What is the lifecycle of Innovation
- Innovation –> Patent –> Diffusion –> Profit –> Innovation
What are the two forms of technological Progress?
- Exogenous: Progress from outside of R&D efforts or firm (startup)
- Endogenous: Progress form R&D efforts or inside firm
What are Blockbuster drugs?
- A drug that generates over 1 billion in annual sales
What is product innovation
Incremental or radical improvements to a product
What is a Dominant design and how is it created
- a product standard adopted by the majority of producers
- usually created through radical innovation
How does Technology evolve according to Tushman and Anderson
In cycles:
- Technological Discontinuity (radical new innovation)
- Era of Ferment (chaotic phase where different things are tried
- Dominant Design selected
- Era of incremental Change (small innovations)
- Technological Discontinuity
Where does Innovation come from?
Discoveries: Science & Basic research
Inventions: Technologie & applied research
Innovations: Business & Development
What does Engie do?
Engie is a Energy and Infrastructure company
- Renewable and Low-Carbon Power Generation
- Energy Networks and Infrastructure
- decarbonisation solutions for industries and cities
- Energy trading
What are some potential disruptions to the energy transition?
- Accelerated climate change (extreme weather)
- Technological breakthroughs
- Strong push back against climate ambitions
- Breakdown in supply chains (solar)
- Competitive disruption
- Disruptive market design changes
What are some continuing trends in the energy industry?
+Energy Transition
+Demand for green energy
- Uncertain geopolitical landscape
- Changing regulations and interventions
What are some emerging trends in the energy industry?
+ Need for flexibility
+ Development of Gen Ai
- Wavering support to Eu energy transition
- Delays in scale-up of decarbonisation
What can technological Discontinuity be?
Either:
- Competence enhancing: Builds on same know-how
- Competence destroying: Build on a radically different know-how
What is the effect of competence enhancing or destroying evolutions for the existing players
enhancing: create improved/enlarged market share
destroying: challenge leadership or survivorship of existing firms
What is the definition of a disruptive innovation?
- An innovation that helps create a new market and displaces an earlier technology
What is a Low-end Disruptive innovation?
- Cheaper and lower quality than existing products
–> Attraction of product to mainstream (canon copiers)
What is a High-end Disruptive Innovation?
- Better performance but on dimensions currently not greatly valued
–> Super premium niche
–> value attracts mainstream over time
What are kinds of inertia incumbent firms develop
- Competence- rigidity: Firm is to good at what it currently does
- Hierarchical dependence: decision makers protect their power, processes are slow
- Cognitive framing: Interpretations through mental models built on past success
- Economic Inventive limitations: CEO’s timeline might only be 4 years rather than 20
What are three ways to structuring innovation at the governance level
- CVC
- Corporate Development (unit focus on developing new business)
- Structuring the agile organisation (helping employees decide when to adapt or align)
What is a jiu-jitsu strategy ?
- Avoid direct confrontation and instead exploit the incumbent weaknesses, blind spots or inertia
What is technology & innovation?
- technology: knowledge, tools and techniques used to produce goods and services
- Innovation: commercial application of new ideas.
What is schumpeters creative destruction?
- New technologies replace old ones creating progress
