TECHNOLOGY

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TECHNOLOGY LEARNING
American myth of heroic lone inventors Edison,
Burbank, Ford
During the 20th century, the creation of new
scientific knowledge and technologies grew
increasingly systematized by organizations and
promoted by governmental policies, especially
military needs.
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Theoretical Explanations
Different orgl theories explain diverse aspects
of technological innovations, from learning
processes to organizational survival rates
INNOVATION Any departure from existing
technologies or management practices changes in
routines
Orgl innovations are sources of population
variation for evolutionary selection
retention Institutional isomorphism induces
conformity in corporate RD practices Resource
dependence inhibits organizations from investing
in innovation investigations that yield
competitive advantages Orgl cultures may foster
or inhibit innovative orientation (3M) Inter-
intraorg networks shape innovation dynamics and
diffusion rates
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National Innovation Systems
In US, communism and cancer (military
priorities of the Cold War and biomedical demands
by 1970s) spurred the emergence of an intricate
national innovation system
Hierarchical, multidimensional network of public
and private institutions interacting non-linearly
in a given historical context (Leoncini
199875).
RD expenditures as key indicator of national
capacities to solve complex sociotechnical
problems RD 2.9 of US and Japan GDP 1.8 of
European GDP
European Union's Sixth Framework Programme
(2002-06) sets funding priorities for the EU, but
83 of public funds are still decided by each
nation lthttp//europa.eu.int/comm/research/faq.htm
lgt
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NSF Research Classification
NSFs triadic classification tracks annual
spending patterns

• Basic research on comprehensive knowledge w/o
  specific applications subatomic particles, human
  genome, global climate change
• Applied research to meet specific needs improved
  battlefield communications, genetically modified
  crops
• Development to apply knowledge directed toward
  the production of useful materials, devices,
  systems, or methods, including prototypes
  demonstrate zero-pollution engine universal
  verbal-language translation machine

Decreasing US public sector RD funding after
fall of USSR similar trends in other capitalist
democracies US has 44 of world RD, far ahead of
Japan (1995) but other Group of Seven nondefense
RD is 118 of US spending
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Shifting RD Trends
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Components of US National System

• increased reliance by US firms on sources of RD
  outside their organizational boundaries, through
  such mechanisms as consortia, collaboration with
  US universities and federal laboratories, and
  strategic alliance with other US and foreign
  firms
• (2) expanded performance of RD offshore by US
  firms and increased performance by non-US firms
  of industrial RD within the United States
  especially by Japanese firms
• (3) increased reliance by US universities on US
  and foreign industry for research funding and
  expanded efforts by US universities to license
  and otherwise realize commercial returns from the
  results of academic research.
• Mowery (1998)

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The Triple Helix
A Triple Helix interdependent clusters of
collaborative networks among universities,
businesses, and local-regional governments in
applied development projects to transfer
knowledge into commercial products
services Etzkowitz Leydesdorff. (2000)
Institutionalized conflicts erupt between A
university openness norms of peer-reviewed basic
research grants journal publication (payoff in
disciplinary prestige) B business secrecy norms
of patent-protection for commercial developments
(payoff in startup firms IPO stock options)
Is this system transforming deforming the
universalistic principles on which US European
universities are based?
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Orgl Population Learning
Innovation is closely tied to organizational
learning processes involving routines, collective
memory storage mechanisms, and the socialization
of newcomers (individual learning). (Levitt
March 1999)
Argyris Schön (1978) proposed two orgl
learning loops Single-loop Firm uses data to
improve performance by adjusting its routines,
taking for granted its goals values Double-loop
Firm changes core assumptions about its mission,
underlying values beliefs (transform culture)
Chris Argyris

• Population-level learning systematic change in
  nature and mix of orgl routines in a
  populationarising from experience.
• (Miner Haunschild 1995)
• Mimetic orgl interaction copy others routines
• Broadcast transmission peak source diffuses a
  new practice
• Population learning of routines cooperative
  interaction, e.g., industry assn, standards
  board, RD consortium

Anne S. Miner
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Innovator Organizations
Organizational and population learning processes
imply an innovation continuum from a tiny
minority of innovator organizations to the large
majority reproducer orgs
Most orgs resource limitations prevent adequate
RD investments necessary to generate new
technological knowledge and killer apps. They
rely on exploitation of existing technology to
wring small competitive advantages (March 1999)
James G. March
Innovator orgs engage in exploration of new
science technology (1) small startup
entrepreneurs use investors capital to pursue
high-risk, unproven technologies (2) large
deep-pocket corporations (3M, H-P, Microsoft)
maintain large subunits for routinized RD EX
New biotech firms pharmaceuticals
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Increments vs Breakthroughs
Most innovations are incremental competence
enhancing improvements that organizations can
easily fit into their existing routines
capabilties. These small adaptations modestly
increase worker performance and orgl
productivity without disruptively transforming
organizational populations. EX typewriters
PowerPoint Google new, improved Tide
Much rarer competence destroying breakthroughs
by new entrants threaten status quo, forcing all
orgs to restructure their skills routines
radically to survive an inevitable shake-out EX
railways, airplanes -- but Internet, genetic
modification?
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Innovation Journey
Case studies of organizational innovation
processes inside firms, at the Minnesota
Innovation Research Program led by Andrew Van de
Ven, refute the notion that discoveries are a
simple linear pathway extending from initial
ideas through research development resulting in
commercialized products.
Innovation journey is chaotic process that
increases organizations learning capacity
nonlinear cycle of divergent and convergent
activities that may repeat over time and at
different organizational levels if resources are
obtained to renew the cycle Van de Ven et
al. (1999)
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Three Phases
Appearances are deceiving Innovation journeys
three activity phases resemble a linear sequence

• But actual orgl innovation experiences alternate
  between
• unpredictable discoveries made under
  divergent-chaotic conditions
• systematic testing under more stable-convergent
  conditions

• THE INITIATION PHASE
• Gestation in extended period lasting several
  years
• Shocks from internal external sources trigger
  concentrated efforts
• Plans developed and submitted to controllers for
  resources to launch development

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Three Phases, cont.
THE DEVELOPMENTAL PHASE 4. Proliferation of
numerous ideas and activities on divergent,
parallel, convergent paths 5. Setbacks and
mistakes cause resource and development time
lines to diverge 6. Shifting success-failure
criteria trigger power struggles between project
managers and resource controllers 7. Innovation
personnel participate in highly fluid,
emotionally charged ways 8. Investors and top
management frequently involved as
checks-and-balances 9. Relationships with other
organizations lock innovation units into specific
action courses with unintended consequences 10.
Involvement with competitors, trade associations,
government agencies to create supportive
infrastructure
THE IMPLEMENTATION/TERMINATION PHASE 11.
Adoption of innovation by linking, integrating
new and old or fitting innovation to local
situation 12. Termination by implementing
innovations or when resources run out
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References
Anderson, Philip. 1999. Collective
Interpretation and Collective Action in
Population-Level Learning Technological Choice
in the American Cement Industry. Advances in
Strategic Management 16277-307. Argyris, Chris
Donald Schön. 1978. Organizational Learning A
Theory of Action Perspective. Reading, MA
Addison-Wesley. Etzkowitz, Henry and Loet
Leydesdorff. 2000. The Dynamics of Innovation
From National Systems and Mode 2 to a Triple
Helix of University-Industry-Government
Relations. Research Policy 29109-123. Levitt,
Barbara and James G. March. 1988. Organizational
Learning. Annual Review of Sociology
14319-340. March, James G. 1999. The Pursuit of
Organizational Intelligence. Malden, MA
Blackwell. Mowery, David C. 1998. The Changing
Structure of the US National Innovation System
Implications for International Conflict and
Cooperation in RD Policy. Research Policy
27639-654. Van de Ven, Andrew H., Raghu Garud,
Douglas E. Polley and Sankaran Venkataraman.
1999. The Innovation Journey. New York Oxford
University Press. Tushman, Michael and Philip
Anderson. 1986. Technological Discontinuities
and Organizational Environments. Administrative
Science Quarterly 31439-465.