L12: Business Development Options EC10 Commercialisation & Innovation L12: Business Development Options

EC10 Commercialisation & Innovation Outline Business Models Predictive Models Building a Responsive Organisations Future Patterns of Innovation L12: Business Development Options

EC10 Commercialisation & Innovation 1. Business Models EC10 Innovation & Commercialisation

Innovation Business Models EC10 Commercialisation & Innovation Innovation Business Models Prices altered to persuade customers to purchase more L12: Business Development Options

EC10 Commercialisation & Innovation 2. Predictive Models

EC10 Commercialisation & Innovation “Models describe rather than predict” Storey, 1994 L12: Business Development Options

3. Responsive Knowledge-Based Organisations EC10 Commercialisation & Innovation 3. Responsive Knowledge-Based Organisations

EC10 Commercialisation & Innovation “If, in the wake of globalisation, financial and manufacturing techniques become ever more capable of imitation, then their competitive advantage is correspondingly diminished . . . in this sort of world, the ability to learn faster than the competition may be the only sustainable advantage.” Pettigrew, A. and Whipp, R. (1991), Managing Change for Competitive Success, Oxford, Blackwell  L12: Business Development Options

Knowledge & Creativity EC10 Commercialisation & Innovation Knowledge & Creativity The creation of the knowledge driven economy is not some far distant dream. It is all around us. The creativity driving it affects every stage of the manufacturing process. Product design. Innovation. Marketing and after sales service. (Mandelson, P, 1998:31). L12: Business Development Options

EC10 Commercialisation & Innovation The increasing importance of the knowledge driven economy is an international trend which affects economies at all levels of development. The World Bank (1998) World Development Report "For countries in the vanguard of the world economy, the balance between knowledge and resources has shifted so far towards the former that knowledge has become perhaps the most important factor determining the standard of living...... Today's most technologically advanced economies are truly knowledge-based." L12: Business Development Options

Knowledge Driven Economy EC10 Commercialisation & Innovation Knowledge Driven Economy “A knowledge driven economy is one in which the generation and the exploitation of knowledge has come to play the predominant part in the creation of wealth. It is not simply about pushing back the frontiers of knowledge; it is also about the more effective use and exploitation of all types of knowledge in all manner of economic activity. (DTI, 1998) http://www.dti.gov.uk/comp/competitive/an_reprt.htm L12: Business Development Options

Knowledge Management Drivers EC10 Commercialisation & Innovation Knowledge Management Drivers Information and Communications Technology (ICT) Increased speed of scientific and technological advance. acceleration in the growth of the stock of codified scientific and technological knowledge Global competition Reduced communications Trade & capital liberalisation Reduced transactions costs Changing demand Rising income Environmental Pressures DTI, 1998 L12: Business Development Options

Impact on Technology Ventures EC10 Commercialisation & Innovation Impact on Technology Ventures Capabilities Ability to adapt and to embrace change encompassing the exploitation of science and technology, enterprise and innovation, capital markets, people and skills collaboration, both within firms in the way they organise themselves and their employees, and between firms in the way they interact in networks and in clusters competition increased competitive pressures from more open markets and the growth in foreign direct investment are interacting with the forces driving innovation and increased consumer choice. L12: Business Development Options

DTI Policy Perspectives EC10 Commercialisation & Innovation DTI Policy Perspectives “We need to improve our capacity to create and exploit scientific knowledge and technology successfully. Securing this improvement, together with the need for greater dynamism in the knowledge driven economy, requires improved enterprise and innovation. Finance for enterprise depends in turn on well functioning capital markets. Firms also need access to skilled workers and the successful organisations will be those who make the best use of their people and skills.” L12: Business Development Options

4. Future Patterns of Innovation EC10 Commercialisation & Innovation 4. Future Patterns of Innovation

EC10 Commercialisation & Innovation 4. “useful knowledge cannot be really said to be created unless it is part of a broader process of knowledge diffusion/distribution. Knowledge creation and diffusion should thus be understood as part of the same process” (OECD, 1997). L12: Business Development Options