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Garcia, R. and R. Calantone (2002), A Critical Look at Technological Innovation Typology and Innovativeness Terminology: A Literature Review

Q: What does the innovation process comprise?

The technological developmetn of an invention combined with the market introduction of that invention to end-users through adoption and diffusion

33 important questions on Garcia, R. and R. Calantone (2002), A Critical Look at Technological Innovation Typology and Innovativeness Terminology: A Literature Review

How has the innovation process been identified?

Radical
Incremental
Really new
Discontinuous
Imitative innovations
Architectural
Modular
Improving
Evolutionary

What is the problem considering the non consistent delineation?

Managers see conflicting empirical results. They make choices of which research findings is 'relevant' based on the presentation style, the hot topic of the meeting, or whatever supports their personal motivations or that of their current consultant.

What does the innovation process comprise?

The technological developmetn of an invention combined with the market introduction of that invention to end-users through adoption and diffusion

What does it mean that the innovation process is iterative in nature?

It automatically includes the first introduction of a new innovation and the reintroduction of an improved innovation

What are technological innovations?

Those innovations that embody inventions from the industrial arts, engineering, applied sciences and/or pure sciences

When does an invention become an innovation?

When it passes through production and marketing tasks and is diffused into the marketplace

What is the difference between radical and incremental innovation?

Radical innovation is in the early stages of diffusion and adoption and incremental innovations at the advanced stages of the product life cycle.

What is the macro perspective?

Innovativeness is the capacity of a new innovation to create a paradigm shift in the science and technology and/or market structure in an industry.

What is the micro perspective?

Innovativeness is the capacity of a new innovation to influence the firm’s existing marketing resources, technological resources, skills, knowledge, capabilities, or strategy.

What is firm/organizational innovativeness?

The propensity for a firm to innovate or develop new products. It has been defined as the propensity for a firm to adopt innovations.

Which four different classifications are found?

Utterback --> discontinuous/continuous
Rothwell & Gardiner --> technological discontinuity --> reinnovations/innovations
Kleindschmidt & Cooper --> High/moderate/low innovativeness
Abernathy & Clarck --> Niche creation/architectural/regular/revolutionary

Which four different levels of product/service innovativeness are found?

Macro/micro perspective
Marketing and/or technological discontinuities
Single dimensional / multifactorial construct
Innovativeness as a categorical or continuous variable

Two forces from which discontinuities may originate

Marketing direction
Technological direction

Categorical/continuous measures

Those researchers using categorical measures most frequently summed the scales and split the sample into groupings of high/low/moderate innovativeness or some similar categorization. Using this method does not allow for external validity as the split in the data is dependent upon the sample of an often-limited population. Nor does it allow the findings from one study on radical innovations to be compared to another study on radical innovations. Findings for one study cannot be compared to another study as the degree of innovativeness is a factor of the newness of the innovation to a particular firm.

A typology for identifying technological innovations.

Radical innovations
Incremental innovations
Really new innovations

What does the author mean with radical innovations?

Innovations that cause marketing and technological discontinuities on both a macro and micro level. (12,5%)

What do radical innovations embody?

A new technology that results in a new market infrastructure. Both macro/micro level. Discontinuity on a world, industry or market level will automatically cause discontinuities on the firm and customer level

How does the S-curve work?

Technological product performance moves along an S-curve until technical limitations cause research effort, time, and/or resource inefficiencies to result in diminishing returns. The new innovations replace the old technology and a new S-curve is initiated.

What is a technology evolution in the S-curve?

Early in an R&D program, knowledge bases need to be built, lines of inquiry must be drawn and tested and technical problems surfaced. Researchers need to investigate and discard unworkable approaches. Thus, until this knowledge has been acquired, the pace of progress toward technological limits is usually slow. But then it picks up, typically reaching a maximum when something like half the technical potential has been realized. At this point, the technology begins to be constrained by its limits, and the rate of performance improvement begins to slow.

What is the market S-curve?

Early in market formation, knowledge bases need to be built, lines of inquiry must be drawn and tested, and market-related issues surface. Marketers need to investigate and discard unworkable approaches. New markets evolve that support the new technological innovation, new competitors enter the market, and new partners and distribution channels emerge to exploit the new technology. Thus, until this market know-how has been acquired, the pace of progress toward market limits may be slow. Diminishing returns are experienced when the market place becomes saturated with competitors and me-too products.

What does the author mean with incremental innovations?

Innovations occur only at a micro level and cause either a marketing or technological discontinuity but not both (37,5%)

What does the author mean with really new innovations?

The combinations in between these two extremes (50%)

What is a really new product? One that:

Relies on technology never used in the industry before
Has an impact on or causes significant changes in the whole industry
Is the first of its kind and totally new to the market

What are the two important main counts of incremental innovations?

As a competitive weapon in a technologically mature market
Because streamlined procedures based on existing technology can help alert a business in good times to threats and opportunities associated with the shift to a new technological plateau

What do incremental innovations involve?

Adaptation, refinement, and enhancement of existing products and/or production and delivery systems.

Where will incremental innovations occur?

Only on a micro perspective affecting either the marketing and/or technology S-curve(s).

What are imitative innovations?

New to the firm, not new to the market. Imitative innovations usually have low technological innovativeness and low market innovativeness.

What are the two dimensions of product innovativeness?

Macro/micro (industry/firm)
Marketing/technology

What does the second-order factor show?

The formative conceptualization of the macro and micro perspective of product innovativeness. The greater the newness of the product innovation to the industry, the higher the product innovativeness. The greater the newness of the product innovation to the firm, the higher the product innovativeness. Failure to evaluate both of these factors in the modeling of product innovativeness will result in fatal errors to content validity.

An innovation should never be evaluated for its innovativeness based on only a macro or micro level.

P3a: A positive relationship exists between an innovation’s newness to the industry and its degree of product innovativeness.
P3b: A positive relationship exists between an innovation’s newness to the firm and its degree of product innovativeness.

At the first-order on a macro level for product innovativeness of an innovation:

P1a: The greater the discontinuity in the industry’s marketing S-curve, the higher the degree of newness of the innovation.
P1b: The greater the discontinuity in the industry’s technology S-curve (dissemination curve), the higher the degree of newness of the innovation.

Likewise at the first-order on a micro level:

P2a: The greater the discontinuity in the firm’s marketing knowledge, the higher the degree of newness of the innovation to the firm.
P2b: The greater the discontinuity in the firm’s technology knowledge, the higher the degree of newness of the innovation to the firm.

The customer perspective is considered as the firm evaluates its market strategy of innovative products.

P4: A positive relationship exists between product innovativeness and newness to the customer.

The question on the page originate from the summary of the following study material:

Artikelen Innovation & Entrepreneurship 2016

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