Chapter 11 – Technology-based industries & the management of innovation. This chapter presents the following content: Competitive advantage in technology-intensive Industries, strategies to exploit innovation, competing for standards, implementing technology strategy. | Technology-based Technology-based Industries Industries amp amp the the Management Management of of Innovation Innovation OUTLINE Competitive advantage in technology-intensive Industries Appropriating the returns to innovation Strategies to exploit innovation Alternative approaches Timing to lead or to follow Managing risk Competing for standards Implementing technology strategy The conditions for creativity From invention to innovation The The Development Development of of Technology Technology From From Knowledge Knowledge Generation Generation to to Diffusion Diffusion IMITATION Supply side Basic Invention Innovation Diffusion Knowledge Demand side ADOPTION The TheDevelopment Development of of Technology Technology Lags LagsBetween Between Knowledge KnowledgeGeneration Generationand and Commercialization Commercialization BASIC FIRST PRODUCT IMITATION KNOWLEDGE PATENTS LAUNCH Xerography late 19th and 1940 1958 1974 early 20th centuries Jet Engines 17th– early 1930 1957 1959 20th centuries Fuzzy logic 1960 s 1981 1987 1988 controllers Appropriation Appropriation ofof Value – Value – How How are are the the Benefits Benefits from from Innovation Innovation Distributed Distributed Customers Suppliers Innovator Imitators and other followers The The Profitability Profitability of of Innovation Innovation Value of the Legal protection innovation Profits Complementary from Innovation Innovator s resources ability to Imitability of the appropriate the technology value of the innovation Lead time Legal Legal Protection Protection of of Intellectual Intellectual Property Property Patents exclusive rights to a new product process substance or design. Copyrights exclusive rights to artistic dramatic and musical works. Trademarks exclusive rights to words symbols or other marks to distinguish goods and services trademarks are registered with the Patent Office. Trade Secrets protection of chemical formulae recipes and industrial processes. Also private contracts between .