INTRODUCTION)TO)INNOVATION)AND)ENTREPRENEURSHIP) 2! INNOVATION)TYPES)AND)SOURCES) 7! RECOGNISING)AND)EVALUATING)OPPORTUNITIES) 10!
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1 Table&f&Cntents& INTRODUCTION)TO)INNOVATION)AND)ENTREPRENEURSHIP) 2! INNOVATION)TYPES)AND)SOURCES) 7! RECOGNISING)AND)EVALUATING)OPPORTUNITIES) 10! ACTING)ON)THE)OPPORTUNITY) 12! EXPLOITING)THE)OPPORTUNITY) 13! STRATEGY,)DECISION:MAKING)AND)INNOVATION) 15! INNOVATION)AND)MANAGEMENT) 20! READING)NOTES) 23! DEFINING)YOUR)INDUSTRY)FOCUS)(MEYER)&)CRANE)) 23! ENTREPRENEURSHIP)&)INNOVATION)PART)I)(MAZZAROL)) 27! EXPLORING)INNOVATION)(SMITH)) 34! STRATEGIC)MANAGEMENT)OF)TECHNOLOGICAL)INNOVATION)(SCHILLING)) 38! HOW)COMPETITION)STRENGTHENS)START:UPS)(BURKE)&)HUSSELS)) 42! ORGANIZING)FOR)INNOVATION)(TUSHMAN)&)NADLER)) 43! ROB)ADAMS)ON)MARKET)VALIDATION) 45! OPPORTUNITY RECOGNITION: WHERE ENTREPRENEURSHIP BEGINS (BARON)) 48! ENTREPRENEURSHIP:)THEORY,)PROCESS,)PRACTICE)(FREDERICK)&)KURATKO)) 53! WHY)THE)LEAN)START:UP)CHANGES)EVERYTHING))(HBR)) 58! ENTREPRENEURSHIP)&)INNOVATION)PART)II)(MAZZAROL)) 60! 1
2 Intrductin&T&Innvatin&And&Entrepreneurship& Gal 1: T prvide students with a fundatinal knwledge f entrepreneurship and innvatin, including the rle f innvatin and entrepreneurship fr grwth and wealth creatin. Gal 2: T explre hw entrepreneurial and innvative activities are influenced by individual-level (e.g. experience and mind-set), rganisatinal (e.g. leadership, culture and strategy) and institutinal (e.g. industry and cuntry differences) factrs. Interested in individual factrs in entrepreneurship t sme extent, but als lking at firm innvatin and institutinal factrs Industry factrs, cuntry/reginal features Strategy, rganizatinal culture/structures & prcesses Gal 3: T explre different types f entrepreneurial enterprise and innvatin activity that are part f New Zealand s innvatin system, and hw these activities exist in a glbal cntext. Innvatin DEF The cnversin f knwledge & ideas int new r imprved prducts, prcesses r services, which may be fr cmmercial use r fr the public gd Entrepreneurship DEF The prcess f identifying, creating r seizing an pprtunity and pursuing it t create smething f value regardless f current available resurces What is entrepreneurship? Prcess whereby individuals/firms/grups undertake business ventures cntaining an element f risk, with a view t creating and capturing value within a market Nt necessarily financial value Desn t have t create smething new Visin, determinatin, passin Prcess f identifying an pprtunity, acting the pprtunity: starting up, and the expliting the pprtunity fr grwth 2
3 Fr ur needs: Individual, rganisatinal & macr levels Often but nt always - invlving innvatin Value nt necessarily = financial gains Nt crner shp, café (unless...), lifestyle Glbal trends: frm managed t knwledge ecnmy; glbalisatin; ICT; scial entrepreneurship 2/3 necessity & 1/3 pprtunity: what are the implicatins? Wh is an entrepreneur? Organise factrs f prductin (set up businesses) & take risks with a view t a prfit, self-emplyed/business wner, ften als innvatrs resurce shifters (Drucker) Usually self-emplyed, but nt self-emplyed peple are entrepreneurs Made, nt brn Innvatr, develper, seizes pprtunities, adds value, assumes risk, creates wealth Sme Myths Mney, fame & glry Better than average peple Mstly cllege drp-uts It s nt what yu knw it matters wh yu knw Cmmn Appraches Mst ften cited characteristics Determinatin; drive; tlerance fr failure & fr ambiguity; seeking feedback; internal lcus f cntrl; calculated risk taking; energy; visin; independence Sme argue there are cmmn psychlgical traits Cntext matters: experience, mtivatin, knwledge, culture, backgrund, scialisatin 3
4 Enterprising Orientatin Enterprise: a set f attributes that characterise entrepreneurial behaviur (Jhnsn, 1988) Enterprising rientatin tendency t psitively demnstrate attributes assciated with enterprise, which can be measured. Calculated risk-taking Creativity & ability t see new pprtunities Mtivatin & Drive Creativity Creative tendency: able t prduce a large number f ideas that are uncmmn, new, imaginative, r unusual, can shift frm ne apprach t anther, can perceive ideas differently cmpared t the usual/established bvius way (Caird, 2005) Creativity can be learned (Amabile, 1996) thrugh techniques, tactics and strategies, EG: Brainstrming (withhlding judgment t explre) 7 hats (explicitly applying different perspectives) Lateral thinking (mve frm ne knwn idea t generating new ideas) Mtivatin High need fr achievement: arusal when striving fr specifically difficult and challenging gals, supprted by high persnal standards f excellence may be assessed fr success r failure Higher need fr autnmy: the need t d and say as ne likes despite cnventinal expectatin (Caird, 2005); nt wrk fr smene else (Shane, 2008) Internal lcus f cntrl: takes respnsibility fr successes and failures, attributing utcmes t ability and effrt Intrinsic / cntextual mtives: ften in additin t the abve, need t slve a burning prblem Necessity entrepreneurs: different set f drivers 4
5 Experience Types Wrk Industry knwledge Prfessinal experience Educatinal Family Persnal Passin Experience: cmpetence helps in reducing uncertainty Entrepreneurial Attitudes Cntext specific: Silicn Valley vs. Malaysia / Yemen Rle f educatin, plicy, media Rle f skills and experience (vs. traits and attitudes) Entrepreneurship refers t the activities invlved in the discvery, evaluatin and explitatin f pprtunities* Recgnizing pprtunities Evaluating pprtunities Expliting pprtunities! Why Des Innvatin Matter? The pwer f creative destructin (Schumpeter): Innvatin and technlgical change are the main drivers f ecnmic grwth at rganisatinal, sectr and ecnmy- wide levels Thus we need mre f it, we als knw that it cmes in waves: recall the S-Curve Defining The Cncepts: Innvatin Explitatin f nvel ideas, practices r bjects, which ffer nvel value and lead t cmmercial, r ther, gains Nvel can range frm incremental t radically new Nvelty is subjective Inventin & Innvatin Inventin: frmulatin f new ideas fr prducts r prcesses R&D desn t make yu innvative it makes yu inventive, desn t necessarily lead t new prducts 5
6 Innvatin: creatin f nvelty that prvides ecnmic value t the rganisatin (and ther stakehlders) Pints f Cnsideratin Histrical baggage f cnfusin (histrical rmanticism)! Histrical belief in science-push apprach t innvatin (still lasts in sme ways tday) Often linked t significant time lag: why is that?! Time lag between when smething is invented and when it is turned int an innvatin that is successfully cmmercialized Inventin can precede innvatin (any specific type?) Characteristic t certain types f rganisatins Bth can be successfully encuraged & frm a part f rganisatinal strategy: R&D; peple; rganisatinal design; strategy! Xerx vs. Apple n selling the persnal cmputer Inventin-Innvatin-Cmmercialisatin Nt the nly pssible path / frm f innvatin Diffusin is increasingly subject f innvatin (e.g. scial media, nvel distributin channels) Cmmercialisatin & diffusin ften frgtten in strategic planning Understanding diffusin as prcess f stakehlder management is really imprtant Als have t cnsider ntin f dminant design, Prblems With Definitins Different streams and fcus f research Innvatin Originally cncerned with R&D, NPD (new prduct develpment) and marketing f prduct 6
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