INNOVATION DRIVES PROGRESS BUT CAN BE _ _ _ _ _ & VERY _ _ _ _ _ _ _ _ _. THIS DETERS MANY FIRMS – SO THE GREAT R&D, THE REAL GAME CHANGING STUFF IS OFTEN LEFT TO _ _ _ _ _ FIRMS. THEY _ _ _ _ _ _ A LOT OF _ _ _ _ _ IN TRYING TO COME UP WITH THE NEXT BIG THING. THEY DO THIS IN THE HOPE OF GETTING GREAT _ _ _ _ _ _. HOWEVER IF THEIR GREAT IDEA CAN BE _ _ _ _ _ _ BY OTHER FIRMS (WHO HAVE _ _ _ _ _ _ NOTHING) IT UNDERMINES THEIR ABILITY TO MAKE _ _ _ _ _, AND MIGHT DISCOURAGE THEM TO DO ANY FURTHER _ _ _. NO _ _ _ MEANS NO PROGRESS, THEREFORE FIRMS MUST BE ALLOWED TO _ _ _ _ _ _ _ THEIR INNOVATIVE IDEAS. R I S K YE X P E N S I V E L A R G E I N V E S T M O NE Y P R O F I T C O P I E D R I S K E D S A L E S R & D P R O T EC T

Key ideas: Understand the simple relationship between R&D and Innovation Factors affecting R&D Evaluate the importance of R&D 4 types of innovation Adaptive v innovative

CONSIDER THIS ETHICAL ISSUE You have studied/worked hard for an activity– and your classmate hasn’t. The teacher has indicated there are a limited number of interesting rewards available for the best performers. HOW WOULD YOU FEEL ABOUT YOUR CLASSMATE TRYING TO COPY YOUR ANSWERS?

SO INNOVATION IS PROTECTED. THE INNOVATORS HAVE (USUALLY TEMPORARY) MONOPOLY ACCESS TO THE MARKET THEY HAVE CREATED. THIS HELPS BOOST SALES AND RECUPERATE THEIR INVESTMENT. SO HOW IS INNOVATION PROTECTED? R&D – WHEN SUCCESSFUL – LEADS TO IMPROVED EFFICIENCY & PROVIDES FINANCIAL REWARD. GREATER PROFIT. INNOVATIVE FIRMS THRIVE! IT IMPROVES BRAND LOYALTY – AND IN SOME INDUSTRIES LEADS TO DEVELOPMENT AT A ‘SOCIETY’LEVEL.

MUST BE PURCHASED FROM THE GOVERNMENT – AND WHEN RECEIVED IT GIVES THE ORIGINAL INVENTOR UNDISPUTED RIGHTS TO DENY PERMISSION TO ANY OTHER FIRM TO MAKE THE SAME PRODUCT FYI : SIMILIAR PRODUCTS CAN BE MADE – BUT NOT COPYING THE KEY FEATURES OF THE ORIGINAL PATENT – WHICH IS WHY THE KEY FEATURES MUST BE IDENTIFIED

SAME AS PATENT – BUT REFERS SPECIFICALLY TO ‘ALL FORMS OF MEDIA PRESENTATIONS – IE MUSIC, WRITTEN TEXT, FILMS, ART, CARTOONS ETC’ REMEMBER THIS STORY? THICKE & WILLIAMS HAD TO PAY $7.3m FOR THE INFRINGEMENT OF COPYRIGHT TO THE ‘MARVIN GAYE ESTATE’ BECAUSE ‘BLURRED LINES’ SOUNDED TOO MUCH LIKE ‘GOT TO GIVE IT UP’

GIVES PROTECTION TO (1) LOGOS, SLOGANS, DESIGNS & PHRASES + (2) QUALITIES DISTINCTIVE TO THE DESIGN EG COLOUR, SHAPE OF THE LETTERS ETC GARETH BALES TRADEMARK In this case it doesn’t mean you and I cant make that hand symbol – it just means we cant make an image of it, put a number in the middle of it – and try make money from selling it.

“everything that can be invented has been invented” Charles H. Duell Commissioner of US patent office in 1899 [apocryphal quote]

Todays big topic Different types of innovation : the (other) 4 P’s (page , Loykie)

PRODUCT INNOVATION : NEW PRODUCTS – OR SIGNIFICANTLY IMPROVED VERISON OF EXISTING PRODUCT : FLAT SCREEN TV PROCESS INNOVATION : NEW – OR SIGNIFICANTLY IMPROVED – WAYS OF DOING THINGS POSITIONING INNOVATION : CREATING A NEW PURPOSE FOR AN EXISTING PRODUCT PARADIGM INNOVATION : AN IDEA SO RADICAL IT CHANGES THE WAY AN INDUSTRY OPERATES

DO YOU KNOW THE FACEBOOK STORY?

User Innovation: A Path to Entrepreneurship Solve your problem. Share your solution. Start your venture. We are going to doing a super- accelerated version of this, in pairs. [1] identify your ‘problem’ [2] do some simple research to identify the extent of the problem [3] create a prototype solution to the problem [4] create an infomercial See next slide before actually starting….

WHO IS MORE LIKELY TO BE CREATIVE? THE ANSWER IS : THEY ARE EQUALLY LIKELY – THEY WILL JUST SHOW DIFFERENT TYPES OF CREATIVITY INNOVATIVE CREATIVITY * Outside the box, radical change GREAT IDEAS – BUT A LOT OF “MISSES” TOO ADAPTIVE CREATIVITY * Systematic, refining, inside the box STEADY BUT SLOW

Key ideas: Understand the simple relationship between R&D and Innovation Factors affecting R&D Evaluate the importance of R&D 4 types of innovation Adaptive v innovative