The Management Of Innovation And Technology: The Shaping Of Technology And Institutions Of The Market Economy

T H E M A N AG E M E N T O F innovation & technology J O H N H OW E L L S Prelims.qxd 11/27/04 3:05 PM Page i The Management of Innovation and Technology Prelims.qxd 11/27/04 3:05 PM Page ii Prelims.qxd 11/27/04 3:05 PM Page iii The Management of Innovation and Technology The Shaping of Technology and Institutions of the Market Economy John Howells Prelims.qxd 11/27/04 3:05 PM Page iv © John Howells 2005 First published 2005 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers. Every effort has been made to trace and acknowledge all copyright owners of the material reprinted herein. However, if any copyright owners have not been located and contacted at the time of publication, the publishers will be pleased to make the necessary arrangements at the first opportunity. SAGE Publications 1 Oliver’s Yard 55 City Road London EC1Y 1SP SAGE Publications Inc 2455 Teller Road Thousand Oaks, California 91320 SAGE Publications India Pvt Ltd B-42, Panchsheel Enclave Post Box 4109 New Delhi 110 017 Library of Congress Control Number: 2004114266 A catalogue record for this book is available from the British Library ISBN 0 7619 7023 1 ISBN 0 7619 7024 X (pbk) Typeset by Selective Minds Infotech Pvt Ltd, Mohali, India Printed and bound in Great Britain by TJ International Ltd, Padstow, Cornwall Contents.qxd 12/1/04 7:49 PM Page v Contents List of Figures and Tables Acknowledgements Preface 1 Technological Innovation Variety in the Meaning Attributed to Invention, Innovation and Technology and the Organisation of this Book Use of the Technology Complex Technology, its Uses and the Institutions of the Market Economy Implications for the Structure of this Book Some Contrasting Conceptual Approaches to the Representation of Innovation Conclusion Notes 2 Invention, Science, R&D and Concepts of Use and Market Invention as the Creative Contribution to Innovation The Role of Existing Patterns of Use in Invention – Reference Markets for Innovation The Management of Industrial R&D Rise of the Organisational Innovation of the R&D Department Concluding Comments Notes 3 Patterns in Technological Development and the Creation of Technological Standards vii viii ix 1 1 3 7 10 11 20 20 22 22 30 41 51 57 58 61 Paths of Development, Increasing Returns to Scale and Dominant Designs Increasing Returns and ‘Path Dependency’ – a Process for ‘Lock-in’ to Specific Designs Managing Neutral Standards through the Recruitment of Competitors – VHS Versus Betamax Video Recorders Conclusions on Standards and Paths of Development Notes 76 83 83 4 Competition and Innovation as Substitution Threat 85 Competitive Scenarios of Innovation Creative Destruction and Firm Response 61 71 85 86 Contents.qxd 12/1/04 7:49 PM Page vi vi Contents Conflict between Competition Policy and Innovation Policy Con