Schilling Ch # 1 – Ind Dynamics of Tech Inno(pg 1) Definitions:
1) Technological Innovation: The act of introducing a new device, method, or material for application to commercial or practical objectives
2) Gross Domestic Product: The total annual output of an economy as measured by its final purchase price.
Key Points:
1) Importance of Technological Innovation: Technological innovation is now the most important driver of success in many fields and industries. Its importance in some ways is due to the globalization of economies and also due to advances in computer designs and software technologies. Computers have made it possible to design new products easier and faster as well as produce new products efficiently and effectively. Flexible manufacturing techniques enable firms to have multiple product variations. Due to shortened development cycles and faster new product introductions, product life cycles have become relatively short.
2) Impact of Technological Innovation on Society: Technological innovation has had a positive impact on society. It enables delivery of a wider range of goods and services, improved production of food, improved healthcare and made travel and communications a lot easier. In order to view the overall impact of technological innovation on society, the GDP per capita for the world can be used. As shown in Fig 1.2 on page 5, the GDP has risen steadily over years. But according to studies, growth in labor and capital inputs could not account entirely for the growth in GDP. This unaccounted-for residual growth can be attributed to technological change brought about by technological innovation, according to Robert Merton Solow.
3) But sometimes technological innovation can also have negative externalities like pollution.
4) The importance of strategy: It is important to have clearly defined innovation strategies and management