Innovation management. Учебное пособие
.pdf
1. Basic concepts and definitions of innovation management
The functions of innovation management should also be considered from the perspective of innovation activity factors. Accordingly, special functions of innovation management are distinguished: scientific, technical, economic, organizational, social, which generally take place at all stages of the innovation cycle of the enterprise:
−scientific functions are related to the management of scientific research and development, necessary for the effective implementation of various types of activities for the creation and implementation of innovations;
−technical functions provide a solution to a set of issues related to the technical and technological support of innovation activities, including basic and auxiliary production, management, all farms and services of the enterprise involved in the development of new products. The main content of technical functions of managing product innovations are design, technological, transport, warehouse, metrological and other types of preparation of production;
−economic functions of management of innovations, development of production plans require: conducting marketing research of products, determining the necessary volume of capital investments, calculating production costs, calculating economic norms and standards, income and profit, forming a system for recording output (and other works performed in innovative cycle), the decision of questions of a payment, its material incentive;
−organizational functions involve solving the problems of organizing the production of new products (organization of workplaces, brigades, sections, workshops, productions), organization of labor of workers and collectives, organization of production management, staffing of production;
−social functions include training, retraining and upgrading of the skills of the staff, creating a normal socio-psychological climate in
11
Innovation management
the teams, improving the working and living conditions of workers, overcoming social and psychological barriers to innovation.
Innovation is a result realized on the market, obtained from investing in a new product or operation (technology, process). Proceeding from this, we can say that the innovation itself, as an object of control, performs the following three functions:
−reproductive;
−investment;
−stimulating.
The reproductive function of innovation means that innovation is an important source of financing for extended reproduction. Monetary revenue derived from the sale of innovation in the market creates entrepreneurial profit, which acts as a source of financial resources and at the same time a measure of the effectiveness of the innovation process and can be used to expand the volumes of production, trade, investment, innovation and financial activity, which is the content of the innovation's reproductive function.
The investment function of innovation means that the profit obtained through the implementation of innovation can be used in various areas, including as capital. This capital can be used to finance both all investments and specifically new types of innovations, which is the content of the investment function of innovation.
The stimulating function of innovation is as follows. Getting an entrepreneur profit through the implementation of innovation directly corresponds to the objective function of any commercial entity. This coincidence serves as an incentive for the entrepreneur to innovate; encourages him to constantly study demand, improve the organization of marketing activities, apply more modern methods of financial management (reengineering, brand strategy, benchmarking, etc.), which is the content of the stimulating function of innovation.
12
1. Basic concepts and definitions of innovation management
Classification and the life cycle of innovations.
Innovations, with a clear focus on the final result and providing a certain technical or socio-economic effect, are significantly different from each other and have many varieties. Using different classification characteristics, we can distinguish the following groups of innovations (Table 1.2).
Table 1.2
Classification and the life cycle of innovations
|
Classification feature |
Types of innovation |
|
|
|
1 |
By technological parameters |
Product and process |
|
(type of innovation) |
|
|
|
|
2 |
By the type of novelty for the |
New in the world; |
|
market |
New in the country; |
|
|
New for this company |
|
|
|
3 |
The depth of the introduced |
Radical (basic); Improving; |
|
changes |
Modification (pseudo-innovation, |
|
|
private) |
|
|
|
4 |
On the content of innovations, |
Technical; Technological; |
|
innovative processes (in |
Production; Economic; Managerial; |
|
depending on the objects |
Marketing; Trading; Organizational; |
|
innovative activity); |
Informational. |
|
|
|
5 |
On variants of the organization |
Intra-corporate; Software; |
|
|
Competitive |
|
|
|
6 |
By features of innovative |
Intra-organizational; |
|
processes |
Inter-organizational. |
|
|
|
7 |
In the field of development and |
Industrial; Financial; |
|
the spread of innovations |
Trade and intermediary. |
|
|
|
8 |
In terms of scale and breadth |
Global; Industry; Local. |
|
impacts |
|
|
|
|
13
Innovation management
Innovations encompass new products and processes, as well as their significant technological changes (not only in industrial production, but also in other branches of human activity, for example, new drugs, new methods of treating diseases).
According to technological parameters, there are two types of innovations: product and process innovations.
Product innovations cover the introduction of new or improved products (for example, replacement of a steam engine with an internal combustion engine, indicators on liquid crystals).
Process innovation is the mastery of a new or significantly improved technology, equipment, organization of production for output, providing a fundamentally new level of product quality.
In terms of the degree of radicalism, the depth of the changes introduced, innovations can be divided into basic (radical), improving and modification.
Basic (radical) innovations are innovations that realize large inventions, discoveries, and become the basis for the formation of new generations and directions of technology.
Improved innovations usually implement small and mediumsized inventions that significantly improve existing products and their production processes.
Modification innovations are aimed at partial improvement of obsolete generations of equipment and technologies without noticeable influence on parameters, properties, product cost and methods of its production. This includes the expansion of the range of products and technologies due to the development of production not previously produced in the country, the industry or at this enterprise, but already known products on the market in order to meet the current demand, including the refusal to import them.
According to the type of innovation novelty for the market, innovation is divided into:
14
1.Basic concepts and definitions of innovation management
novelties of the world scale (new in the world) - these are the first introduced changes in the world that have no analogues anywhere;
novelties on a national scale (new in the country) - innovations are reproductive and adaptive: there are no analogues in the country, but they exist abroad;
innovations in the scale of this industry, region, enterpriseinnovation, having analogues in other industries, regions, at other enterprises, but not previously used in this industry, region, or enterprise.
In place in the economic system, enterprises are allocated:
a) innovations at the enterprise entrance related to changes in the selection and use of raw materials, materials and equipment (procedural innovations);
b) innovations at the output of the enterprise concerning the final products, services, technologies, information (food);
c) innovation of the system structure of the enterprise - management, technology and production.
Depending on the objects of innovation, for example, the following types of innovation can be distinguished:
− marketing (new markets, ways to promote products to the market, sales activities);
− technical (new or more advanced types of means of labor);
− technological (new materials, technological processes, methods and methods of work);
− organizational (new solutions in the field of organization of production, management, labor).
The time period that begins with the implementation of theoretical and exploratory research and includes the subsequent development, development and application of a new scientific and technical idea, improvement of technical and economic parameters of
15
Innovation management
the produced equipment, its repair and other maintenance, and ends with the moment when this technique is to be replaced by a qualitatively new, more effective, is called the life cycle. The life cycle of innovation includes five stages and for each of them uses its own loan option.
The first stage is the birth. The novelty is still at the stage of research and development work, which usually occupy the entire first year of the life of innovation. The specialists of the design bureaus assess the feasibility of the idea from a technical and economic point of view; explore the main technological trends, planning production and marketing. About 70% of projects are rejected. The main sources of funding at this stage are: starting capital, loans from relatives and friends, personal savings.
The second stage is the beginning of production and marketing. The main attention is paid to the establishment of a serial production and the achievement of a minimum volume of realization that ensures profit. About 20% of innovations are sifted. A financial source is the growth of joint-stock (share, charter) capital.
The third stage is the increase in risk. Duration is up to several years. The main tasks are to increase the volume of production, its differentiation. The product is in demand in the market, but the sales system is not fully debugged, so competitiveness remains fragile. As a rule, in the fourth year after the start of mass production and marketing, the second generation of the product is proposed.
Because of the frequent bankruptcies of firms at this stage, it is often called the "valley of doom". Despite the popularity of the product, tough competition makes it necessary to go to new costs for R & D, marketing, advertising, etc. To cover costs, you need to constantly increase sales. Their own funds, as a rule, are not enough; there is a need for loans for investment. However, equity capital, which serves as a guarantee for banks to repay loans, is small. The financial situation is
16
1. Basic concepts and definitions of innovation management
too unreliable to meet the hard solvency criteria that commercial banks apply to borrowers. Therefore, at this stage they apply co-financing with other commercial banks, investment firms and businesses to spread the risk.
The fourth stage is growth. The income from innovation to unit of production stably increases with simultaneous expansion of production. The company tries to develop the goods that already provided it with a base for the production and sale, improves them, to introduce other improvements. Monetary sources: loans from commercial banks. Inclusion in the structure of larger enterprises is possible. The technological base is expanding, the management system is being improved, and the share of the enterprise in the market is increasing.
The fifth stage is maturity and attenuation. The technological base is being expanded, the management system is being improved, and the share of the enterprise in the market is increasing. However, the volume of demand for goods stabilized and the market growth rates are low. The market is almost completely saturated with this commodity. Competitors are actively imitating fakes and goods - imitators. Consumer interest in this product is decreasing. The sales volume does not actually change and even starts to decline. The main task for the enterprise is to protect itself from the pressure of competitors actively producing and selling similar, similar goods-imitators, to start developing new products. The main sources of financing for the company at this stage are the markets for loan capital and securities.
Discussion questions:
Identify the greatest innovations of the last century.
1.What is on your list of suggestions?
2.What led you to put forward those particulars innovations?
3.What do you feel makes them particularly innovative?
17
Innovation management
Research topics:
Find additional information about these ranking systems. What are the main indicators? Why is this ranking important in world economics?
1.Bloomberg Innovation Index
2.EIU Innovation Ranking
3.Global Innovation Index
4.Information Technology and Innovation Foundation (ITIF) Index
5.International Innovation Index
6.Oslo Manual
Practical Exercise:
Triple helix concept
In the world practice, the concept of the «triple helix» Henry
Etzkowitz, which describes innovative development through the dynamics of university, industry and government relations at the national and regional levels, is widely used to build a unified innovation structure. The triple helix model (Triple Helix) is based on the perspective role of the university as the leader of relations with enterprises and the state.
H. Etzkowitz introduces such concepts as the regional space of the triple helix, the space of knowledge, the space of agreement, innovation space, regional innovation organization (RII), which in their totality form the innovative structure of the region.
The initial stage is usually the creation of a space of knowledge − the concentration of the relevant activities for the implementation of R & D. The presence of a «critical mass» of research in a limited area is a prerequisite for the economic development of a region based on scientific knowledge. The concept of «open innovation» is actively developing now, within which intellectual property is viewed as an
18
1. Basic concepts and definitions of innovation management
asset. It is often more cost-effective to acquire the required innovation as part of the «open innovation» process.
According to the theory of Henry Etzkowitz, it is important to consider the concept of «consensus space» (consensus): «The consent space is a neutral territory in the region where representatives of different organizations with different initial positions and perspectives are developing ways of supporting new ideas. The very process of including representatives of different institutional spheres as participants in the discussion on the development of strategies and development plans already gives access to the resources necessary to implement the final plan. »
Within the framework of the innovative structure, Henry Etzkowitz identifies the zone of innovation space. The process of strengthening the innovative component of the development of the region can start from the space of knowledge and linearly move to the space for reaching agreement, and then to the space of innovations or to start with the space for agreement or innovation and beyond. Also, the process can begin right in the innovation space with project development and support initiatives.
Questions:
1.Research. Name three facts from Henry Etzkowitz biography and their connection to triple helix concept.
2.In your opinion, what are the strong and weak points of triple helix concept? Name them. Give an example.
3.What are the major trends of innovation development in Russian Federation according to triple helix concept? Give an example.
19
2. ORGANIZATIONAL STRUCTURE OF INNOVATION MANAGEMENT
Classification of innovative organizations. Research and development (R&D), classification, typology of research organizations; research areas of innovation management; small research business; risk (venture) business.
Classification of innovative organizations. For the successful implementation of innovative processes and innovative activity in modern conditions created a network of organizations of scientifictechnical and innovation sphere, and develop appropriate classification of such organizations. Under the innovative organization (IO) is understood as a structure that is engaged in innovative activities, research and development.
With the development of science, the problem of distinguishing types of scientific organizations has become extremely complicated; their real diversity is so great that the classification cannot be dispensed with by a few groups with clearly fixed features. Different authors distinguish different classification features of IO: the profile of IO activity, the level of specialization, the number of stages of the innovation life cycle, etc. The methodological basis of their classification is the concept of the types of specialization (economic orientation) of the organizational structure. Type of specialization should be attributed to the most important reasons for the classification of organizations.
In Table 2.1 shows a multidimensional classification of the scientific, technical and innovation sphere.
20