market/pilot
testing: Market
testing(customer&supply chain
reaction); physical testing(safety) |
Full-scale manufacture and
launch: manufacturing system
equipment commissioning process;
training to use manufacturing
system; 30% production capacity for
learning curve; identify flaws and
collect market data; gradually
building up production
Commmercialization phase
Produce in quantity and quality:
Design-Giving attributes and
features required by the consumers,
not just mere functionality
Production Engineering-Concerned
with making the product. In-house or
outsource? Selecting most
appropriate production system.
Jobbing System-User of generalpurpose equipment to make one
product at a time usually to a unique
design Batch system-Use of
general-purpose equipment
combined with special purpose
tooling to manufacture products in
batches. Line system-Mass
production. Using dedicated
equipment Continuous process
system-Continuous flow of work
through the system, such tat systems
are in continuous operations day and
night. Pilot testing- ensure it will be
safe in the hands of the consumers.
Involves interaction with customers.
Maybe a public requirement
Full-scale manufacture-refers top.
Market Launch- More focus on
marketing efforts, introducing
products to the public
(appropriate stocknaming,advertising
and ad space ,promotion, product
exhibition,

susceptiblespread even faster

Subsistence: Farming
affected by soil quality,
availability of water, elevation
for rainfalls and climate.

house. Large crop yieldsupport

pig farming.

transformative capacity at the

greatest. Depression: dominant
design/innovation shakeout
continues, intense price
competition, declining profitability,
low growth, rising unemployment,
M&A, new industries,
discoveries&inventions
emerge,shakeout

C2 Type of Innovation
3 Innovation forms: Product,
Service, Process
4 Innovation types: incremental,
radical, modular, architectural
Component knowledge; System
knowledge
Collective Switching Cost; Lock-in
effect

Innovation categorization
has predictive power of impact
of particular innovation. Firms
respond to innovation vary
in Component -> rapid take-up
of new technology to reinforce
competitive position of
incumbent System
/architectural change ->
incumbents less happy as
position may be eroded
C5 Sources of Innovation
Absorptive capacity: ability to
recognize, absorb and apply |
Determinants for absorptive
capacity: Exposure to relevant
knowledge | Presence of prior
related knowledge | Diversity of
experience (in an organization)
4 Basis of Insight(a moment

unconnected ideas; insights in

one field provides solutions in
another. 2.AdaptionTaking an
existing solution and adapting it
to another 3.AnalogyInsight
from an unrelated principle
/activity 4.Serendipity/chance
Insight derived from chance
Flash of genius requires a
combination of chance, prior
knowledge and experience
5 models for Innovation
Process
Technology push: Basic
science Design & Engineering
ManufacturingMarketing
Sales
Driven by developments in
science
technology |Process is entirely

Development
ManufacturingSales
-Role of market is
central+source of idea
innovation process is linear,
sequential. Market forms the
source of ideas for new
innovations knowledge of
consumer requirement: drives
R&D
-technological incrementalism
-Firms devote energies on
incremental innovations to meet
customer needs but ignore
emerging new technologies that
may lead to radical innovations
- lose capacity to innovation when
use old technology if time is
superseded
Both these 2 models are flawed

dominant while at other times market

is
more powerful. Both technology and
market are influential. Feedback
Loop: Lines of communications
between
functions carry 2-way traffic
Integrated Model: End to strictly
linear and sequential process; New
development process from the start;
Functional considerations brought
into new product development
process from start; Joint group
meetings consider maufacturability
Network: Draw on external
resources for innovation; Rising
consumer expectations &
increasing emphasis on choice and
varietyincreasing emphasis on
innovation& new-product

of inspiration when an idea

occurs to an individual and
forms the basis of an idea):
1.AssociationInsight through
bringing together apparently
Idea&External development and
market the products from
internal ideas | External
idea&Internal development] |
Mobility of knowledge &capital;
Vertical integration vertical
disintegration
How is open innovation
conducted: External sources:
large companies, start-up
companies(highly specialized
enterprise), universities, tech
brokers | External routes:
licensing agreement, new
venture creation (joint
venture/spin-off companies) |
Sourcing new ideas/discoveries;
realizing the commercial
potential of internally generated
ideas/discoveries
C7 Intellectual Property-a
creative effort that gives rise to
something new. Product of the
application of knowledge and
skills. Deter copying-The
greater the potential value of an
intellectual activity, stronger the
inventive to copy
Intellectual property rightsCreate a system for innovators
by which can benefit from their
ingenuity. Can sell or license it
out. Provides legal recognition
of ownership for the creator of
new design, new product,
written work. Right to stop from
exploiting owner`s IP. Forms of
IPR: Patent(to incentivize and
encourage innovation): Process
and ideas; Legal rights that is
enforceable by legal action; aids
process of innovation by
deterring would-be copiers;
allow innovator to benefit
sufficiently; Disclosure of
invention; reduce duplication
efforts 3 Patent conditions:
1)Novelty: invention must not
have been made public prior to
the date at which the patent
application is filed 2)Inventive
step: must be not obvious to
someone skilled in the art
Industrial application. The
apparatus patented would strike
someone with general
knowledge as incorporating
something that constitutes a
genuine invention. 3) Capable
of industrial application-have
a technical effect. Rule out
scientific discoveries. Discovery
has to be incorporated into
product, process which can be
patented instead.
Injunction: Infringer required
to cease production of offending
product.
Damages: Infringer required to
pay damages to patent holder.
Order: All infringing articles or
current production to be handed
over to the patent holder or
destroyed. Declaration:
Declare that the patent is valid
and has indeed been infringed
by the defendant.
Can`t be patented:

linear and sequential, each

stage following the
completion of the previous one |
Model virtually ignores the
marketplace, which is
portrayed as being passive and
simply taking what technology
has to offer
Demand pull: Marketneed
Registered Designs(cover
designs where outward
appearance is important):
Design must be new and
materially different; Two
exception: must-fit and mustmatch; 2D & 3D objects
covered; Design must be new
and has not been made public
Design right(cover designs that
are more functional): prevent
copying; protection arises
automatically when created; not
extend to two-dimensional
designs; if produced by an
employee it goes to employer;No
2D design;last 10 years from
Marketing Date,15 year from
creation. Trademarks(1875)
(distinguish the goods of one
trader from those of another)
brand name, words, logo, slogan,
pictures: trademark singles out
company and its product from
competitors; should not mislead
public or deceptive; should be
distinctive; no conflict with
existing trademarks; 10 years
renewable.
Passing off(must not sell goods
under the pretence of the goods
of another): misrepresentation;
reputation/good will is attached
to goods; damage to reputation
Licensing: inventor does not
have to complete the final
stages of the innovation process
(manufacturing/distribution).
Copyrights(intangible right that
comes into effect through
creative effort): confers
exclusive right to certain actions
in relation to the work upon the
owner; author can choose to
assign or sell it to another;
Exclusive rights: copying or
reproducing, adapting,
distributing, issuing and renting,
public performance,
broadcasting. Belongs to the
creator
C8Technology Strategy
Business strategy for whole
business(long-term objectives
like growth or
internationalisation);
1) Seek new customers within
existing market that org is
serving/entirely new markets 2)
Seek new products or services,
or sticking with existing ones
Cost leadership;
Differentiation; Focus(homing
on a narrow range of specific
market segments, not broad)

Functional strategy(Marketing,
HR, Ops, Tech) | Product

as department for each stage

works in isolation, providing
little guidance & help to next
department
Coupling model Linear &
Sequential
Slow process, learning is not
passed on, final outcome not as
effective
In coupling, sometimes technology
is
Concerned with long-term
development of the core
technologies that make up the
technology based of the org.2
Issues: Breathrange of
technologies
Depthlevel of expertise
associated with techonology|
Internal environment: Strategic
action & Organizational context
External environment:
Technology evolution & industry
context
Porters Generic Strategies: Focus
on the way which organizations
compete
Nature of technology strategy:
technology selection[choice of
most appropriate technology from
incremental changes to
transforming technologies];
technology acquisition[direct
investment; joint venture; subcontract R&D]; Technology
development[R&D Function
(some can be done outside the
firm); expensive&time-consuming;
gap between laboratory use and
market use]; Technology
exploitation[Innovation
process(critical role of IPR in this
choice);
2 hurdles to overcome:
1)Risk(level of uncertainty with
new tech)
Market risk: consumers may not
want
Tech risk: technology may fail
2)Funding: investment for
successful exploitation. Delay
between investment made and
revenue generated.
Enabled through new institutions
(strategic alliances, joint ventures,
contracts with 3rd-partu orgs),
Proved popular in some industries,
Pharmaceuticals, aerospace,
computing.
Reasons: Improved ICT:
externalization of activities(R&D);
Spread risk&cost; Linked to
vertical disintegration of large
companies; Rising consumer
expectations/emphasis on choice
& variety fuel innovation + new
product development
Connect&Develop: Accelerate
innovation, R&D,
productivity&product launch.
Require mindset change, top
mgmt support. 1)Connect:
identify people or organizations to
form the network 2)
Set boundaries and engage:
define networks goals and
objectives
3) Support and govern: decide
on the leadership structure for the
network, along with any protocols
for meeting, sharing ideas,
decision making and gaining

development; collaborative
innovation; alliances &
agreements &contracts; vertical
disintegration; ceasing certain tech
intensive and costly activities such as
research; innovation process and
integration of development activities
carried out by partners. Open
innovation: [Internal
Derivative Strategy [Reinnovation] less risk --Apply new
technology to existing products:
Lower innovation cost /investment;
builds on existing customer
knowledge; causes incremental
innovation
External Process/external Tech
exploitation (tech is sold to 3rd party
who undertakes innovation)
Licensing: let someone else use the
technology in return for royalty
payment / Control & strength of IPR
protection environments
3 factors affecting decision to
license
1)Complementary assets in
production & marketing 2)Transaction
costs associated with acquiring
complementary assets
3) Competition in final product
market
Spin-off: where one organization
literally creates another organization
in order to exploit the techonlogy
Avoids unnecessary distractions to
the main firm, whose core may not be
about the technology
Means of achieving spin-off: Initial
public offering(IPO); Managementbuy-out(MBO); Sale to venture
capitalist; Sale to another company;
Get lump sum VS future income
stream(Licensing) Why external
Exploitation:
Lack of resources; Lack not
knowledge; Poor fit with firm`s
strategy; lack of reach; lack of
motivation (Product Strategy)
Innovation Strategy: for carrying
out an innovation (who&when)
Internal exploitation :
First/Early Mover Strategy
Gain dominant & enduring market
position; Set consumer expectation &
build strong market share
Depends on 3 factors for success
Appropriability: Extent which
innovator is able to appropriate the
benefits of innovation for himself and
stop others from copying (IPR)
Complementary assets If
important, lower chance of
succeeding. Would-be imitators can
easily put such assets in place and
compete
Product standards Extent to which
the creation of a common standard
facilities interchangeability or
training. Ability for innovation to
become industry standards.
Follower/Imitator Strategy
Free rider effects: if
infrastructure/facilities can be
used/copied easily. Gaining regulatory
approval. Pioneer firm has to bear
costs that followers do not. Imitation
costs: if lowease for development
of copycat products. Scope
economies: Where several versions
of a product share a common origin;
Able to reduce costs for follower
firms. Learning effects: Follower

Mathematical models; Scientific

theories; Aesthetic creations;
Computer software and
business methods(Outside U.S)

Strategy: product long term

development
Technology Strategy(a
functional strategy)
definition, development and use
of technological competencies
that constitute their competitive
advantage

resources. 4) Manage and track:

how network members will be
recognized and rewarded for their
contributions, the agreement
about process-tracking criteria,
and some guidelines on how new
members join the network and
others leave
Internal Exploitation(The
organisation /individual carries out
the innovations; Better return on
the investment):Direct
Investmenthigh risk More
complicated, time-consuming,
expensive. Constraints in
resources, timescale, greater
reward

firms learn from mistakes by pioneer

firms. Know customer
requirements
Side-entrance strategy: achieve
market entry via a small niche rather
than the main market; innovation can
be extended to main market
Derivative strategy: Applying a
new technology to an existing
product t create a new product

Social Networks: Principle of Reciprocity -The degree to which you trade favors with others. Principle of Exchange -Greater opportunity 4
trading-each party brings a complementary resource and increases the value of exchange ; Principle of Similarity -Network ties, tend to develop
spontaneously between actors with common backgrounds, values, and interests