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What is innovation?
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Some basic notions of innovation including creative destruction by Schumpeter, etc. Presentación en el curso de Innovación y Diseño del ITESM campus Querétaro

Some basic notions of innovation including creative destruction by Schumpeter, etc. Presentación en el curso de Innovación y Diseño del ITESM campus Querétaro

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  • (c) Ricardo Sosa 2006-08 rdsosam@itesm.mx Tech Innovation ITESM Querétaro

Transcript

  • 1. INNOVATION Some basic definitions
  • 2. Joseph A. Schumpeter (1883-1950)
  • 3. What is “Innovation”?
    • Schumpeter called it in 1939 “a process of creative destruction”
      • Why is this important?
      • Why “a process”?
      • Why “creative”?
      • Why “destruction”?
      • Why is this a definition of innovation?
  • 4. Who was Schumpeter?
    • Joseph Alois Schumpeter (1883-1950)
      • among the first to lay out a clear concept of entrepreneurship
      • entrepreneurs introduce new means of production, new products, and new forms of organization
      • innovations cause old inventories, ideas, technologies, skills (experience), and equipment to become obsolete
    http://www.econlib.org/library/Enc/bios/Schumpeter.html
  • 5.  
  • 6. Process of Creative Destruction
    • In capitalism:
      • Innovation by entrepreneurs…
      • is the force that enables economic growth…
      • by destroying the worth of existing products…
      • continuously introducing differences…
      • that bring larger profits through uniqueness
  • 7. Creative Destruction
    • Competition naturally increases
      • Through price, strategy, campaigns, etc
      • Through product differences (real or perceived)
  • 8. Innovation And Growth: Schumpeterian Perspectives by Scherer, F. M. MIT Press, 1986 competition time profit time
  • 9. Convergence
    • A natural evolutionary tendency towards a “static equilibrium”
    • That requires cycles of incremental development
      • Triggered by occasional changes (entrepreneurs)
      • Most of them fail (high failure rate)
    Innovation And Growth: Schumpeterian Perspectives by Scherer, F. M. MIT Press, 1986
  • 10. Implications
    • Profit is gradually lost ($)
    • Recognition or novelty also gradually lost
    • As competitors introduce improved solutions or decrease costs
  • 11. Implications
    • Introducing changes is expensive, difficult, time-consuming and uncertain...
    • So companies innovate because (and until) they have to .
  • 12. Implications
    • People naturally resist change
      • Arousal threshold
      • Learning curves
      • Expenses
      • Dangers
      • Habits
      • Identity
      • etc...
  • 13.
    • Creative destruction in design
    Understanding
  • 14. A system of telegraphy
  • 15.  
  • 16. Patent number : 174465 Issue date : Mar 7, 1876 Inventor : ALEXANDER GRAHAM BELL
  • 17. Samuel Morse
  • 18. Samuel Morse
  • 19. Phonograph
  • 20.  
  • 21. Ivan Sutherland / Douglas Engelbart 1968
  • 22. 2005
  • 23.  
  • 24. Apple Newton, eMate & Pippin
  • 25. Palm Tungsten, Xbox 360
  • 26. Sinclair C5
  • 27. Segway
  • 28.  
  • 29.  
  • 30.  
  • 31.  
  • 32. creative? destruction?
  • 33. Sholes and Glidden (1875)  Palm Tungsten (2005)
  • 34.  
  • 35. Role of Design
    • Radical innovations
      • Technological improvements
    • Incremental innovations
      • Design improvements
    • Equally important
      • in economic terms
      • as design challenges