Chapter 7 WPC 480

patent

(n.) exclusive rights over an invention; copyright; (v.) to arrange or obtain such rights; (adj.) plain, open to view; copyrighted

markets-and-technology framework

A conceptual model to categorize innovations along the market (existing/new) and technology (existing/new) dimensions.

Radical Innovation

An innovation that draws on novel methods or materials, is derived either from an entirely different knowledge base or from a recombination of the existing knowledge bases with a new stream of knowledge.

Decline Stage

Demand falls, often rapidly. Strong pressure on prices Four strategic options to pursue: Exit: bankruptcy / liquidation Harvest: reduce further investments Maintain: support at a given level Consolidate: buy rivals

Growth Stage

Demand increases rapidly. Product / service standards emerge

reverse innovation

Innovations created for or by emerging-economy markets and then imported to developed-economy markets.

Entrepreneurship

The process by which people undertake economic risk to innovate—to create new products, processes, and sometimes new organizations.

Shakeout Stage

When growth and profitability are slowing due to strong competition; Growth has slowed; Intense competition; Increasing industry overcapacity; Decreased profitability; Increased cost cutting; Increased failures

first-mover advantage

a competitive advantage that occurs when a firm is first to offer desirable products or services that secure customer loyalty

innovation ecosystem

a firm's embeddedness in a complex network of suppliers, buyers, and complementors, which requires interdependent strategic decision making

Architectural Innovation

a new product in which known components, based on existing technologies, are reconfigured in a novel way to attack new markets

Platform Business

an enterprise that creates value by matching external producers and consumers in a way that creates value for all participants, and that depends on the infrastructure or platform that the enterprise manages.

disruptive innovation

an innovation that leverages new technologies to attack existing markets from the bottom up

incremental innovation

an innovation that squarely builds on an established knowledge base and steadily improves an existing product or service

crossing the chasm framework

conceptual model that shows how each stage of the industry life cycle is dominated by a different customer group

Innovation Process

idea, invention, innovation, imitation

Platform Ecosystems

market environment in which all players participate relative to the platform.

winner-take-all markets

markets where the market leader captures almost all of the market share and is able to extract a significant amount of the value created

Maturity Stage

stage of the product life cycle when industry sales reach their peak, so firms try to rejuvenate their products by adding new features or repositioning them

Introduction Stage

stage of the product life cycle when innovators start buying the product

Entrepreneurs

the agents that introduce change into the competitive system

innovation

the commercialization of any new product or process, or the modification and recombination of existing ones

Industry Life Cycle

the five different stages - introduction, growth, shakeout, maturity, and decline - that occur in the evolution of an industry over time Supply and demand changes as industries age Each stage requires different competencies

strategic entrepreneurship

the pursuit of innovation using tools and concepts from strategic management

social entrepreneurship

the pursuit of social goals while creating a profitable business

invention

the transformation of an idea into a new product or process, or the modification and recombination of existing ones

Trade Secret

valuable information used in a commercial enterprise and not known to the public