Managing Global Innovation Attila Kurucz University of West-Hungary Department of Business Sciences

Emerging Patterns Market as a challenge for R&D Push versus Pull orientation Financing of Corporate Research Focusing on Market Needs Technology push ↔ Market pull Instruments and organizations of customer- orientation

Importance of Markets I. It is the single most important factor for increasing R&D effectiveness. On the other hand, aligning R&D activities completely with existing customer demand may have negative effects n the role R&D has to fulfill on a corporate level.

Importance of Markets II. Market-oriented R&D management implies two things at the same time: to face the needs of the existing market and to secure long-term innovativeness including non-existing markets. Fundamental conflict: The meeting of the short-term customer demands and securing long-term innovativeness.

Main groups of problem drivers Informal Links + Networks Project + Processes Hierarchical + Functional Regional + Legal

Informal Links + Networks Unable to make use of external networks Incompatible communication networks Language difference between R&D and customer

Project + Processes Obsolete R&D tools Discover customer needs Funding Mismatch between organization and dynamic markets

Hierarchical + Functional Short-term needs vs. long-term innovation Technology-Push thinking Bureaucratic structures Compartmentalization

Regional + Legal Distance between customer and R&D Neglect of new markets

The Instruments of Market-orientation Lead user concept Concept testing Conjoint analysis Quality function Deployment (QFD) Technology strategy – product/market strategy integration Two-channel funding