The Generation of Innovations

From the book: Diffusion of Innovations

Everett M. ROGERS

Roberta Campos

April 2008

Innovation-Development Process

Diffusion and Adoption

Consequences

Diffusion and Adoption

TIME

% ADOPTERS

Innovation-Development Process

Needs / Problems

Research(Basic and

Applied)

Development

Commercialization

Diffusion and Adoption

Consequences

Past Tracer StudiesPast diffusion studies

Innovation-Development Process

Needs / Problems

Research(Basic and

Applied)

Development

Commercialization

Diffusion and Adoption

Consequences

Need or problem

Starting point of the process

May be a future problem foreseen by a scientist. Ex: Labor shortage for tomato farmers

May rise as a priority on a system’s agenda Ex: Shift from an individual-blame

perspective to a system-blame view on traffic safety

Innovation-Development Process

Needs / Problems

Research(Basic and

Applied)

Development

Commercialization

Diffusion and Adoption

Consequences

Basic and Applied Research

Basic research: original investigations for the advancement of scientific knowledge without specific objectives.

Applied research: scientific investigation that are intended to solve practical problems.

Technological innovation: result of an interplay of scientific methods and practical problems.

Measure of success of research is the number of patents

Serendipity

Sometimes, one invention is made while pursuing a different innovation

Accidental discovery of a new idea.

Ex: Post-it!, Rogaine (hair-restorer) / Viagra

Innovation may be developped by users as well as by manufacturers.

Innovation occurs when information is exchanged on needs and technological solutions.

Ex: Warfarin (p. 150 / 151)

Innovation-Development Process

Needs / Problems

Research(Basic and

Applied)

Development

Commercialization

Diffusion and Adoption

Consequences

Development

Process of putting a new idea in a form that is expected to meet the needs of an audience of potential adopters (p. 137).

Technology is shaped by social patterns, it is influenced by social norms and values.

Ex: Gas refrigerator X Electric refrigerator

Development

Skunkworks: Small and « subversive » units within an organization that develop creative innovation.

Source of creativity outside the bureaocratic and large R&D departments.

Development: technological transfer

Traditional view of technological transfer: one-way process through which (basic and applied) research results are put into practice. (Technology mainly seen as hardware)

Technology transfer: « exchange of technical information between the R&D workers who create a technological innovation and the users of the new idea » (p. 140)

It is a two-way exchange and communication process.

Implies the arrival of practical information to the research and development moment.

Development: technological transfer

US X Japan

US R&D leader in creating technological innovations.

Japan: more effective in the transfer of technologies into commercial products.

Ex: VCR

1950’s: Ampex clients were TV stations.

Ampex R&D suggested a miniaturized VCR for home use => Management sold the rights to Sony Corp.

Today, no American company produces the VCR.

Innovation-Development Process

Needs / Problems

Research(Basic and

Applied)

Development

Commercialization

Diffusion and Adoption

Consequences

Commercialization

It is the conversion of an idea from research into a product for sale in the marketplace.

Production, manufacturing,

packaging, marketing,

communication, distribution, pricing

Commercialization

Technological cluster: two or more innovations market together to ease diffusion

Ex: Xerox PARC (Palo Alto Research Center) – By 1977

Commercialization:The PARC Example

Xerox PARC (Palo Alto Research Center)

In 1970, it was created to develop the office of the future.

By 1977, the PARC had developped: The world’s first personnal computer

The mouse

Icons and pull-down menus

Laser printing

Ethernet technology - network

Commercialization: The PARC Example

What generated this amazing performance? Outstanding R&D personnel sourced from:

the US Dep. of Defense’s Advanced Reserch Agency and Universities (MIT, Stanford, etc)

a nearby computer company that failed SRI International led by a visionary computer

scientist (invented the mouse)

PARC management style encourages innovation (favorable organizational culture)

Employees used innovation in their daily work Microprocessor (crucial prior innovation) just invented

in the early 1970’s.

Commercialization: The PARC Example

But why Xerox was unable to commercialize this technologies in the market place? Company sees itself as in the office copier business. Only

the laser printing fits this business mission.

No effective mechanism was created for technology transfer from PARC to the commercialization divisions in Xerox.

PARC in Palo Alto, CA and the Manufacturing center in NY.

Technological transfer happened when Steve Jobs hired several PARC engineers.

Innovation-Development Process

Needs / Problems

Research(Basic and

Applied)

Development

Commercialization

Diffusion and Adoption

Consequences

Diffusion and Adoption Innovation gatekeeping concept: controls whether or

not an innovation should be diffused to an audience.

Role of the diffusion agencies in agricultural and medical sectors.

National Institute of Health (1978) => consensus development: process that gathers scientists, practitioners, consumers, and others to reach agreement on the safety and effectiveness of an innovation.

Clinical trials conducted in the commercialization phase: evaluate the innovation under real life conditions.

Innovation-Development Process

Needs / Problems

Research(Basic and

Applied)

Development

Commercialization

Diffusion and Adoption

Consequences

Consequences

Changes to an individual or a community as a result of the adoption (or rejection) of an innovation.

Initial needs / problems are solved or not.

Socioeconomic impact of innovations

Ex: Tomato-harvesting

Consequences: Tomato-harvesting example

Motivation for mechanical harvester developement:

Risk of labour shortage: end of the bracero program in 1964

Intented to save the tomato industry

Development of large harvesters to cope with the size of the tomato production in California

Consequences: Tomato-harvesting example

Before the technology (1962): 4,000 farmers

50,000 farmworkers, mostly Mexican men immigrants

Soft tomatoes (bruises easily in mechanical harvesting)

After the technology (1971) 600 farmers

1,152 machines and 18,000 workers (80% women / a few Mexican)

Hard tomatoes (do not bruise easily) – fewer vitamins

Consequences: Tomato-harvesting example

Consequences:

32,000 former hand pickers out of work

Reduction of the number of producers

Industry concentration

What if the scientists had developed a smaller machine, affordable for small famers? How the social impact would differ?

Tracing the Innovation Process

Key learnings from tracer studies: Applied research contributes more directly to

creation of an innovation than does basic research.

Major technological advances require a cluster of innovations (Ex: The mechanical harvester and the harder tomato type).

A relatively long period (10 to 20 years) is needed between an innovation in basic research and its practical application. Basic research results « need to age ».

Reserch is often conducted without a practical application to a certain problem in mind. A considerable degree of serendipity may occur.

Weakenesses of tracer studies

All retrospective

Focus on important technological innovation: the heart pacemaker, oral contraceptives. How it works for less important innovations?

Should we trace non-successful innovations?

Accidental aspects are less likely to be fully reported on data available.

Thank you!