This is a short summary of Strategic Management of Technological Innovation (Schilling, 2009), Describing Schilling’s view on the importance of technological innovation.
Chapter 1 Summary
Globalization has been instrumental in technological innovation processes. As companies and firms become more competitive in the world market, they need to harness creativity and channel it to remain competitive. While some companies may remain highly competitive in niche industries, most must change their practices and continue to develop new strategies to perfect improve or totally change their products. Increasing product variants is one way companies can fine tune their approach to this dilemma. Making these changes is no longer difficult to perform as technological innovations in manufacturing, including computer graphic design, flexible manufacturing and robotics have reduced development cycles and increased product development. This has also reduced the amount of time a product it takes for a product to become obsolete, generating more sales for the innovative company and possibly destroying companies that fail to innovate. Schilling also states that a nation’s Gross Domestic Product (GDP) can show the correlation between the technological innovativeness of a nation by underscoring how consumers purchase items. She also stated that GDP cannot accurately reflect a nation’s standard of living.
Innovation by Industry
While the majority of technological innovation comes from industrial firms, it is pointed out that not all companies can successfully harness innovation and channel the creativity of its employees into viable products for purchase on a grand scale. The funnel effect illustrates that a company may produce many HUGHES Page 1 of 4 September 25,...