Technology and Innovation plays a crucial role in fostering economic growth of nations and enhancing industrial competitiveness, through its domineering influence over industrial productivity as well as national security. As a result technological innovation has always been intertwined with society’s progress but never in history has technology been so visibly linked to improvements in standard of living. For example, the earlier civilizations were classified by the technologies they used, such as Stone Age, Bronze Age, and Iron Age, while more recent periods have been labeled the Steam Age, Electricity Age, Nuclear Age, Electronic Age, Space Age, Information Age and Biotechnology Age, all focusing on the most rapidly advancing technology of their time (Thamhain, 2005, p.25). It is not by accident that the richest people (Bill Gate, Jack Ma, Mark Zuckerberg, Jeff Bezos, Larry Page & Sergey Brin and Jerry Yang & David Filo) and Firms (Microsoft, Alibaba, Facebook, Amazon, Google and Yahoo) are those that significantly leverage technology and innovation. Hence, the importance of managing technology and innovation cannot be over-emphasized, as national and corporate success in today’s environment depends to a large extent on the ability to manage technology and innovation. Aunger (2010, p.762) captured this importance and call for better understanding of technology:
Many historians suggest that technology is the driving force in history. This claim has become so prevalent that it’s recognized as a doctrine, called ‘technological determinism’. Technological superiority is what allows certain groups to conquer or subjugate others, and so expand their domain of influence… is also what separates us (humans) from every other creature on Earth. After all, the best chimpanzees can do on this front is to use small stones to break nuts open on large stones, whereas we (humans) build skyscrapers to the moon.
Therefore, deep understanding of the capabilities of technology and innovation management is crucial, due to the critical role they play in the creation and execution of corporate (and national) strategy (Sahlman, 2010).
2.0 TECHNOLOGY
Technology have been used by authors to mirror many things such as types of products, manufacturing, information, capabilities, value chain processes, competitive advantage, and/or as an outcome of research or innovation (Sahlman, 2010, p.38). As a result a universally accepted definition of technology is conceptualized to take two major distinct but overlapping meaning i.e. technology (as a) resource and technology (as a) product (Ahmad & Ahmad, 2006). In general technology consists of two primary components:
A Physical Component which comprises of items such as products, tooling, equipment, blueprints, techniques, and processes; and
The Informational Component which consists of know-how in management, marketing, production, quality control, reliability, skilled labor and functional areas (Kumar, Kumar & Persaud, 1999).
2.1 Technology Change: There are two (2) distinct types of technology change i.e. continuous/incremental on one hand discontinuous/breakthrough. In general, four important variables (speed of the change; degree to which the change is noticeable; impact of the change; and the identification of the inventor) form the basis for discriminating between these two types of technological change as detailed in table 1.
Table 1: Continuous/Incremental vs. Discontinuous/Breakthrough Technology Change
Categories
Continuous/Incremental
Discontinuous/Breakthrough
Speed
Slow, Gradual, Plodding Change
Fast, Speedy, Swift Change
Notice
Imperceptible, Unremarkable, Rarely Notice Change
Easily Noticeable & Remarkable Change
Impact
Improves Existing Product and/or process
Create a new product and/or process
Inventor
No Recognizable author/inventor
Have a recognizable author/inventor
Hence, continuous/incremental technology change refers to the gradual, often indiscernible technology flows that improve existing products or processes, which are not attributed to a single inventor. While discontinuous/breakthrough technology change, in contrast, involves revolutionary technological advances due to the invention of new products or process, and quite often are attributed to a particular inventor
The Transition from four wooden-legs black and white TV to (now old-fashioned) colour TV (see Figures 1 & 2) fits into the category of discontinuous change because it was easily noticeable (physically and functionally), for the first time it enables viewing with full colour separation (impact) and have a recognizable inventor (Polish inventor Jan Szczepanik patented a colour television system in 1897). The shift from LCD to LED (as depicted in figure 3) TV is however a classical example for continuous technology change based on the aforementioned four variables.
Figure 1: Four wooden legs Black & White TV Figure 2: Old-Fashioned Colour TV
It is important to note however that clear distinction between the two types of technology changes is largely limited to short time observation. In the long run, the consensus of scholars is that the two are mutually inclusive, that is, to say technological change is characterized by long period of incremental change punctuated by technological breakthrough (Zayglidoupolous, 1999).
Thus the overall shift in TV technology in the long run encompasses both discontinuous (black & white to colour) and continuous (LCD to LED) changes.
2.2 Degree of Technology Advancement
Khalil (2000) identified three (3) categories of industries in relation to its technology usage, however, only the two extreme categories are presented in table 2.
Variables
High Tech Industry
Low Tech Industry
Speed
Highly Skilled & Educated
Un and/or Semi-skilled
Notice
Technology-based
Manual/Semi-automatic
Impact
Breakthrough/discontinuous
Incremental/continuous
Inventor
High
Low and/or non-existing
Output
High Tech/Complex
Stable low/non-tech products
2.3 Perspectives of Technology
There are two major perspectives to viewing technology from management perspective i.e technology resource and/or technology product (Ahmad & Ahmad, 2006). Meaning, sub-types and similarities between the aforementioned types of technologies are discussed in this section.
1. Technology Resource
Meaning: Technology resource is described as the codifiable and non-codifiable information and knowledge that is embedded partly in the manuals and standard practice, partly in the machinery and equipment, and partly in the people and social organization of a particular organization (Zayglidoupolus, 1999). From the definition two important conclusions can be deduce; first, technology resource has three (3) elements. Thus, technology resource encompasses three (3) of the six (6) overall management resources excluding money, materials and market. Measuring the stock and effectiveness of a firm technology therefore entails among other thing the evaluation of the quantity, quality, sophistication and variety of its Machine as well as manpower, which invariably determine the range and scope of methods achievable. Second, all organizations (profit, non-profit, governmental, small, large, new or old etc.) require technology resource to survive.
Types of Technology Resources
There are basically two main types of technology resources based on organizational requirement; Effectual and Ineffectual technologies as described in figure 4.
Effectual Technologies add value to firms. Effectual technologies are further sub-divided into core/key and auxiliary technologies in line with their importance within an organization, department, unit, nation etc. Core/Key Technologies are technologies of paramount importance to organizations; this is because absence and/or failure of these technologies may result in immediate disruption of the normal organizational. Hence, organizations rely on key technologies for their subsistence. Example of core/key technologies: machine – air craft to an airline firm; manpower – pilot to an airliner; and method – account update by banks. Auxiliary/Supporting Technologies on the other hand are technologies that organizations need in order to outperform competitors and generally improves their back-office and front-line operations. Examples include machinery-satellite TV in patients’ room and manpower – security personnel in a hospital. Absence of auxiliary technologies simply means poor competitive position and does not necessarily lead to immediate disruption of corporate operations. In many industries however key technologies are taken for granted, take the airline industry for example; - competition is on the basis of auxiliary technologies such as on-board TV, games and radio stations. Based on the foregoing it is recommended for firms to always have back-ups readily available for core/key technologies in case of unforeseen circumstances.
b. Ineffectual Technologies on the other hand are technologies that do not add value to an organization. In fact they deplete organizational value. From the figure 1 there are three main dimensions of ineffectualism i.e. quantity, quality and variety. One of the forms of ineffectualism is the acquisition of irrelevant technologies, or technologies beyond the quantitative and/or qualitative requirement of a firm (see figure 4). Ineffectualism is a serious strategic issue to organizations as it drains organizational resources and consumes space. Despite these however, few organizations are completely immune from ineffectualism, this is due to among other things corrupt induced over stocking of effectual technologies, poor maintenance culture, sudden change in consumers taste, rapid invention of new technologies and bandwagon effect.
Figure 4: Types of Technology Resource
2. Technology Product
Meaning: Technology products are unique corporate offers to the market that are use not ‘consume’. In essence, consumption of technology product does not lead to its depletion, unlike non-technology products. Examples include computer, software, television, satellite signals, mobile phones, and GSM service (Ahmad & Ahmad, 2006). Two (2) facts are also deductible from the definition of technology product. First, it has two major types, tangible (TV, Laptop, Car) and intangible (Software, GSM service, satellite) second, not all organization produce technology product.
Similarities and Dissimilarities between Technology Resources & Technology Product
In terms of similarities, machine is central to both technology resource and product. Both also share the concept technology in literature. Similarly, technology resources are used to produce technology products. On the other side, while technology resource represent an input (i.e. what firms require) technology are output (what comes out of the firms). Finally, while all organizations require technology resources to exist, only some offer technology products (as many organizations are producing of non-technology products).
Classification of Technology Product
Technology products are often based on six (6) overlapping perspective; sophistication, market place effect, life cycle, contact nature, tangibility and motivation as illustrated in figure 5.
a. Sophistication: Low technologies are simple and stable technologies that are easily produced, such as plates, bucket, chairs, etc. low technology products may be exclusively produced from a single or few materials(s)/substance (s). Low techs are also standalone machines and can be operated without prior formal training. High technologies are complex and unstable technologies that are rarely utilized in isolation and are made from multitude of any complex technologies. They are also rarely used without prior training or with accumulated knowledge. Aircrafts, computers, and handsets are examples of high tech. Medium technologies such as bicycle, wheelbarrow shares the features of both high and low techs.
b. Market Place Effect
Convergent technologies (also known as packet technologies) are technologies that perform the function of two or more different technologies. Four-in-one equipment is a typical example that enables; printing, faxing, photocopying and scanning. Convergent technologies offer important benefits to consumers such as less space requirement, less fatigue and overall cost savings. There are two main types of convergent technologies; simple and complex where the multiple functions performed are related or otherwise respectively. Gartenberg (2002) argued that, convergent technology may compromise functionality and results to higher total cost of ownership, he also argued that their proliferation is mainly influenced by technology vendors technical capacity rather than market need. However, virtually all new and incremental technologies offer one or more elements of convergence. Disruptive technologies are simple, convenient-to-use innovations that are initially used by only the unsophisticated customers at the low end of the market. At the time of their inventions, their impacts were seen as only incremental, if not inconsequential. At the time of their release disruptive technologies are normally inferior and cheaper compared to the (incremental and/or sustaining) technologies they displaced. Disruptive technologies are however, very difficult to deal with. Because their low initial profit makes them less fashionable to the established firms, their inferior nature gives them ample improvements capacity and their simplicity of usage and low cost engenders ease of trials. Disruptive business model, either create new market or take the low end of an established market; the first type creates a new market by targeting non-consumers; the second competes in the low end of an established market.
c. Life Cycle
New and emerging technologies are technologies that enable users to perform new function(s) or a different albeit better ways of performing an old function. New technologies can be further subdivided into first beneath the sky, first beneath the nation and first beneath the company. Not all new technologies matured because of high R & D improvement, lack of loyalty and ease of piracy. Incremental technologies (also referred to as sustaining technologies), usually improves a key parameter of an efficiency, quality, capacity, reduces error rate and portability. Incremental technologies therefore present a new and better way of performing an old function incremental technologies are also further divided according to the intensity of the improvement i.e. minor or radical improvement. Incremental technologies obviously have lesser acceptance problems and R&d expenditure compared to new technologies.
Deliberate incremental effort usually target safety, compatibility, resistant to extreme circumstances, functional and physical upgrade among others. Disappearing Technologies are technologies that are steadily fading from the market, because of the inventions of new/improved technologies and perhaps changes in consumers’ taste. These technologies become virtually useless because the new and improved technologies dominate them in all facets of customer value assessment. Some disappearing technologies are submerged quickly and unnoticeable, as they are completely dominated in virtually all area of customer’s value assessment. Others disappearing slowly but steadily (partial dominance). Flash over floppy disks present a very good example of complete dominance as the former completely denominated the latter in the areas of portability, capacity, durability, compatibility and cost-benefit. No matter the nature of disappearance however, monitoring of disappearanring technologies, should form part of technology strategy in order to avoid last minute expensive changes.
d. Contact Nature: Continuous contact technology products require unending relationship between technology firms and their clients. Most intangible technologies such as telecom service providers require continuous supply of tech product to enable incessant relationship with clients. Discontinuous contact technology products only require intermittent relationship with the technology firms, e.g. Software-periodic update and Motor vehicle-maintenance. Yet another category is one-off contact e.g. buying a spoon, sharpener, syringe and needle.
e. Tangibility: Tangibility product can be either tangible such as car, refrigerator, and watch or intangible such as GSM service, satellite signal or software. For tangible technologies such as laptop, mobile and aircraft their physically is a pre requisite for their functionality. Not so for intangible technologies where functionality not tied to their physicality for example we routinely used satellite signals despite not being able to see, feel or touch it.
f. Motivation: Technology push occurs when new opportunities arising out of research gave rise to new technologies, applications and refinements which eventually found their way to the market place. Market Pull technologies on the other hand are technological products whose motivation is necessitated by the unfulfilled market needs.
Figure 5: Classification of Technology Product
3.0 INNOVATION
Invention & Discoveries (I&D) are the starting point of innovation process (Burgelman, Christensen & Wheelwright, 2004 p.2). The bottom line for innovation is the market, which will buy it or ignore it, thereby determining success or failure. The term innovation comes from latin’s word innovare, which means ‘to make something new’ (Amidon, 2003; Tidd, Bessant, & Pavitt, 2005). Innovation in its multiple dimensions (products, process, marketing, original, technological, etc.) is a key success requirement in today’s business environment (Hamel, 2001).
3.1 Origin & Meaning
We discover what existed though unknown to us, while we invent what never existed before. Hence we discover islands/natural resources and invent machines/devices. Invention and Discovery (I&D) are the result of creative processes that are often serendipitous and very difficult to predict or plan. The success criteria regarding I&D are technical (It is true/real?) rather than commercial. However, through patents, I&D sometimes allow their originators to establish a potential for economic gain with subsequent innovations. Rogers (2003) suggest that innovations are the commercialization of inventions (idea-to-cash), in simple terms: Innovation = invention + commercialization
Not all I&D graduate to innovations, I&D with economic potentials, solve societal problems or; increases the wellbeing of the society are the target of innovators. Innovation therefore refers to the successful commercialization of I&D. Unlike I&D the criteria for success in innovation are commercial rather than technical. A successful innovation is one that returns the original investment in its development plus some additional returns. The innovation process involves integration of existing technology and inventions to create a new product, process, or system. Hence, innovation represents the important connection between an idea and its exploitation or commercialization. In a world that is changing so fast what companies’ need is not (necessarily) the best practice but a new practice, as such greatest rewards go to companies that create new business model (Hamel, 2001). Wealth according Hamel (2001) is created with mind not (only) resources.
3.2 Phases of Innovation
Traditional economists Schumpeter (1939), Barthwal (2007) and Mariano (2004) break down the process of technology innovation into a sequence consisting of three phases which are discussed below:
a. Invention: Invention is the creation of a novel technology (idea, machine or process), such as the steam engine, the transistor, and the Xerox machine. Inventions occur as a result of human ingenuity and imagination. They occur only sporadically, sometimes happening by chance or through trial and error other times via a formal scientific endeavor. There is usually a lag-time between scientific discoveries and inventions. It may take years to convert science into technology; it may take more years to move an invention to the market as a product or a service. Even though many inventions are generated by creative people and many of them patented only few reach the market place and fewer have lasting impact.
b. Innovation: Innovation represents the important connection between an idea and its exploitation or commercialization. The button line for innovation is the market, which will buy it or ignore it, thereby determining success or failure. In a world that is changing so fast what companies need is not necessarily the best practice but a new practice, as such greatest rewards go to companies that create new business model (Hamel, 2001).
c. Diffusion: Diffusion is defined as the process by which an innovation is adopted and gains acceptance by members of a certain community. A number of factors interact to influence the diffusion of an innovation. The four major factors are the innovation itself; how information about the innovations is communicated; time and the nature of the social system into which the innovation is being introduced (Rogers, 1995).
3.3 Types of innovations
An enterprises can make many types of changes in its methods of work its use factors of production and the types of output that improve its productivity or commercial performance. Studies have identified four types of innovations as follows products innovations, process innovations, marketing innovations and organizational innovations (OECD, 2005).
a. Product Innovation: Is the introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses. It includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics. New products are goods and services that differ significantly in their characteristics or intended uses from products previously produced by the firm. Product innovations related to goods includes products with significantly reduced energy consumption and significant changes in products to meet environment standard and so on.
b. Process Innovation: Is the implementation of a new or significantly improved production or delivery method for the creation and provision of services. It includes significant changes in the equipment and or in the procedures or techniques that are employed to deliver services. It intends to decrease unit costs of production or delivery to increase quality. Production methods involve the techniques, equipment and software used to produce goods or services including installation of new or improved manufacturing technology such as automation equipment, computerized equipment for quality control of production and improved testing equipment for monitoring production.
c. Marketing Innovation: Is the implementation of a new marketing method involving significant changes in product design, packaging, placement, promotion and pricing etc to market. It’s aimed at better addressing customer needs, opening up new markets, or newly positioning a firm’s product on the market and finally intends to increase the firm’s sales.
d. Organizational Innovation: Is the implementation of a new organizational method in the firm’s business practices, workplace organization or external relations. It intended to increase a firm’s performance by reducing administrative costs or transaction cost, improving workplace satisfaction, reducing cost of supplies. In business practices, it involve the implementation of new methods for organizing routines and procedures for conduct of work, implementation of new practices to improve learning and knowledge sharing within the firm and other knowledge to make more easily accessible to others.
4.0 INNOVATION MANAGEMENT
In a world that is changing so fast what companies’ need is not (necessarily) the best practice but a new practice, as such greatest rewards go to companies that create new business model (Hamel, 2001). Wealth according Hamel (2001) is now created with mind not resources.
4.1 Drivers of Innovation
We can conveniently classify drivers of innovation activities especially from organizational perspective into two broad areas indirect otherwise known as external (opportunities) and direct otherwise known as internal (ability to exploit the opportunities) factors. As the names suggest direct drivers are largely under the direct control and manipulation of an organization, in other words firms have the power to make decisions on these factors (Yin, 1985). While indirect drivers are not under direct control even though organizations may try to influence them via proactive strategies such as technology foresight but by their nature they cannot lend themselves to direct control. While there are avalanche of literature on the drivers, few are reviewed below: (Yin, 1985, p.19) based on the aforementioned, internal conceptualization include personnel quality/structure, qualitative leadership, effective idea management, organizational form/cooperation, scale of unit (size); while external drivers include evolving technologies, changing market characteristics/incentives; environmental conditions, collaboration and the role of government. However, only two external (evolving technologies & changing market characteristics/incentives) and two internal (qualitative leadership and effective idea management process) drivers are discussed below:
a. Evolving Technologies: Successful innovations rest on new, improved, incremental or disruptive technologies, for example Ted Turner wed two technological developments – the shoulder-head minicam and more affordable access to satellite transmission to innovate the concept of a continuous news format. Tele-surgery becomes realty after the existence of fibre-optic cable, high speed internet link and robotic arm technology. Similarly, e-business, e-banking, virtual banking and m- commerce innovations are only possible with developments and improvements in a number of technologies.
b. Changing Market Characteristics: In addition to evolving technologies successful innovators capitalize on changing market characteristics such as changes in customers taste, life style, climatic conditions, per capital income, sophistication, national infrastructures etc. for example in addition to minicam and satellite technology. Turner also capitalize on people’s busy life style making it difficult for people to always be at home for the news hour e.g. the six o’clock news in US or the nine o’clock news in Nigeria to innovate the concept of a continuous news format.
c. Qualitative Leadership: Accordingly every single employee deserves the same potential as the most senior person in an organization to influence the destiny of the organization to which they are devoting their lives. Hamel identified three (3) kinds of authority within organizations. I.e. positional, intellectual, and moral. Senior executives are pretty good at wielding positional power but are not always good at wielding intellectual power and moral authority, while we live in a world where it is not clear that people at the top of the organization are smarter than the ones below (Hamel, 2003). Mintzberg (1996) on the other hand observed that there are two types of innovators in organization i.e. rare talented employees that can see the world we can’t’ and those that can get extraordinary performance from average employees. The task of leaders is to allow all categories of employees exhibit their skills; in essence autocratic leadership styles should be eschewed. Hence, equity, team effort, circle/flat organization, distributed authorities, avoid excess workload, additional % of budget to radical ideas/bonuses, simple design, reduces corporate monopoly on funds allocation, tolerate and reward mistakes, only punish inaction should be pursued to institutionalize innovation.
d. Effective Idea Management: Effective idea management process via idea collection/generation through customers, employees, consultants, specialists, competitors, observation, benchmarking, supplies and market intelligence. Keeping ideas (corporate memories) database, to keep and shared ideas not only in text, but pictures, diagram, animation etc. using types of database (such as Distributed processing/distributed database; Object-Oriented Database; On-line Database; and Multidimensional Database), i.e. cross-fertilization of ideas (idea box all variety of ideas are kept in the box and shared via organizational intranet the memories in the Tech Boxes would eventually die if designers didn’t constantly look at the stuff, play with it, and use it in their work). Companies lose what they learn when people leave hence qualitative staff should be motivated to remain. Geographic distance, political, squabbles, internal competition, and bad incentive systems of in may hinder the spread of ideas. Selecting and implementing ideas, is the final stage of idea management. It entails among others evaluating the viability, feasibility, and practicability of the idea.
Conclusively organizations only leverage innovation when they create conducive internal environment via qualitative leadership and idea management process to take the advantage of evolving technologies as well as changing market characteristics.
4.2 Barriers to Innovation
Due to the great contribution of the innovative activities to the enterprises competitiveness and success, it is of great interest to identify the barriers and obstacles that limit the development of innovative activities in firms. Sileshi (2012) identified the following barriers to innovation:
a. Lack of Finance: Lack of finance is one of the most important constraints to innovation (Silva et al., 2007; Lim & Shyamala, 2007). For instance, lack of financial resources appears to be perceived as more important by small firms than large firms while organizational factors are more relevant barriers for large enterprises than small. According to Hall (2002) financial problems are particularly critical in the case of innovation activities due to: innovation projects are riskier than physical investment projects and therefore outside investors require a risk premium for the financing of innovation activities. Secondly, innovators are reluctant to share with outside investor’s (may not invest) information about their innovation. Some innovation projects may not be started, delayed or abandoned because of the risk of bankruptcy and the low value of intangibles in case of liquidation (Gomes, Yaron & Zhang, 2006).
b. High Cost Innovation: Cost of innovation was major important barrier to innovation. Tourigny and Le (2004) found that the high cost of innovation is likely to be perceived as an important hampering factor by firms.
c. Lack of Skill Personnel: Many firms’ managerial and technical skills, which inhibit their effectiveness as well as competitiveness in new technology adoption and retention. The lack of technically qualified personnel has been found to negatively affect the ability of firms to innovate.
d. Inadequate R&D: Empirical evidence showed that, R&D enhances innovation. Thus, without adequate knowledge, information and systemic analysis, via R&D it is even harder to assess potentials and threats of the global business to the companies.
e. Lack of Collaboration: It is becoming more and more difficult to maintain a competitive advantage through internal R&D because of the fast changing environment and the increase of knowledge dissemination and expansion via the internet, Nowadays large multinational companies are looking to generate knowledge externally through acquisitions, venture capital investments and collaborations (Kang & Kang, 2009).
Robson, Paul, Halen, and Bernard, (2009) found that contacts with other firms, either locally or in export markets, appeared to stimulate innovation activity. Firms engage in collaboration in order to complement their internal resources and accordingly team up with partners who control the relevant complementary resources required (Miotti & Sachwald, 2003).
4.3 Benefiting From Innovation
Technology and Innovation leadership in firms does not necessarily result in economic benefits. Tee (1998) argues that the capacity of the firm to appropriate the benefits of investment in technology depends on two factors: (i) the firm’s capacity to translate its technological advantage into commercially viable products or processes (innovation); and (ii) the firm’s capacity to defend its advantage against imitators. We identify some of the factors that influence the firm’s capacity to benefit commercially from its technological innovation as follows:
a. Secrecy is considered by industrial managers to be an effective form of protection, especially for process innovations. However, it is unlikely to provide absolute protection, because some process characteristics can be identified from an analysis of the final product, and because process engineers are a professional community.
b. The Learning Curve in production generates both lower costs, and a particular and powerful form of accumulated and largely tacit knowledge that is well recognized by practitioners. In certain industries and technologies (e.g. semiconductors, continuous processes), the first-comer advantages are potentially large, given the major possibilities for reducing unit costs with increasing cumulative production. However, such experience curves’ are not automatic, and require continuous investment in training, and learning.
c. Complementary Assets, the effective commercialization of an innovation very often depends on assets (or competencies) in production, marketing and after-sales to complement those in technology.
d. Product Complexity, for example previously IBM could rely on the size and complexity of their mainframe computers as an effective barrier against imitation, given the long lead times required to design and build copy products. With the advent of microprocessor and standard software, these technological barriers to imitation disappeared and IBM was faced in the late 1980s with strong competition from IBM ‘clones’, made in the USA and East Asia. Boeing and Airbus have faced no such threat to their positions in large civilian aircraft, since the costs and lead times for imitation remain very high. Managers recognize that product complexity is an effective barrier to imitation.
e. Strength of Patent Protection can be strong determinant of the relative commercial benefits to innovators and imitators. Patents are judged to be more effective than process innovations in protecting product innovation in all sectors except petroleum refining, probably reflecting the importance of improvements in chemical catalysts for increasing process efficiency. It also shows that patent protection is rated more highly in chemical-related sectors (especially drugs) than in other sectors. This is because it is generally more difficult to ‘invent around’ a clearly specified chemical formula than around other forms of invention.
Finally, we should note that firms can use more than one of the above factors to defend their innovative lead. For example, in the pharmaceutical industry, secrecy is paramount during the early phases of research, but in the later stages, research patents-where much basic information is disclosed-become critical. Complementary assets, such as global sales and distribution, become more important at the commercialization stage.
5.0 TECHNOLOGY & INNOVATION MANAGEMENT (T&IM)
Technology Management (TM), alternatively referred to as Management of Technology (MOT) was set into motion when man invented the wheel, now however, has become an organized and systematic discipline. Thamhain (2005, p.6) view MoT as the art and science of creating value by using technology together with other resources of an organization. According to National Research Council (1987) MoT links,engineering,science and management disciplines to plan, develop and implement technological capabilities to shape and accomplish the strategic and operational goals of an organization. Table 3 describes the complementary roles of science/engineering vis-à-vis management disciples in T&IM, it is evident no one discipline will achieve sustainable success in T&IM without the other.
Table 3: Roles of Science/Engineering vs Management Disciplines in Technology & Innovation Management
Science & Engineering Disciplines
Management Disciplines
Areas
Biology, Chemistry, Computing, Electrical, Geology, Mechanical , Physics, etc.
Accounting, Economics, Entrepreneurship, Finance, Marketing, Sociology etc.
Tasks
Inventions & Discoveries
Innovation & Diffusion
Method
Experiments & Simulation
Survey & Focus Group Analysis
Tech Resource
Machines and to a lesser extend manpower
Manpower and Method
Tech Product
Development/improvement
Feasibility studies & Organizational alignment
Innovation
Product & Process
Marketing & Organizational
Outcome
Technical (Creation)
Commercial
As TM embraces several interconnected issues ranging from policy planning at the national to strategic planning at the firm level, it calls for decisions and result-oriented actions at the macro- as well as micro-levels and a effective macro-micro linkage as described on table 4.
Table 4: Scope of Technology & Innovation Management
Macro Level
Micro Level
Focus
Economic Growth & Development
Profit
Scope
National/Industrial Technological capabilities
Firms Technological Capabilities
Industry
Industry Regulators
Industry Players
Competitors
Other Countries
Other firms in the industry
Task
Creating Enabling Environment
Competing in the Operating Environment
Institutions
Gov’t Ministries, Directories & Agencies
Individual Firms
Both macro and Micro technology management seek to raise economic efficiency. Micro TM is the basis for macro TM, while the latter provides guidelines and an environment for the former. Consistency among these two levels of management is essential, but institutional mechanism will largely determine whether they are effectively combined. While macro-support could catalyze changes, the real actions must take place at the industry level.
5.1 Importance of Technology & Innovation Management
A number of factors meant that T&IM is of crucial importance to individuals, communities, organizations and countries. These factors include mankind ability to understand, dominate and control the environment, national competitiveness, etc. a number of these factors are discussed below:
a. Mankind Ability to dominate the Environment: Usually, man conquers nature, changes nature, and attains freedom from nature through invention and innovation. With technological invention and innovation, mankind has pulled itself from the mud huts of nut and berry gatherers through the Stone, Bronze, and Iron Ages, the Industrial rev olution, and into what has been called Atomic Age, Electronic Age, Computer Age, the Second Industrial Revolution, the Third Industrial Revolution, Internet Age and the emerging Internet of Things (IoTs) Age etc. So both invention and innovation are important weapons attaining freedom from nature, and are the important symbols of mankind’s civilization and progress.
b. National Competitiveness: T&IM is also critical for national competitiveness; this is because where countries are not in a position to engage effectively in innovation activities, they are inevitably dependent on other countries innovated products, imported by hard currency from developed and other developing countries. This is typically holds true for countries like Ethiopia and Nigeria. It is not by coincidence that countries such as US, Japan, South Korea, Canada etc. that leverage T&I are most developed while countries that score low in exploiting T&I are underdeveloped. Under the later situation nations become victims not beneficiaries of T&I. As such full exploitation of T&I offers boundless potential for improving economies of developing nations. Recently Japan came up with the policy of using robotic technology to circumvent the projected manpower shortfall for the optimal performance of the economy.
c. Industrial Impact: One hundred years ago, in 1911, Schumpter (1961) argued that technological change is the major factor shaping the growth, decline and structure of industries across the world. Specifically he professed that technology is the ultimate force behind the emergence, evolution, fusion, and disruption of industries over time, table 5 provides examples to support this assertion.
Table 5: Technology & Industry Change
S/N
Type of Influence
Technologies
Industry/Industries
Examples
1
Emergence
Handsets and Wireless
Telecommunications
Mobile Phone
2
Evolution
Internet & Extranet
Banking and Education
E-Banking & E-Learning
3
Fusion
Intranet and Extranet
Banking & Insurance
Universal Banking
4
Disruption
Satellite Dish and TV
Entertainment
Cinema
d. Technology’s Omnipresence: T &I have such a pervasive influence on individuals, communities, firms, industries, nations and even supernatural institutions. As highlighted earlier the richest people and firms made their fortunes via T&I, this also applies to nations and communities. At individual and family levels, quality of life and progress are functions of ability to capitalize on T&I capabilities.
e. Ambivalent Impacts: In spite of all the aforementioned T&I impact is not always positive. In fact significant number of business failures are attributed to inability of inventors/innovators to translate technological creativity into profitable operation as a result T&I had led to spectacular corporate loss not only (merely) wealth creation.
f. Strategic Importance: Technology has become a key strategic element (Porter, 1985) and hence the need for new management approaches to synchronise technology with business strategy (Mitchel, 1988). The MIT commission on industrial productivity concluded as early as 1990 that:
For too long business schools have taken the position that a good manager could manage anything, regardless of its technological base. It is now clear that view is wrong. While it is not necessary for every manger to have a science or engineering degree, every manager does need to understand how technology relates to the strategic positioning of the firm to evaluate alternative technologies and investment choice, and how to shepherd scientific and technical concepts through the innovation and production processes to marketplace (Dertouzos, Lester, & Solow, 1990).
6. 0 TECHNOLOGY & INNOVATION THEORIES
6.1Technology Theories
There are basically two extreme schools of thoughts about technology theory, the deterministic and instrumentalist theory. Surry (1997) summarizes the major distinction between these schools of thoughts.
a. Technology Instrumental, view technology as a mere tool. The instrumentalist often cite the knife as an example, a tool that can be used for either good or evil, depending upon the intentions of the person employing the tool. Hence they view technology as a tool, largely under human control, that can be used for either positive or negative purpose. Instrumentalist suggest social change and humans need as key to success in the marketplace, in essence no matter how good a technology is, unless it satisfy human need it’s not likely going to succeed.
b. Technological Determinists view technology as an autonomous force, beyond direct human control, and see technology as the prime cause of social change and global happening. Determinist see technology as the most powerful force in changing individuals, societies, communities, national and the entire universe, as such the determinists view a very powerful and well design technology as essentially having a significant impact in the marketplace a sort of product concept ideology.
c. Socio-Technical Theory (STT) argued that organizational success relies on firms’ ability to achieve good blend between its social and technical sub-systems (French & Ball, 1999). In its simplest form the theory argued that organizations consist of two interdependent sub-systems: a social system and a technical system, and changes in one system significantly affect changes in the other (French & Ball, 1999). The social-sub system comprises organizational employees as well as their knowledge, needs, interactions and commitments. While the technical sub-system of consist of tools, techniques, procedures and knowledge used by organization (Kontoghiorghes, 2005).
6.2 Innovation Theories
Four of the theories discussed by Rogers are among the most widely-used theories of Innovation Diffusion as follows:
a. Innovation Decision Process Theory states that diffusion is a process that occurs overtime and can be seen as having five distinct stages, thus Knowledge, Persuasion, Decision, Implementation, and Confirmation (Rodgers, 1995). According to this theory, potentials adopters of an innovation must learn about the innovation, be persuaded as to the merits of the innovation, decide to adopt the innovation.
b. Individual Innovativeness Theory states individuals who are predisposed to being innovative will adopt an innovation earlier than those who are less predisposed (Rogers, 1995). Figure 6 shows the bell shaped distribution of an Individual Innovativeness and the percentage of potential adapters theorized to fall into each category. On one extreme of the distribution are the Innovators. Innovators are the risk taker sand pioneers who adopt an innovation very early in the diffusion process. On the other extreme are the Laggards who resist adopting an innovation until rather late in the diffusion process, if ever.
INNOVATION EARLY EARLY LATE LAGGARS
2.5% ADOPTERS MAJOTITY MAJORITY 16%
13.5% 34% 34%
c. Theory of Rate of Adoption states that innovations are diffused over time in a pattern that resembles an s-shape curve (Rogers, 1995). Rate of Adoption theorizes that an innovation goes through a period of slow, gradual growth before experiencing a period of relatively dramatic and rapid growth. An example of how rate of adoption might typically be presented by an s-curve is shown in figure 7. The theory also states that following the period of rapid growth, the innovation’s rate of adoption will gradually stabilize and eventually decline.
Number or percentage
of Adopters
Period of
Rapid Growth
Time
Figure 7: S-Curve Rate of Adoption
d. Theory of Perceived Attributes states that potential adopter’s judge an innovation based on their perceptions regarding five attributes of the innovation (Rogers, 1995). These attributes are: Trialability; Observability; Relative Advantage; Complexity; and Compatibility. The theory holds that an innovation will experience an increased rate of diffusion if potential adopters perceive that the innovation:
(1) Can be tried on a limited basis before adoption.
(2) Offers observable results.
(3) Has an advantage relative to other innovations (or the status quo)
(4) Is not overly complex
(5) Is Compatible with existing practices and values.
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