Innovation, Technology, and Knowledge Management Series Editor Elias G Carayannis, George Washington University, Washington D.C., USA For further volumes: http://www.springer.com/series/8124 Dimitris G Assimakopoulos Elias G Carayannis • Rafiq Dossani Editors Knowledge Perspectives of New Product Development A Comparative Approach Editors Dimitris G Assimakopoulos Grenoble Ecole de Management 12 rue Pierre Sémard, BP 127 Grenoble 38003, France dimitris.assimakopoulos@grenoble-em.com Rafiq Dossani Shorenstein Asia Pacific Research Center Stanford University Encina Hall, Room E301 Stanford, CA 94305-6055, USA dossani@stanford.edu Elias G Carayannis School of Business The George Washington University Suite 515C, Funger Hall 2201 G Street NW Washington, DC 20052, USA caraye@gwu.edu ISBN 978-1-4614-0247-3 e-ISBN 978-1-4614-0248-0 DOI 10.1007/978-1-4614-0248-0 Springer New York Dordrecht Heidelberg London Library of Congress Control Number: 2011937233 © Springer Science+Business Media, LLC 2012 All rights reserved This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com) Series Foreword The Springer book series Innovation, Technology, and Knowledge Management was launched in March 2008 as a forum and intellectual, scholarly “podium” for global/ local, transdisciplinary, transsectoral, public–private, and leading/“bleeding”-edge ideas, theories, and perspectives on these topics The book series is accompanied by the Springer Journal of the Knowledge Economy, which was launched in 2009 with the same editorial leadership The series showcases provocative views that diverge from the current “conventional wisdom,” that are properly grounded in theory and practice, and that consider the concepts of robust competitiveness,1 sustainable entrepreneurship,2 and democratic capitalism,3 central to its philosophy and objectives More specifically, the aim of this series is to highlight emerging research and practice at the dynamic intersection of these fields, where individuals, organizations, industries, regions, and nations are harnessing creativity and invention to achieve and sustain growth Books that are part of the series explore the impact of innovation at the “macro” (economies, markets), “meso” (industries, firms), and “micro” levels (teams, We define sustainable entrepreneurship as the creation of viable, profitable, and scalable firms Such firms engender the formation of self-replicating and mutually enhancing innovation networks and knowledge clusters (innovation ecosystems), leading toward robust competitiveness (E.G Carayannis, International Journal of Innovation and Regional Development 1(3), 235–254, 2009) We understand robust competitiveness to be a state of economic being and becoming that avails systematic and defensible “unfair advantages” to the entities that are part of the economy Such competitiveness is built on mutually complementary and reinforcing low-, medium-, and hightechnology and public and private sector entities (government agencies, private firms, universities, and nongovernmental organizations) (E.G Carayannis, International Journal of Innovation and Regional Development 1(3), 235–254, 2009) The concepts of robust competitiveness and sustainable entrepreneurship are pillars of a regime that we call “democratic capitalism” (as opposed to “popular or casino capitalism”), in which real opportunities for education and economic prosperity are available to all, especially – but not only – younger people These are the direct derivative of a collection of top-down policies as well as bottom-up initiatives (including strong research and development policies and funding, but going beyond these to include the development of innovation networks and knowledge clusters across regions and sectors) (E.G Carayannis and A Kaloudis, Japan Economic Currents, p 6–10 January 2009) v vi Series Foreword individuals), drawing from such related disciplines as finance, organizational psychology, research and development, science policy, information systems, and strategy, with the underlying theme that for innovation to be useful it must involve the sharing and application of knowledge Some of the key anchoring concepts of the series are outlined in the figure below and the definitions that follow (all definitions are from E.G Carayannis and D.F.J Campbell, International Journal of Technology Management, 46, 3–4, 2009) • The “Mode 3” Systems Approach for Knowledge Creation, Diffusion, and Use: “Mode 3” is a multilateral, multinodal, multimodal, and multilevel systems approach to the conceptualization, design, and management of real and virtual, “knowledge-stock” and “knowledge-flow,” modalities that catalyze, accelerate, and support the creation, diffusion, sharing, absorption, and use of cospecialized knowledge assets “Mode 3” is based on a system-theoretic perspective of socioeconomic, political, technological, and cultural trends and conditions that shape the coevolution of knowledge with the “knowledge-based and knowledge-driven, global/local economy and society.” • Quadruple Helix: Quadruple helix, in this context, means to add to the triple helix of government, university, and industry a “fourth helix” that we identify as the “media-based and culture-based public.” This fourth helix associates with “media,” “creative industries,” “culture,” “values,” “life styles,” “art,” and perhaps also the notion of the “creative class.” Series Foreword vii • Innovation Networks: Innovation networks are real and virtual infrastructures and infratechnologies that serve to nurture creativity, trigger invention, and catalyze innovation in a public and/or private domain context (for instance, government–university–industry public–private research and technology development coopetitive partnerships) • Knowledge Clusters: Knowledge clusters are agglomerations of cospecialized, mutually complementary, and reinforcing knowledge assets in the form of “knowledge stocks” and “knowledge flows” that exhibit self-organizing, learning-driven, dynamically adaptive competences and trends in the context of an open systems perspective • Twenty-First Century Innovation Ecosystem: A twenty-first century innovation ecosystem is a multilevel, multimodal, multinodal, and multiagent system of systems The constituent systems consist of innovation metanetworks (networks of innovation networks and knowledge clusters) and knowledge metaclusters (clusters of innovation networks and knowledge clusters) as building blocks and organized in a self-referential or chaotic fractal knowledge and innovation architecture (Carayannis 2001), which in turn constitute agglomerations of human, social, intellectual, and financial capital stocks and flows as well as cultural and technological artifacts and modalities, continually coevolving, cospecializing, and cooperating These innovation networks and knowledge clusters also form, reform, and dissolve within diverse institutional, political, technological, and socioeconomic domains, including government, university, industry, and nongovernmental organizations and involving information and communication technologies, biotechnologies, advanced materials, nanotechnologies, and next-Generation energy technologies Who is this book series published for? The book series addresses a diversity of audiences in different settings: Academic communities: Academic communities worldwide represent a core group of readers This follows from the theoretical/conceptual interest of the book series to influence academic discourses in the fields of knowledge, also carried by the claim of a certain saturation of academia with the current concepts and the postulate of a window of opportunity for new or at least additional concepts Thus, it represents a key challenge for the series to exercise a certain impact on discourses in academia In principle, all academic communities that are interested in knowledge (knowledge and innovation) could be tackled by the book series The interdisciplinary (transdisciplinary) nature of the book series underscores that the scope of the book series is not limited a priori to a specific basket of disciplines From a radical viewpoint, one could create the hypothesis that there is no discipline where knowledge is of no importance Decision makers – private/academic entrepreneurs and public (governmental, subgovernmental) actors: Two different groups of decision makers are being addressed simultaneously: (1) private entrepreneurs (firms, commercial firms, academic firms) and academic entrepreneurs (universities), interested in optimizing knowledge management and in developing heterogeneously composed viii Series Foreword knowledge-based research networks; and (2) public (governmental, subgovernmental) actors that are interested in optimizing and further developing their policies and policy strategies that target knowledge and innovation One purpose of public knowledge and innovation policy is to enhance the performance and competitiveness of advanced economies Decision makers in general: Decision makers are systematically being supplied with crucial information, for how to optimize knowledge-referring and knowledge-enhancing decision-making The nature of this “crucial information” is conceptual as well as empirical (case-study-based) Empirical information highlights practical examples and points toward practical solutions (perhaps remedies); conceptual information offers the advantage of further-driving and further-carrying tools of understanding Different groups of addressed decision makers could be decision makers in private firms and multinational corporations, responsible for the knowledge portfolio of companies; knowledge and knowledge management consultants; globalization experts, focusing on the internationalization of research and development, science and technology, and innovation; experts in university/business research networks; and political scientists, economists, and business professionals Interested global readership: Finally, the Springer book series addresses a whole global readership, composed of members who are generally interested in knowledge and innovation The global readership could partially coincide with the communities as described above (“academic communities,” “decision makers”), but could also refer to other constituencies and groups Washington, DC Elias G Carayannis Preface New Product Development (NPD) is about the ideation, formulation, and implementation of new and superior solutions in the market on a cost/benefit basis It relies upon and leverages people, culture, and technology, and has both a universality as well as a uniqueness in its texture and impact (consider, for instance, e-books, smart phones and electric vehicles as examples), and, for that matter, it is often driven by twenty-first-century innovation workshops, such the IDEO labs in California or other such creativity hubs as stand-alone entities and/or units within corporate structures The applications and implications of NPD tools, methodologies, and techniques in a world where change is not just constant, but accelerating (i.e., speed and acceleration of innovation), can be instrumental and truly decisive and even disruptive of markets and technological trajectories with substantial value creation potential NPD can help trigger technology lifecycles that may result in significant new dominant designs and standards that may open new socioeconomic vistas, making sustainable and profitable solutions that were previously considered technically infeasible and/or economically nonviable In particular, in the context of the race for reducing the global economy’s carbon footprint to ensure that our planet (and everyone on it) has a future, NPD may be a truly strategic “trump card,” as it may change the socio-technical and sociopolitical calculus regarding approaches that may be critically needed In this sense, NPD may act as an enabler of positive disruption and bottom-up, grass-roots-driven sociotechnical change that may help overcome and leapfrog incumbent technological regimes and economic standards and practices that act against the common good The old truisms that being close to a market is critical for understanding a market, and that understanding a market is critical for innovation of that market, are still true However, as marketplaces become increasingly global due to digitization (e.g., the market for iTunes), “closeness” to a market acquires new meanings that include understanding many key markets as well as the ability to abstract the common elements of each In this sense, NPD leverages globalization and glocalization trends to trigger, as well as catalyze and accelerate, innovation, diffusion and adoption of innovations at local, as well as regional and transnational, levels ix Index A Abilities, capitalization of, 86 Absorptive capacity, 171 Academia-industry collaboration, in Chinese biotechnology industry, 276–279 biopharmaceutical spin-offs, establishment of, 276, 278 patents application, 278 universities and public research institutions, 276, 278 Academic patents, 264 Actor-based component, of SIC, 162–163 Adherence to budget objectives, 40 Adherence to schedule objectives, 40 Advocatory state, 235–236 AGES consortium, 193 Agile enterprise model, 147, 151 All India Council for Technical Education (AICTE), 232, 243 American Society for Testing and Materials (ASTM), 300 AMS business unit, 52, 56, 72, 74 Analog designer, 66 Articulated knowledge See Codified knowledge Asia manufactured goods, export of, 226 scientific and technological knowledge, creation of, 211 U.S patent applications, 210 Asset bubble, collapse of, 205 Assortative matching, 173 ASTM See American Society for Testing and Materials (ASTM) Autonomous teams, 33 Axel co-transformation process, 259 B Back office operations, 81 Bayh-Dole (BD) Act objective, 256 significance, 256 and university technology transfer regimes, 255–256 background, 256–257 inventor ownership model, 261–262 inventor-TLO relationship, 258–260 university TLO, 257–258 weaker ownership rights models, 265–266 BD Act See Bayh-Dole (BD) Act Behavioral characteristics, of NPD teams, 40 Behavior-based profiles, 146, 149, 150 Beijing cluster, 275, 276 Benchmarking, 137 Benevolence-based relationships, establishment of, 46 Biopharmaceutical biotechnology, 273 Biopharmaceutical spin-offs, establishment of, 276 Biotechnology industry development in, 271 early phase, 271 fundamental characteristics, 271 Biotechnology innovation, in China, 284–286 Biotechnology knowledge creation, international companies’ role in, 280–281 Biotechnology patents applications and awards, in China, 275 Boundary-spanning activities, 20, 35, 37, 39, 42, 46 Brazil, 29, 80, 228 317 318 Bureaucratic team, 33 Business unit, problem of, 98–99 C CABE See Central Advisory Board of Education (CABE) Capabilities accumulation, exploitation, 32 CapGemini, local new service development teams in, 77 historical location, 79 main activities, 79 origination, 79 relocation, impact of, 79 development process, for new products, 79–80 innovation and development value chain, organization of, 80 local development teams, strengthening of, 82, 86–93 professions/jobs, impact on, 81–82 Rightshore™ model, 80–81 V-model, use of, 79 C-B patents See Cohen-Boyer (C-B) patents Central Advisory Board of Education (CABE), 230 Central connectors, 52, 56, 59, 69, 71, 74, 130 Chain upgrading, Champions, 150 Child Restrain System (CRS), 304 China, 4, 11, 27, 209, 210, 228, 229, 234, 248, 289 China Toy Association (CTA), 293 Chinese biotechnology clusters, 276 Chinese biotechnology industry, cooperative innovation in academia-industry collaboration in, 276–279 biotechnology innovation, 284–285 policy suggestions and international collaborations, 286 biotechnology patents applications and awards, 275 brief history, 273–274 Chinese biotechnology clusters, 276 data and methodology, 272–273 facts, 274 geographic distribution, 275, 277 innovation system, challenges of, 283–284 international companies, role of, 280–281 literature review, 271–272 returnees, role of, 281–283 Index Chinese biotechnology patents, in USPTO, 277 Chinese government-pushed innovation system, 284 Chinese partners and western partners, complementary competencies between, 282 Chinese toy, imports of, 289 “Choose and Focus,” 209 ‘Chun Hui Initiative,’ 281 Chun Hui Programme, 274 Cisco Systems, 263 Clark, James, 263 Clear goals, establishment of, 46 Clinical knowledge flows, 283 Cluster analysis industrial regions, 111–113 k-means cluster analysis, 111, 112 lagging regions, 113–114 MNE distribution in, 120 regional leaders, 114–117 Cluster platforms, 163 Co-construction, an environment management blueprint, 156–157 Codified knowledge, 103 vs tacit knowledge, 104 Cohen-Boyer (C-B) patents, 257–258 Cohesion, meaning of, 40 Collaboration level and related limits, 84–85 Collaborative Business Experience, 81 Collaborative development projects, 78 Collaborative innovation network, 271, 272, 284 Collaborative projects individual aptitudes to, 90 management, 96–98 Collective abilities, 89–91 Collective competence, 125–127, 130–134 attributes, 127 collective memory, 127 common frame of reference, 127 common language, 127 subjective commitment, 127 consumer needs, planning ahead for, 134 customer, serving, 132 in high-tech industries, 138 individual factors, 127 interorganizational factors in, 134–139 knowledge absorption and capitalization, 132 local resources, usage and contribution of, 133–134 ongoing learning and skills development, 132–133 organizational factors, 127 technology improvement, 133 to think and to manage globally, 131 Index Collective learning, 86 Collective memory, 127 Collective performance, effects of, 137 Color-coded responses, 152–153 Columbia University, 258, 259 Commercialization, 256–262 Communication, 147–148 pivotal role, 156 practices, 45–46 process, 37 Community of practice (CoP), 53–56 Comparative advantage, 56, 106 Competence collective, 126–127, 130–134 in high-tech industries, 136–138 interorganizational competence, emergence of, 137–139 interorganizational factors in, 134–139 dynamic, 139 environmental, 127–128 identification, 129–130 static, 139 for “Technological Europe” of tomorrow, 129–130 Competitive advantage, 3–5, 51, 54, 83, 87, 89, 203, 214, 217, 271 relational view, 54 for US biotechnology firms, 271 Competitive cluster development policy, 137 Competitiveness poles, 78, 83, 84, 92–94 Composite innovation indicators, Composition, meaning of, 34 Conceptual approach, for SIC establishment, 166, 172–173 Concurrent engineering, 299 Conflict, concept of, 38 Consensus decision making, 38 Consultative decision making, 38 Consumer Product Safety Commission (CPSC), 289 Consumption model, Contextuality, 104–105 Contingent corporate governance, of Japan, 205 Cooperation and interorganizational competence, 139 Co-operation, emergence of, 161 Cooperation factor, 12 Cooperative innovation in Chinese biotechnology industry, 271–286 Co-opetition, concept of, 128 Coordination, meaning of, 37 Coordinator/partner social capital, 36 CoP See Community of practice (CoP) 319 Corporate group, leadership and mobilization of, 154 CPSC See Consumer Product Safety Commission (CPSC) Creative dynamics, 147 Creativity functional mindset approach, 146 interactionist approach, 146 manager’s guidebook to, 149 poetic approach, 146 “Creativity, Entrepreneurship, and Organizations of the Future,” 149 CRS See Child Restrain System (CRS) CTA See China Toy Association (CTA) Cybird, 220 D Decision making consensus, 38 consultative, 38 democratic, 38 Declarative memory, 127 Dedicated Road Infrastructure for Vehicle Safety (DRIVE), 188, 190 Dedicated short-range communication (DSRC), 192 Degree centrality, 69 Democratic decision making, 38 Denmark, 264 biotechnology patents in, 280 Department of Transportation, 193 Deutsche Telekom, 191 Development process, 37 for new products, 79–80 Diamond vs Chakrabardy Supreme Court decision (1980), 257 Digital Equipment, 189 Direct contractual co-operation, 163 Directive leadership, 42 Disruptive innovation, 177 Distinctive competence, 98 development, 91–92 Distributed delivery framework, 81, 93 Distributed innovation, 51–52 Diversity, 34, 37 Domestic knowledge network, integration in, 282–283 Domestic research projects, engagement in, 283 DRIVE See Dedicated Road Infrastructure for Vehicle Safety (DRIVE) DSRC See Dedicated short-range communication (DSRC) Dynamic capabilities, definition of, 320 Dynamic competency vs static competency, 139 Dynamic drifting/exploration stage, 190 Dynamic interactive capabilities, E East Asia, 217 Economic growth in India, 225 and technical change, Education system, 233–234 differing roles of state, 237 in India, 230–232 quality, 235–238 EE5, software exports in, 229 Efficiency, meaning of, 40 Electronic GPS-based truck toll system, 177–194 Electronic road tolling systems, 178 Electronic toll collection (ETC) systems, 188 components, 188 institutional discontinuities and, 192 Elite institutions, 245–246 Embeddedness, meaning of, 102 Embryological biotechnology, 273 Employees training, on product safety, 299–300 Environmental competence, 125, 126 common development and management principles, 127–128 co-opetition, concept of, 128 definition, 128, 138 management, 128 Environmental innovation, 217–219 EPO See European Patent Office (EPO) Equity value, rise of, 202 Ernst & Young’s consulting activities, 79 ESPRIT, 190 Essilor model, 147 Estonian Business Register database, Estonian Community Innovation Survey IV data, ETC systems See Electronic toll collection (ETC) systems Euclidian distance, 60–62, 65 EU Commission, 191 EU Industrial R&D Investment Scoreboard (2005), 110 EU members, 272 biotechnology patents in, 280 EUREKA, 190 Europe, 52, 264, 289 broadband access via fiber optic networks, 217 Index inventor ownership systems in, 264 regional embeddedness and MNEs in clustering European regions, 111–117 industrial regions, 112–113 lagging regions, 113–114 methodological approach, 108–111 regional clusters, matching of, 117–120 regional leaders, 114–117 European Committee for Standardization, 188 European Court, 191 European evidence, of NPD See New product development (NPD) European Patent Office (EPO), 112, 114, 121 Eurostat regional database, 110 Evolutionary economics, innovation in, 103 Exchange of knowledge, 161 Expertise, 77 Explicit knowledge See Codified knowledge Exploitation, of capabilities, 32 Exploration, of new opportunities, 32 External and internal nodes and linkages, 70–72 Externalization of manufacturing as strategy, in Japan, 209–210 F Facilitative leadership, 42 Factor analysis, 11 of innovation indicators, 12–15 Factor loadings, 11 Failure Mode Effect Analysis (FMEA), 290, 293 Familiarity vs fit, of innovation project, 182 Fault Tree Analysis (FTA), 290, 293, 304–305 Federal Cartel Office, 193 Federal Ministry of Transport, 192 FFE See Fuzzy front end (FFE) Fiber, 217 Field test, for new products, 303–304 Firm(s) capabilities, innovative behavior data and method, 7–12 framework, 5–7 indicators, innovation indicators, factor analysis of, 12–15 innovative behavior across sectors, differences in, 15–20 and path dependency, 2–5 (see also Path dependency) meaning, regional embeddedness, indicators and variables for, 109 Index regional environment, embeddedness in, 107 supra-regional environment, embeddedness in, 107 Firm-level innovation performance, Firm level radical, definition of, 183 FMEA See Failure Mode Effect Analysis (FMEA) Foreign awardees, of biotechnology patents in China, 281 Foreign-owned firms, 10 Foreseeable misuse and abuse analysis, 303 Formal knowledge, on biotechnology, 282 Formative investigation, 150 Framework contracts, 163 France, 188 biotechnology patents in, 280 semiconductor company in, 52 Frontier knowledge carriers, 284 Front office operations, 81 FTA See Fault Tree Analysis (FTA) Functional mindset approach, creativity in, 146 Functional teams, 32 Functional upgrading, Fuzzy front end (FFE), 185 of NRI process, 190–191 dynamic drifting/exploration stage, 190 formative prototype development, 190 NRI-FFE-project formation, 190 NRI-OR, 190 P&L cycle, and transfer to realization, 190–191 G Generativity, 150 Geometry Engine, 263 German biotechnology industry, development of, 271 Germany, 188, 189, 191 biotechnology patents in, 280 electronic road tolling in, 178 SAP of, 228 Global network, market knowledge flows in, 282 Global projects, individual aptitudes to, 90 Global radical, definition of, 183 Global services sector, in India, 227–228 Google, 241 Gordon Conference, 258 Government-aided non-profit institutions, 234–235 GPS-based systems, 192 GPS/GSM/DSRC systems, 192 Graduate Aptitude Test, 233 “Gray” technology transfer, 260 321 Greece, 217 Grenoble district and innovation, 94 Group dynamics, 151 GSM technology, 191 ‘Guanxi’ activities, 284 H HACCP See Hazard Analysis and Critical Control Point (HACCP) Harvard Business Review, 149 Hazard Analysis and Critical Control Point (HACCP), Heavyweight teams, 32–33 Hewlett Packard, 51 Higher education system, 226–227, 233–234, 241–242 High-tech industries collective competence in, 136–137 emergence and reinforcement, 138 innovation management in, 143 intraorganizational performance for, 137, 138 High Technology R&D Programme, 273 High velocity markets, dynamic capabilities in, 55 Holistic categorization scheme, for radical innovation, 179–184 concept, 181 content/object dimension, 179 context/subjective dimension, 179, 181 familiarity vs fit, 182 firm level radical, 183 global radical, 183 incremental innovation, 182 industry level radical, 183 innovation project, impact of, 181 intensity dimension, 179 macro level perspective, 181–182 micro level perspective, 181–182 nation level radical, 183 normative dimension, 179 performance measurement, 180 process dimension, 179 radical concept, 183 radical impact, 183 radical realization, 183 realization, 180–181 total project-radicalness matrix, 183–184 Human capital, 228 development, 202 path dependency in, 215–216 Human resources, 99, 135, 171, 282 management, 91, 93 Hybrid team, 33 322 I IBM, 51 IITs See Indian Institutes of Technology (IITs) Imagination approach, 147 Immature environment vs mature environment, 238 Implicit knowledge See Tacit knowledge Incremental innovation, 177, 182–183 Independent innovation, 178 India drug discovery and development process, specialization in, 282 global services sector, success of, 227–228 knowledge economy, workforce for, 225 data, 241 discussion, 243–249 education, quality of, 235–238 education system, 230–232, 247–248 findings, 241–243 higher education degree, 233–234 IITs, importance of, 231–232 methodology, 238–241 private providers, 234–235 software exports, from developing countries, 229 state, role of, 230, 232 services sector in, 225 telecommunications services, 225 Indian Institute of Management, 18 Indian Institutes of Technology (IITs), 231, 245 importance, 231–232 Individual competence, 125, 126, 135, 136 Individual innovation behavior, 148 interdependent systems, outcome of, 148 leader behavior profiles, 149 leader’s role in, 148–150, 152 member-follower, usage by, 150–151 vs self-leadership capabilities, 151 supervisors role in, 149 vs systematized problem-solving, 151 Industrial abilities, 97 Industrial environment, 109–110 of industrial regions, 112 of lagging regions, 113 of regional leaders, 114 Industrial policy, 214 Industrial regions, 111–113 industrial environment, 112 market environment, 113 MNE characteristics, 119 public research and higher education environment, 113 Industrial research contracts, 170 Index Industry level radical, definition of, 183 Informal knowledge, on biotechnology, 282 Informal network, scientific knowledge flows in, 282 INITIATIVE, 192 Innovation, 77, 144, 147, 203 barriers, 12, 13, 17 characteristics, 103–104 context specificity, 104–105 cooperation, 9, 13, 17, 21 definition, 180 development, 146, 147 and development value chain, 80 environmental, 217–219 in evolutionary economics, 103 generation process, 146 and Grenoble district, 94 incremental, 182 independent, 178 macro level perspective, 181–182 management, 143 co-construction, as environment management blueprint, 156–157 communication, pivotal role of, 156 corporate group, leadership and mobilization of, 154 leader-member relationship, 148–151 member-individual, management of, 154–155 methodology guide-marks, 152–153 recognition and reward, affect-based management of, 155 relational exchanges management, 144–148 research problem, 151–152 tools tailored to, 144 variable time courses, management of, 153–154 work organization, 155–156 micro level perspective, 181–182 multi-territoriality, 105 networks, 103 in new firms, 220 opportunities in new industries, 217–220 processes, 178 project management, 145 radical (see National radical innovation) social, 177 strategies, 205–210 categories, 214 institutional framework, 201 of Japanese firms, 202 support, 146–148 technological, 177, 180 Index U.S patents in biotechnology, 213 information and communications technology, 213 nanotechnology, 213 renewable energy, 213 Innovation ability individual, collective and institutional abilities, 90 strengthening, 89 ‘Innovation chain,’ 51 Innovation Impact, 32, 35, 36 Innovation input indicators, 10–11 average values, 17, 19 factor analysis, 12–15, 13 Innovation output and outcome indicators, 10 factor analysis for, 15 Innovation process indicators, 10 average values, 18, 19 Innovation-stimulating leadership, 42 Innovation system, in Chinese biotechnology industry, 283–284 Innovative behavior of firms across sectors, 15–20 and level of value added, Innovativeness of team, meaning of, 41 Innovative performance, Innovative products and services, development of, 78, 79, 83, 98 Input-process-output models of teamwork, 45 Institutional discontinuities and competing ETC standards, 192 and new entrants in mid 90’s, 191 Institutional framework conditions, 164 Institutional instruments, 272, 284 Intel, 51 Intellectual property law, changes in, 257 Intellectual property rights (IPR), 284 Interactionist approach, creativity in, 146, 147 Internal Product Safety Performance (PSPI), 290 International companies’ role in biotechnology knowledge creation, 280–281 International inner-organizational learning and synergy, 101 Interorganizational competence, 125 See also “Technological Europe” of tomorrow components, 138–139 cooperation, 139 emergence, 137–139 Interorganizational factors, in collective competence, 135–136 323 Interpersonal exchange management, 151 Intraorganizational performance, for high-tech industries, 137, 138 Invention commercialization model, 255 Inventor ownership model, 261–262 experiences with, 263–265 Inventor-TLO relationship, 258–260 Investment capability, 12, 13, 17 IP ownership, 264 IPR See Intellectual property rights (IPR) Ireland, 228, 229 Israel, 228, 229 Italy, 188 IT-enabled services, 226 Iteration and capitalization abilities, 92 J Japan, 188, 228, 264, 272 biotechnology industry, development of, 271 biotechnology patents in, 280 broadband service in, 217 clean energy production, 217, 219 domestic manufacturing skills, 209 externalization of manufacturing as strategy, 209–210 innovation strategies, 201, 214 human capital development, path dependency in, 215–216 innovation strategies, changes in, 205–210 national institutional framework perspective, 203 new industries, innovation opportunities in, 217–220 stratagems of past, 203–204 sustained innovation, empirical evidence of, 210–214 innovation system, 203 labor force, changes in, 207–208 main bank finance and contingent governance, 205–207 off-shore manufacturing operation, 209 oil supply crisis in, 203 rate of labor mobility in, 208 software exports in, 229 telecommunications infrastructure, 217 Japanese Model, from institutional viewpoint, 204 J-Firm, 204 Judgmental memory, 127 Juvenile product industry, product safety in, 293, 294 324 K Kampf, Serge, 79 Kanban inventory management systems, 204 Key individual roles identification, 68–70 importance, 91 KIBS See Knowledge-intensive business services (KIBS) k-means cluster analysis, 111 industrial regions, 112–113 lagging regions, 113–114 regional leaders, 114–117 results, 112 Knowledge-based society, regional innovation systems in, 106 Knowledge brokers, 52, 56, 59, 68–71, 74, 130, 132 Knowledge creating company, 204 Knowledge factor See Cooperation factor Knowledge-intensive business services (KIBS), 114–116 Knowledge-intensive industries, 271, 272 Knowledge-intensive relations, 52, 53, 56, 58, 68, 74 Kruskal-Wallis test, 111, 119, 120 L Labor force changes, in Japan, 207–208 Lagging regions, 113–114 industrial environment, 113 market environment, 113 MNE characteristics, 119 public research and higher education environment, 113–114 Large companies, strategy for, 171 Latecomer firms, Leader-member exchange, in innovation development factors and challenges methodology guide-marks, 152–153 research problem, 151–152 Leader-member relationship, 148–151 Leader’s role, in individual innovative behavior, 148–150, 152 Lightweight teams, 32 Livedoor, 220 Local development teams, 85, 86 appropriation of methods and tools, 93 collaborative and global projects, individual aptitudes to, 90 collective abilities, 90–91 distinctive competencies, development of, 91–92 Index innovation ability, strengthening of, 89, 90 iteration and capitalization abilities, 92 mastering key roles, 91 project management abilities, 89 strengthening, 82, 86–93 Long-Term Credit Bank of Japan (LTCB), 207 LTCB See Long-Term Credit Bank of Japan (LTCB) M Main bank finance and contingent governance, of Japan, 205–207 Mainland China See Chinese biotechnology industry, cooperative innovation in Management abilities, 97 Management recognition, 43 Managerial/organizational advice, 59–60 Manager, role of, 155 Mannesmann Pilotentwicklung GmbH (MPE), 189 Mannesmann’s predevelopment unit, and project ROBIN, 177–194 impact, 193–194 macro level competing ETC standards, institutional discontinuities and, 192 discontinuities in early 1990’s, 188–189 institutional discontinuities and new entrants in mid 90’s, 191 micro level FFE, of NRI process, 190–191 firm context in early 1990’s, 189 new NRI-OR, final P&L cycle and transfer to NPD, 193 new P&L cycles in NRI process, 191–192 Market abilities, 97 penetration, 41 regulation, 214 Market-based exchange relationships, 101 Market environment, 109, 110, 113 of industrial regions, 112 of lagging regions, 113 of regional leaders, 114 Market knowledge flows, in global network, 282 “Mark-to-market” rules, 207 Matri project, 78, 125–126, 129 Mature environment vs immature environment, 236–237 Member-individual, management of, 154–155 Merlin Gérin, 94 Index Meta-national innovation, 10, 15, 51, 52, 54, 56, 58, 63, 74, 132 MINALOGIC Cluster, in Grenoble local new service development teams in, 77–79 capitalizing on abilities and collective learning, 86 competitiveness poles, 83 level of collaboration and related limits, 84–85 local development teams, strengthening performance of, 85–93 Ministry of Finance, 207 Mixi, 220 MNCs See Multinational companies (MNCs) MNEs See Multinational enterprises (MNEs) Moderately dynamic markets, dynamic capabilities in, 55 Molecular biology, 257 Motivation stereotypes, 169–170 MPE See Mannesmann Pilotentwicklung GmbH (MPE) Multinational companies (MNCs), 52, 54, 56, 74 Multinational enterprises (MNEs), 101 characteristics of industrial regions, 119 of lagging regions, 119 of regional leaders, 119 clusters, distribution in, 120 innovation, context specificity of, 104–105 innovative activity, characteristics of, 102–104 regional clusters, matching of, 117–120 and regional embeddedness, 101, 102, 105–106 in European regions, 108–120 indicators and variables for, 109 regional characteristics, 109 Multiple innovation indicators, Multiproject management, 145 N Nanotechnology, 271 National Basic Science (973) Initiative, 273 National companies, 101 National innovation system, 203 National institutional framework, 203 National radical innovation (NRI), 177, 178 definition, 184, 194 framework, 195–197 future research, 198–199 holistic categorization scheme for, 179–184 325 Mannesmann’s predevelopment unit and project ROBIN, 187–194 NRI framework, application and modification of, 195–197 preliminary NRI framework, 184–186 process concept stage, 185–186 FFE of, 190–191 framework, 184–186 P&L-cycles in, 191–192 realization stage, 185–186 total project-radicalness matrix, 194–195 Nation level radical, 183, 194 NCB See Nippon Credit Bank (NCB) ‘Nearest time neighbor’ method, 110 Nearshore resources, 80 NETDRAW, 60 Netherlands, The, 117 biotechnology patents in, 280 Network connectivity, 68–70 definition, 103 embeddedness, 102 Networked innovation, 51, 52, 56, 74 Networking, Network of practice, 53 New Argonauts, 56, 71 New ideas/innovation, 65–68 New product development (NPD), 31, 178 behavioral characteristics, 40, 45 benevolence-based relationships, 46 boundary-spanning activities, 46 Chinese firms and international firms, 305 clear goals and strategic goals, establishment of, 46 communication practices, 45–46 conceptual model for, 290 customer involvement in, 302 designing, 32, 45 autonomous teams, 33 bureaucratic teams, 33 functional teams, 32 heavyweight teams, 32–33 hybrid teams, 33 lightweight teams, 32 organic teams, 33 team size and team composition, 33–35 factors affecting performance, 31–32 input-process-output models of teamwork, 45 leading and monitoring performance, 40–42 main elements/concepts in, 57 organizational environment, 42–44, 46 process, 292–293, 300–305 326 New product development (NPD) (continued ) process characteristics, 35–39, 45 product safety culture in, 291–292, 295 product safety management, 289 (see also Product safety management, in NPD) project teams, 56, 57 resources, 292, 295 risk management tools, 295, 300 semiconductor industry, knowledge flows from, 51 external and internal nodes and linkages, 70–72 fostering organizational capabilities, 72–73 literature, 52–56 network connectivity and key individual roles identification, 68–70 new ideas/innovation, 65–68 research methodology, 57–59 seeking managerial/organizational advice, 59–60 seeking technical advice, 61–65 social capital, 45–46 team learning, 46 team-level/meso perspective, 31 team organization, 295, 298–299 tools, 293 Nikkei 250 stock, 205 Nippon Credit Bank (NCB), 207 Nokia, 51 Non-exclusive licensing, 265 Nontechnological process innovation, 7, 18, 20 Norway, 188 NPD See New product development (NPD) NPD process (NPDP), 53, 290, 292–293, 295, 300–305 NPD tools, 293 product safety review, 293 supplier involvement in, 293 NRI-FFE-project formation and formative prototype development, 190 NRI-opportunity (NRI-OP), 185–186 NRI-OR, 190 Nvivo eight software, 296 O OBM See Own brand manufacturing (OBM) OBU See On-board unit (OBU) Occupational safety culture, 290 OCR See Optical character recognition (OCR) ODM See Own design manufacturer (ODM) Index OEA See Original equipment assembling (OEA) OECD PISA See OECD Programme on International Student Assessment (OECD PISA) OECD Programme on International Student Assessment (OECD PISA), 215 OEM See Original equipment manufacturing (OEM) Offshore resources, 80 Oil supply crisis, in Japan, 203 On-board unit (OBU), 179, 187, 190, 193–195, 198 Onshore resources, 80 Operational boundary spanning activities, 37 Opportunity exploration, 150 Optical character recognition (OCR), 192 Organic team, 33 Organisational characteristics, of SIC strategy, 167, 170–171 structural characteristics, 167, 171 Organizational capabilities, 72–73 Organizational competence, 105, 125 Organizational creativity research, 150 Organizational environment, 42–44, 46 Organizational resources, 99, 148, 155 Organizational teams, performance of, 40 Original equipment assembling (OEA), Original equipment manufacturing (OEM), Own brand manufacturing (OBM), Own design manufacturer (ODM), P Participative decision-making, 38 Patents, importance of, 257 Path dependency in human capital development, 215–216 and innovative behavior of firms, 2–5 data and method, 7–12 framework, 5–7 innovation indicators, factor analysis of, 12–15 innovative behavior across sectors, differences in, 15–20 meaning, 271 in sectoral level, Personal characteristics, of SIC, 167–170 PHA See Preliminary Hazard Analysis (PHA) Philippines, 228, 229 Physical resources, 99 P&L cycles in NRI process, 191–192 and transfer to realization, 190–191 Index Poetic approach, creativity in, 146 Political boundary-spanning activities, 37 PPPs See Public private partnerships (PPPs) Preliminary Hazard Analysis (PHA), 290 Pre-ordained thinking model, 147 Principal component analysis, 11 Private institutions vs public institutions, 236, 238 Private providers, 234–235, 248 Probe-and-learn-model, 184, 186, 196 Procedural memory, 127 Process characteristics, of NPD teams, 35–39 Process innovation, 3, 7, 10, 11, 14, 20, 203, 209 factor analysis for, 14 Process upgrading, Product development, 289 Product failure, 289 Product innovation, 4, 7, 19, 20, 203, 209 Product safety committee, 298 Product safety culture (PSC), 291–292, 295 Product safety management, in NPD, 289, 295 conceptual model for, 290 future directions, 305–306 literature review, 290 NPD process, 292–293 NPD resources, 292 product safety culture, 291–292 quality department, role of, 291 top management support to product safety, 291, 297 methodology, 294, 301 practices, 300–305 results and discussion NPD process, 300–305 NPD resources, 299 NPD team organization, 298–299 product safety culture, 298 product safety, training for, 299–300 quality department, role of, 297–298 top management support to product safety, 297 Product safety review, 293 Product safety testing, 303 Product upgrading, Professional competency, 151 Professional, scientific and technical services, 226 Professions/jobs, impact on, 81–82 Project-based approach, 147 Project management abilities, 89 PSC See Product safety culture (PSC) PSPI See Internal Product Safety Performance (PSPI) 327 Public governance, 271 Public private partnerships (PPPs), 162, 163 Public research and higher education environment, 110 of industrial regions, 113 of lagging regions, 113–114 of regional leaders, 114–115 Q QFD See Quality Function Deployment (QFD) Qualified domestic personnel, training and recruitment of, 283 Quality department, on product safety, 291, 295, 297–298 Quality Function Deployment (QFD), 305 Quality, meaning of, 40 Quasi-national system, 204 R Radical concept, definition of, 183 Radical impact, definition of, 183 Radical innovation See National radical innovation (NRI) Radical realization, definition of, 183 Rakuten, 220 Rational choice criteria, 172–173 Rationalities approach, 147 R&D collaboration, 161, 162, 164, 167–169, 172 Recognition and reward, affect-based management of, 155 Regional clusters matching, with MNEs, 117–120 Regional embeddedness, 101, 102, 105–106 indicators and variables for, 109 and MNEs, in Europe clustering European regions, 111–117 methodological approach, 108–111 regional characteristics, 109 regional clusters, matching of, 117–120 Regional innovation systems, 104–106 Regional leaders, 114–117 industrial environment, 114 market environment, 114 MNE characteristics, 119 public research and higher education environment, 114–115 Regional networks, 102, 104–105, 271 Region, meaning of, 102 ‘Régnier abacus’ system, 152, 158–159 Régnier, François, 153 328 Regulatory state, 235–236 Reimers, Niels, 261 Relational boundary-spanning activities, 37 Relational exchanges management, 144–148 Research institutions and universities, strategy for, 170–171 Resource centers, 87, 91, 92, 98–99 Resource deficiency, Resources, 77 Returnees, 273, 274, 281–284 Rewards, 43 Rightshore™ model, 80–82, 96 Risk management, 290 NPD, tools in, 305 Road Billing Network See ROBIN project Road toll charging, 191 “Road Transport and Traffic Telematics,” 188 ROBIN project, 187–194 total project-radicalness matrix to in concept phase, 194 impact, 195 in realization phase, 195 Rogers’ diffusion of innovation model, 146 Russia, software exports in, 229 S Scale-and-depth factor, 228 Schneider Electric, 94 Science-industry co-operations (SIC), 161 actor-based component, 162–163 conceptual approach for establishment, 166, 172–173 factors influencing, 165–168 organisational characteristics strategy, 167, 170–171 structural characteristics, 167, 171 personal characteristics, 167–170 stepwise approach, 164–166 ‘Science to Achieve Results,’ 41 Scientific entrepreneurship, promotion of, 286 Scientific knowledge flows, in informal network, 282 Scientific/technological abilities, 96–97 Sectoral innovation system, 104–105 Sectoral systems, similarities in, Self-funded non-profit institutions, 234–235 Self-leadership capabilities vs individual innovation behavior, 151 Semiconductor industry, knowledge flows from See New product development (NPD) Semiconductors, 56 Services sector, in India, 225 Index Shanghai cluster, 275, 276 Shenzhen cluster, 275, 276 Shop-floor process innovation, of Japan model, 207 SIC See Science-industry co-operations (SIC) Siemens, 194 Silicon Graphics, 263 SIPO See State Intellectual Property Office (SIPO) Small and medium-sized enterprises (SMEs), 12, 35, 41, 84–89, 91–94, 98, 169, 171, 192 Social capital, 36, 37, 45–46 Social embeddedness, 102 Social innovations, 177 Social network analysis, 52, 56, 130, 131 Softbank, 220 Software exports, from developing countries, 229 South Korea, 210, 217 biotechnology patents in, 280 Spain, 188 Stanford Office of Technology Licensing, 263 Stanford TLO, 261 Stanford University, 258, 263 State Intellectual Property Office (SIPO), 272, 274 State-owned institutions, 236, 238 State, role of, 230–231, 235–236 Static competency vs dynamic competency, 139 Statistical Office of Estonia, 11 Steering state, 236 Stepwise approach, to SIC, 164–166 Strategic competence, 125, 126 Strategic goals, establishment of, 46 Strategic innovation planning, 145 Strategy, 167 for large companies, 171 manufacturing as, 209–210 relational view, 54, 55 for research institutions and universities, 170–171 for small and medium-sized enterprises, 171 Structural characteristics, of SIC, 167, 171 “Submarine” patents, 260 Sun Microsystems, 263 Supplier involvement, in NPD process, 293, 304 Sustained innovation, in Japan, 210–214 Sweden, 217, 264 Switzerland, biotechnology patents in, 280 Synergy, 182 Systematized problem-solving vs individual innovative behaviors, 151 System of National Accounts approach, Index T Tacit knowledge, 58 vs codified knowledge, 103–104 Taiwan, 210 Taj group, 226 Task interdependencies, 37 TCM See Traditional Chinese Medicine (TCM) TCS, 226 Team behaviors, 40 vs team learning, 39 Team design, 32–35, 45 Team leadership, 41–42 Team learning, 46 definition, 39 vs team behaviors, 39 Team performance objectives, 40–41 Team psychological safety, definition of, 40 Team size and composition, of NPD teams, 33–35 Technical advice, 61–65 Technical change and economic growth, Technical education, 228 Technological community, 54 “Technological Europe” of tomorrow, 125 collective competence, 126–127, 130–134 competencies for, 129–130 environmental competence, 127–128 interorganizational competence, emergence of, 134–139 Technological innovations, 177, 180 Technological opportunity, 3–5 Technological process innovation, 7, 18, 20 Technology-based innovation, 41 Technology licensing offices (TLOs), 256 Technology transfer process, 161, 257–260, 263–264 Telecommunications services, in India, 225 Tension of equal importance, 45 Territorial competence, 125, 126 Territorial embeddedness, 102, 107 Territorial innovation system, 104 Third party funding, 169 Tied-in behaviors, 150 Ties, concept of, 35–36 TLOs See Technology licensing offices (TLOs) Toll Collect System, 193–195 Top management support, to product safety, 290, 295, 297 Total project-radicalness matrix, 183, 184, 194–195 to ROBIN project in concept phase, 194 329 impact, 195 in realization phase, 195 Total quality management, 204 Toyota, 221 Traditional Chinese Medicine (TCM), 273, 279 Truck-toll system, 191 U UCINET, 69 UGC See University Grants Commission (UGC) UK, biotechnology patents in, 280 United States Patent and Trademark Office (USPTO), 272–273, 275, 279–281 Chinese biotechnology patents in, 277 Universities and public research institutions, role of, 276 University Grants Commission (UGC), 230, 232–233 University of California, 257 University of Cambridge, 262–264 University of Waterloo, 263 University researchers’ attitudes, 170 University TLO, 257–258 and inventor, 258–260 Upgrading, objectives of, USA, 188, 238, 263, 272, 289 ASTM meeting in, 300 biotechnology patents in, 280 software exports in, 229 US biotechnology firms, competitive advantage for, 271 US NASDAQ market, 202 USPTO See United States Patent and Trademark Office (USPTO) U.S university invention ownership model, 255, 256 licensing, 256 patenting, 256 V Value added, 11 decrease in, increase in, and innovative behavior of firm, in macroeconomics, meaning, 6–8 Value Commerce, 220 Variable time courses, management of, 153–154 Varimax method, 11 330 V Cycle, 87 Vignette system, 191 V-model, use of, 79 VOC See Voice of Customer (VOC) Vodafone, 193–195 Voice of Customer (VOC), 292 for product safety, 301–302 W Weaker ownership rights models, 265–266 Index Weak intellectual property rights system, 284, 285 Wilks’ Lambda significance test, 115, 116 Wipro, 241 Work motivation, 43 Work teams, 204 World-class biotechnology knowledge base, direct involvement in, 282 Z ‘Zombie’ firms, 207