The New Challenges of The Management of Technological Innovation
The Challenging nature of industry Industry continually change and can alter radically in one generation, it is necessary managers to understand the history shaping its organization and conduct. One of the forces with significant impact on industrial development is technologies, and in a depth analysis technological change is vital for effective management.
Technological waves of development. Since the industrial revolution it has been possible to identify historical waves of intense technological change (technological revolution) characterized by rapid economic grow opportunities and radical social change (freeman and perez, 1988). Factor industries are typified by continually reduce cost, readily available supply and an impact across wide areas of the economy. As the concept of waves of economic activity implies, period of economic growth are followed by recession and depression. The theory of changing techno economic paradigms and emphasizes long time horizons in both the development and diffusion of technologies and the economic and social return from them.
The knowledge economy. There are a numbers of drivers behind the move to the knowledge economy. First, the increasing knowledge intensity of the process of generating, producing, and commercializing new boot and service. Secondly, the almost exponentially extended capacity of information and communication technologies to store, process, and transfer vast amounts of information. Thirdly, the process of globalization.
Knowledge production occurs in an increasing variety of organization, in firm and consultancies as well as traditional universities, and in an increasing number of ways. Consequently, the form of the links between knowledge producing organization become important (and may follow pattern different from those in the past). Our entrepreneurial bio technology firm was created by a new waves of technological development. its operation are encourage by a supportive national innovation system. Its grow relies on new source of finance organization and management.
Business and innovation system and network. Business and innovation system and network are themselves changing with international transfer of good practice, seen, for example in the transfer of japan production and new product development method to the west and use R&D management practice to countries like japan, Korean and Taiwan.
National innovation system. The NIS approaches suggest that technological innovation is both more frequent and better managed, leading to more substantial national competitive advantage, when the element of the broader environment surrounding firms activities are well articulate into a system, than in situation where each element work largely in isolation. Regional System of Innovation. The geographical proximity or firms developing and using similar and related products and technologies produces positive sum gains for business and innovations. There may be regional differences in the type and level of governments support, source of science, technology and finance, industrial structures, and indeed innovation supporting culture.
The changing nature of management. New industrial structure and organizational forms require new ways of managing innovative flexible and imaginative management is needed to deal with the wide range of challenge facing firms and government in technology, organization, finance, skill and in their increasingly complex and intimate external links. There is major contrast between old and new paradigms of management that is strategy, learning knowledge and trust.
The changing nature of the innovation process. Nature of innovation process is changing, strategic integration between firm is increasingly global and occurs across technological market and financial areas. Technological integration occurs in various forms. This increased strategic and technological innovations has as its aim improvements in competitiveness trough the timeline of good and services.