Abernathy, W., Utterback, Patterns of industrial innovation

small technology based enterprise

major high-volume producer

unit of analysis

product change:

introduced outside established industry

from start-ups

invasion from leading firms in other industries

government sponsorship of change

productive unit = 1 operating manager

simple firm/ single product

diversified firm

several separate firms

radical innovation --> incremental change

not rigid, independent categories

organizations with incremental innovations were often first small fluid units with focus on product innovation

challange for radical innovations: gaining experience to select dominant design

accompanied by heightening price competition

increased emphasis on process innovation

from flexible, manual labour and general purpose equipment to automated, equipment intensive and high-volume processes

processed food: innovation came from individuals and small organizations

research relied on information from users

from ill-defined and uncertain targets to well-articulated design objectives

uncertainty

relevant technologies little explored

little incentive for major investments in formal R&D

capacity to process information

later on: formal planning groups etc.

later on: reducing need for information processing

formal R&D investments when uncertainty and targets become more clear

beginning: often purchased equipment, when fully matured --> processes likely to be designed as integrated systems + innovation outside the unit

early stages

performance criteria not quantificable

relative importance criteria unclear

--> users often innovators

regugaltory constraints= new performance dimensions

dominant design displayede by following qualities

lift technical constraints without creating new ones

enhance value of potential innovations in other elements of a product or process

assure expansion into new markets

high volume products

innovation is incremental by nature

countless minor product and system improvements

often more than half of the total ultimate economic gain

due to greater number

cost reduction major incentive

performance advances

economies of scale

well defined markets

product characteristics are well understood and standardized

unit profit low

concurrention based on efficiency and price

change becomes costly because of high integration

productive unit loses flexibility

increasingly vulnerable to changed demand

new products

often require reorientation of corporate goals or productoin facilities

identification of emerging needs or new ways to meet existing needs

occure more in

affluent markets

entrepreneurially oriented financial institutions

scienc-based universities/ research institutions

competitive advantage = superior performance

higher unit profit margins

performance criteria vague

users important in suggesting needs & ultimate form

organisations should be

small

adaptable

flexible

good external communications

economies of scale not of prime importance because of rapid product change

transition from product to mass production and product to process innovation

barriers of innovation

unmet conditions for transition

new units: product standardization & market aggregation

established units: government regulation & vulnerability of existing investments

sometimes so fast that it's unrecognized

barriers may make transition impossible

units in different stages respond to differing stimuli, undertake different types of innovation

common explanation of failure

conditions necessary to support sought after technical advance unpresent

can a firm increase variety and diversity of products while realizing highest efficiency?

is product innovation consistent with an effort to substantially reduce costs through backward integration?

would actions to restructure work environment make taks less repetitive be compatible with policies of mechanization to reduce labor needs?

can governments stimulate productivity by forcing young industries to standardize products before dominant designes are realized?

is government policy to maintain diversified markets consistent with high product innovation effectivity?