Science, Technology, Technic Conventional definitions: SCIENCE develops theoretical and not-finalized knowledge TECHNOLOGY is finalization of scientific knowledge for useful uses TECHNIC is materialization of science and technology into machines, projects, products Dasgupta and David definitions (based on social organization): SCIENCE as public good, related to the specific targets of scientific community (>> publication, openness) TECHNOLOGY as private good, related to private firms targets: market shares, profit (>> secrecy)

Invention and Innovation (after Shumpeter: focus on technical materialization and utilization) INVENTION: new idea or scientific concept, or technological novelty not technically realized/materialized yet INNOVATION: realization of an invention (or of another non-invention idea) into a new product or production process, together with its commercial utilization (e.g.: design, manufacturing, marketing of an invention) Wide scope – not only within the technological field - of the term “innovation”: e.g. smart recombining existing knowledge; Changes in organizational forms of the firm Using existing products to satisfy different demand types or markets

Radical Innovation and Incremental Innovation Innovation differ in terms of novelty degree in respect of existing Technology Organization Demand Incremental innovations are improvements of a exiting “dominant” design, product concept, productive process or demand – they appear quite frequently Radical innovations represent breaks in trends compared with existing product/processes (e.g. transistor, computer) - they appear seldom There is some “continuity” between I. and R. innovations…

Product vs Process innovations Innovation might refer to products or productive process Service industries and manufacturing industries show different propensity to innovate Product and process innovations are often associated

Innovation and Diffusion Diffusion is defined as the adoption process of an innovation by industry users or final consumers It is bundled to the economic relevancy of the innovation for the economic system

SOURCES OF INNOVATION RESEARCH AND DEVELOPMENT (R&D) is an organized and formalized activity by firms or other subjects oriented at developing innovations Research and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications. R&D is differentiated (frascati Manual, OECD 2015) Basic research is experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundation of phenomena and observable facts, without any particular application or use in view. Applied research is also original investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific practical aim or objective. Experimental development is systematic work, drawing on existing knowledge gained from research and/or practical experience, which is directed to producing new materials, products or devices, to installing new processes, systems and services, or to improving substantially those already produced or installed. R&D covers both formal R&D in R&D units and informal or occasional R&D in other units. Importance of each category differs among industries and might require different competences and being developed by different organizations (firms, universities, research centers, etc.)

SOURCES OF INNOVATION (2) Informal learning It is another source of innovation Learning and knowledge both represent key innovation sources in contemporary economies Usually, learning was considered as an automatic process, capable to induce, over time, average-cost reduction for the firm; This interpretation is not able to fully mirror articulation and complexity of the learning process, which shows heavy differences in terms of: paths, learning mechanisms (e.g. by doing, by using, by interacting, etc.), links between learning and further knowledge sources, relations between competences and learning, etc.

Further Key Concepts A) INNOVATION AS A PROCESS Linear Model: Research>>Development>>Production>>Marketing

Chain Model: Market Potential Perception>>Analytic Design (based on existing knowledge and innovations)>> Tests + feed-backs. -

Key features of the chain-model Analytic design = exploring how combining (or recombining) existing knowledge components; Innovation not as a fully new thing, but as a smart recombination of existing components Feedbacks (F) provide useful information both to down/ and upper phases of the innovation process – e.g. tests (with analytic design; production/distribution-marketing) New analytic design might (not always!) derive from scientific knowledge advancements

Adequate level of scientific and technological knowledge is needed (useful), not just to generate new analytic design, but along the whole innovation chain as well! Innovation (e.g. in products) might allow innovation in related sectors/fields – e.g. new scientific instruments; advancement in science, etc. (enrichment of the mono-directionality of the linear model – from science to innovation!)

B) Relationship between science/Technology and Innovation As seen above…technology might pave the way to science (e.g Bessmer – metallurgy; transistor – solid status science) Role of Instruments (e.g. microscope! Pasteur; Telescope! Astronomy) C) Fundamental role played by “the firm” It learns; coordinates the (internal) innovation process and networks external subjects; invests in innovation activity. However, firms differ one from another and change over time (it is very “difficult” to analyze them…!)

D) Support from Institutions is relevant: universities, public research institutes, public policies – government - ; financial institution – venture capital. The role played by institution has to be explored and understood… E) Innovation as a “system” (see D, for inistance); many heterogeneous subjects, networks and relationships are involved (it is a “collective” phenomenon) F) innovation as “dynamic” force within a not equilibrium-oriented economic system and key driver of industrial dynamics and, more in general, structural evolution of advanced systems (see Atkinson and Ezell – USA).