208KM Tutorial 2

Question 1

Many innovations today are associated with companies as opposed to individuals.

Why is this, and what does it tell us?

Answer: You are required to examine differences between innovations in the eighteenth and

nineteenth centuries and with innovations today. The role of the organisation and the multinational firm is now significant. They need to discuss issues such as:

depth of knowledge required in significant innovations of the twentieth century;

the ability to make linkages between advanced technology groups;

global markets;

expanding knowledge base of businesses and societies; and

huge level of resources required for R&D, marketing and distribution, etc.

Question 2

What is wrong with the popular view of innovation in which eccentric scientists

develop new products?

Answer: Quite simply it is damaging to the reputation of science and scientists in particular. One can understand why it is popular with film makers and tabloid press editors and that is because

much of science is not understood and also because people live in hope that scientists can do

anything. The truth is very different, and virtually all scientific progress is slow and takes many

years of many people’s considerable efforts. Progress is also largely down to teamwork, with

considerable size groups of scientists often working on particular projects.

Question 3

Explain how technology differs from science, yet still does not equal innovation.

Answer: Technology is usually defined as the application of knowledge to products or processes,

whereas science represents formulated knowledge, that is, explaining how things happen. Technology takes these pieces of formulated knowledge and applies them to human needs. Having interesting technology is still a long way from innovation. Take the current interest in fuel

cell technology for automobiles. Multinational firms, such as British Petroleum, Shell Oil, General Motors and many others have been spending huge sums of money trying to uncover ways of using fuel cell technology to power motor cars. We await their developments.

Question 4

What is the difference between an unsuccessful innovation and an invention?

Answer: While this may be viewed by some as an academic debate about semantics, my experience suggests this seems to be important for students; they rightly want to be clear about the basic concepts. To help them, the distinction is that clear innovations must involve commercial exploitation. That is some marketing, sales and distribution effort, otherwise a significant part of the innovation process is not being undertaken. Therefore, inventions are ideas that don’t make it to the market place.

Question 5

To what extent do you agree with the controversial view presented by the Chairman

of Sony?

Answer: Akio Morita suggested that successful organisations need to be run by technologists rather than accountants because accountants concentrate on looking at the past, whereas technologists concentrate on the future. He argued that this is one of the major differences between businesses in the West and Japan. This is deliberately controversial but introduces the issue of ‘short-termism’ so often identified as the reason for the UK’s poor performance in technology development and innovation. An examination of the way Germany finances its industry would also be useful here.

Question 6

To what extent are industry standards (such as the VHS format) beneficial?

Answer: A single format is usually preferred by suppliers and customers, both of whom who are able to apply pressure to force changes. A uniform standard enables suppliers to gain economies of scale in their production. For example, music publishers at one time had to produce their music

on several formats, including vinyl, cassette and compact disc. Similarly, film publishers had to

produce on to VHS and Beetamax cassettes. The same is true in the software industry. Many would argue that a single format is restrictive and can hinder innovation; they use the Apple computer operating system as a case in point. The Apple operating system is generally regarded as superior to MS DOS and MS Windows, yet the dominant standard is now MS Windows. Others would argue that a single standard encourages innovation because a single large market is more attractive.

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