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  1. 1. Role of Technological Innovations for Competitiveness and Entrepreneurship Prof. DEVANATH TIRUPATI – IIM A Phone: +91-80-26993103 E-mail: devanath.tirupati@iimb.ernet.in
  2. 2.     Technological capabilities and related innovations have the potential to enhance the competitiveness of firms, significantly. Collaborative development – both within the firm and beyond is becoming an important driver of technological capabilities. Products and production technologies are becoming more complex, requiring diverse capabilities that are beyond a typical firm. Developments in computers, communication and information technologies have made it easier to integrate and thereby collaborate.
  3. 3.  • • • Technology and Innovation Management are Multi faceted with several perspectives. ECNOMISTS view it as the black box for conversion of inputs to outputs and employ production function to characterize the transformation - with labour and capital forming the key input resources. ENGINEERS see the details and the physical laws that govern the transformation. OPERATIONS MANAGEMENT RESEARCHERS have the business perspectives and consider both soft and hard aspects of Technology Management.
  4. 4.    Products – the knowledge of how things work, their design and their interface with other products. Processes – the knowledge of the laws of the transformation processes and the relationship between different components of the process. Practices – the management of the product process combine and include related managerial systems and processes.
  5. 5.        Defining sources of competitiveness Integrating technology with the overall strategic objectives of the firm. Technology flows, i.e., transfers, imitation, development. Commercialization of technologies. Innovation and improvement processes Capability building processes. Evolution of technological change.
  6. 6.    The innovations leading to new and/or improved products can be classified as ‘product’ based innovations. Process based innovations lead to improved production processes. Innovations in ‘practices’ may impact product and/ or process elements of the technology. BASED ON THE ADAPTION INVOLVED, INNOVATION IS CLASSIFIED INTO TWO. Adaptations for New Markets/ Regions Adaptations for Other Sectors/ Industries
  7. 7. Breakthrough - Innovations with major changes that result in order of magnitude impact.  Incremental - Innovations that require only small changes and are likely to result in modest improvements rather than a big bang. 
  8. 8.    Product Innovations: Product innovations can take many forms with breakthrough innovations expanding existing markets, opening up new markets, and customer segments and providing first mover advantage. Process Innovations:- the benefits:- reduction in process time, set up time, wastage and improvements in quality. Practice Innovations:Even though it may not always be visible, it has got the potential to enhance firm level capabilities either in products or processes or both.
  9. 9. The support to small enterprises from an appropriately designed innovation system greatly alleviates the failures and improves the survival and success rate. The two mechanisms that have been effective in a wide range of environments. 1. Technology incubators: Most technology incubators focus on one or a small set of technologies. Typically they have a pool of resources comprising in-house expertise and facilities related to the technologies of interest and are designed to provide the requisite support. 
  10. 10. 2) Clusters of producer networks: This is a collaborative model in which a large number of producers with focused technological capabilities and operating in close proximity are able to develop synergies and compete together successfully in the larger marketplace.
  11. 11.   Focus of the firm: As mentioned earlier, small firms are forced to develop specialized capabilities in a narrow area. Interactive/cooperative producers: Complementary capabilities among producers located close to each other provide the cluster members an opportunity to interact and cooperate and thereby successfully compete together. This interaction can occur in many forms—sharing of orders, forming a sales network, have outsourcing arrangements, etc.
  12. 12.   Market maker/coordinator: Access to markets is critical for success of clusters. With no single producer having the requisite market knowledge and/or technical capabilities, there is a need for a coordinator to bridge the gap between the markets and the cluster of producers. Regulatory support: Specific areas of government help could include: incorporation and closure processes, access to market and market information, market for credit, etc.
  13. 13.  Capability building support: In the absence of scale economies, small firms need to maintain their technical edge to remain competitive. This requires continuous training and innovation efforts in the focus areas of expertise.
  14. 14.  Manu E M