ia innovate or die sessie 2 koenraad debackere

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Innovate to Grow:

12 rules of innovation

Koenraad Debackere

KU Leuven

30-9-2013 Leuven.Inc "Innovate or Die" 1

12 RULES OF INNOVATION …

1) Rule 1: the Janus factor

2) Rule 2: the risk factor

3) Rule 3: the user value factor

4) Rule 4: the process factor

5) Rule 5: the team factor

6) Rule 6: the boundary-spanning factor

7) Rule 7: the durability factor

8) Rule 8: the attention factor

9) Rule 9: the proximity factor

10) Rule 10: the entrepreneurship factor

11) Rule 11: the shared value factor

12) Rule 12: the knowledge-creativity factor


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The Janus factor

• Joseph Schumpeter (inspired by Kondratiev):

technological progress as fundamental to economic

progress, driving competition through product

differentiation

• Schumpeter developed two models: he considered

them to be “opposites” and mutually exclusive, though

in reality they turned out to be highly complementary

“The eternal gale of creative destruction”

… pushing new firms and industries to the forefront and

destroying old ones … e.g. Michael Porter…


The Janus factor

• Robert Solow and the econometric proof of technology as

the “3rd” production factor Solow-residual to explain

economic growth beyond labor and capital (The Review of Economics

and Statistics, Vol. 39, No. 3. (1957), pp. 312-320):

– Y=F(K,L) (i.e. Cobb-Douglas Y = aLbKg)

– Y=F(K,L).X(T) with X(T) a parameter measuring technical progress

(e.g. evolution in R&D expenditures)

– R2: 20% ==> 80%

“Learning by doing and continuous innovation”

… enabling firms to reap enormous benefits from

institutionalising and routinising their innovation production

function… also: William Baumol …


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The risk factor

Risk and uncertainty --- “compagnons de route”, cf. Arrow

Fumbling the future …

Smith & Alexander, 198830-9-2013 Leuven.Inc "Innovate or Die" 6

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The user value factor


5















The process factor

• Professionalise innovation to manage risk!

• YES, but:


6















The team factor


7















The boundary-spanning factor


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The durability factor

• Uniqueness is what breeds innovation success …

• Though, not sufficient for a sustainable advantage:


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The attention factor

Source: Hayes, R.H., Wheelwright, S.C., and Clark, K.B. (1988). Dynamic Manufacturing. New York: The Free Press, p. 279.

See also Gluck and Foster. (1975, September-October). "Managing Technological Change: A Box of Cigars for Brad."

Harvard Business Review, p. 141.

Phases

Index of

Influence

High

Low

ACTUALMANAGEMENTACTIVITYPROFILE

KnowledgeAcquisition

ConceptInvestigation

BasicDesign

PrototypeBuilding

PilotProduction

ManufacturingRamp-Up

ABILITYTO INFLUENCEOUTCOME


10















The proximity factor


11















The entrepreneurship factor


12















De S-curve

transitie

SOCIETAL CHALLENGE

+

MARKET OPPORTUNITY

=

SHARED VALUE


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The knowledge-creativity factor


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THANK YOU! QUESTIONS?


ia innovate or die sessie 2 koenraad debackere

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