CHAPTER 1: INTRODUCTION

THE IMPORTANCE OF TECHNOLOGICAL INNOVATION

The Impact of Technological Innovation on Society

INNOVATION BY INDUSTRY: THE IMPORTANCE OF STRATEGY

Research Brief: How long does new product development take?

The Innovation Funnel

The Strategic Management of Technological Innovation

SUMMARY OF CHAPTER

PART I: INDUSTRY DYNAMICS OF TECHNOLOGICAL INNOVATION

CHAPTER 2: SOURCES OF INNOVATION

SEGWAY HUMAN TRANSPORTER

OVERVIEW

CREATIVITY

Individual Creativity

Organizational Creativity

TRANSLATING CREATIVITY INTO INNOVATION

The Inventor

Innovation by Users

Theory in Action: The Birth of the Snowboarding Industry

Research and Development by Firms

Firm Linkages with Customers, Suppliers, Competitors and Complementors

Universities and Government-Funded Research

Private Non-profit Organizations

INNOVATION IN COLLABORATIVE NETWORKS

Technology Clusters

Technological Spillovers

Research Brief: Knowledge Brokers

SUMMARY OF CHAPTER

CHAPTER 3: TYPES AND PATTERNS OF INNOVATION

ERICSSON'S GAMBLE ON 3G WIRELESS

OVERVIEW

TYPES OF INNOVATION

Product versus Process Innovation

Radical Innovation versus Incremental Innovation

Competence Enhancing Innovation versus Competence Destroying Innovation

Architectural Innovation versus Component Innovation

TECHNOLOGY S-CURVES

S-Curves in Technological Improvement

S-curves in Technology Diffusion

Research Brief: The Diffusion of Innovation and Adopter Categories

S-curves as a Prescriptive Tool

Theory In Action: Technology Trajectories and "Segment Zero"

TECHNOLOGY CYCLES

SUMMARY OF CHAPTER

CHAPTER 4: STANDARDS BATTLES AND DESIGN DOMINANCE

THE RISE OF MICROSOFT

OVERVIEW

WHY DOMINANT DESIGNS ARE SELECTED

Learning Effects

Network Externalities

Theory in Action: A Standards Battle in Digital Audio Formats

Government Regulation

The Result: Winner-Take-All Markets

MULTIPLE DIMENSIONS OF VALUE

A Technology’s Standalone Value

Network Externality Value

Competing for Design Dominance in Markets with Network Externalities

Theory in Action: Are Winner-Take-All Markets Good for Consumers?

SUMMARY OF CHAPTER

CHAPTER 5: TIMING OF ENTRY

THE PERSONAL DIGITAL ASSISTANT INDUSTRY

OVERVIEW

FIRST MOVER ADVANTAGES

Brand Loyalty and Technological Leadership

Preemption of Scarce Assets

Exploiting Buyer Switching Costs

Reaping Increasing Returns Advantages

FIRST MOVER DISADVANTAGES

Research and Development Expenses

Undeveloped Supply and Distribution Channels

Immature Enabling Technologies and Complements

Theory in Action: Obstacles to the Hydrogen Economy

Uncertainty of Customer Requirements

FACTORS INFLUENCING OPTIMAL TIMING OF ENTRY

Research Brief: Whether and when to enter?

STRATEGIES TO IMPROVE TIMING OPTIONS

SUMMARY OF CHAPTER

PART II: FORMULATING TECHNOLOGICAL INNOVATION STRATEGY

CHAPTER 6: DEFINING THE ORGANIZATION’S STRATEGIC DIRECTION

REDEFINING HANDSPRING – ARE SMART PHONES A SMART MOVE?

OVERVIEW

ASSESSING THE FIRM’S CURRENT POSITION

External Analysis

Internal Analysis

IDENTIFYING CORE COMPETENCIES AND CAPABILITIES

Core Competencies

Research Brief: Identifying the Firm's Core Competencies

The Risk of Core Rigidities

Dynamic Capabilities

STRATEGIC INTENT

Theory in Action: The Balanced Scorecard

SUMMARY OF CHAPTER

CHAPTER 7: CHOOSING INNOVATION PROJECTS

BOEING’S SONIC CRUISER

OVERVIEW

THE DEVELOPMENT BUDGET

Theory in Action: Financing New Technology Ventures

QUANTITATIVE METHODS FOR CHOOSING PROJECTS

Discounted Cash Flow Methods

Real Options

QUALITATIVE METHODS FOR CHOOSING PROJECTS

Screening Questions

Mapping the Company's R & D Portfolio

Q-Sort

COMBINING QUANTITATIVE AND QUALITATIVE INFORMATION

Conjoint Analysis

Theory in Action: Courtyard by Marriot

Data Envelopment Analysis

SUMMARY OF CHAPTER

CHAPTER 8: COLLABORATION STRATEGIES

THE XENOMOUSE

REASONS FOR GOING SOLO

ADVANTAGES OF COLLABORATING

TYPES OF COLLABORATIVE ARRANGEMENTS

Strategic Alliances

Joint Ventures

Licensing

Research Brief: Using Alliances and Licensing to Establish a Standard

Outsourcing

Collective Research Organizations

CHOOSING A MODE OF COLLABORATION

CHOOSING AND MONITORING PARTNERS

Partner Selection

Partner Monitoring and Governance

SUMMARY OF CHAPTER

CHAPTER 9: PROTECTING INNOVATION

SUN MICROSYSTEMS AND JAVA

OVERVIEW

APPROPRIABILITY

PATENTS, TRADEMARKS, AND COPYRIGHTS

Patents

Patent Law Around the World

Trademarks and Service Marks

Trademark Protection Around the World

Copyright

Copyright Protection Around the World

TRADE SECRETS

THE EFFECTIVENESS AND USE OF PROTECTION MECHANISMS

Theory in Action: IBM and the Attack of the Clones

Wholly Proprietary Systems Versus Wholly Open Systems

Advantages of Protection

Advantages of Diffusion

SUMMARY OF CHAPTER

PART III: IMPLEMENTING TECHNOLOGICAL INNOVATION STRATEGY

CHAPTER 10. ORGANIZING FOR INNOVATION

PROCTER & GAMBLE’S "ORGANIZATION 2005"

OVERVIEW

SIZE AND STRUCTURAL DIMENSIONS OF THE FIRM

Size: Is Bigger Better?

Theory in Action: Xerox and The Icarus Paradox

Structural Dimensions of the Firm

Theory in Action: Shifting Structures at 3M

Mechanistic versus Organic Structures

Size versus Structure

The Ambidextrous Organization: The Best of Both Worlds?

MODULARITY AND "LOOSELY-COUPLED" ORGANIZATIONS

Modular Products

Loosely-Coupled Organizational Structures

MANAGING INNOVATION ACROSS BORDERS

SUMMARY OF CHAPTER

CHAPTER 11: MANAGING THE NEW PRODUCT DEVELOPMENT PROCESS

PRODUCT DEVELOPMENT AT IDEO

OVERVIEW

OBJECTIVES OF THE NEW PRODUCT DEVELOPMENT PROCESS

Maximizing Fit with Customer Requirements

Minimizing Development Cycle Time

Controlling Development Costs

SEQUENTIAL VERSUS PARTLY PARALLEL DEVELOPMENT PROCESSES

PROJECT CHAMPIONS

Theory in Action: The Development of Zantac

Risks of Championing

Research Brief: Five Myths About Product Champions

INVOLVING CUSTOMERS AND SUPPLIERS IN THE DEVELOPMENT PROCESS

Involving Customers

Theory in Action: The "Lead User" Method of Product Concept Development

Involving Suppliers

TOOLS FOR IMPROVING THE NEW PRODUCT DEVELOPMENT PROCESS

Stage-Gate Processes

Quality Function Deployment (QFD) – The House of Quality

Design for Manufacturing

Computer Aided Design/Computer Aided Manufacturing

Theory in Action: Computer-Aided-Design of an America's Cup Yacht

TOOLS FOR MEASURING NEW PRODUCT DEVELOPMENT PERFORMANCE

Theory in Action: Postmortems at Microsoft

New Product Development Process Metrics

Overall Innovation Performance

SUMMARY OF CHAPTER

CHAPTER 12: MANAGING NEW PRODUCT DEVELOPMENT TEAMS

NEW PRODUCT DEVELOPMENT AT DELL COMPUTER

OVERVIEW

CONSTRUCTING NEW PRODUCT DEVELOPMENT TEAMS

Team Size

Team Composition

Research Brief: Boundary Spanning Activities in new product Development Teams

THE STRUCTURE OF NEW PRODUCT DEVELOPMENT TEAMS

Functional Teams

Lightweight Teams

Heavyweight Teams

Autonomous Teams

Theory in Action: "Platform Teams" at Chrysler

THE MANAGEMENT OF NEW PRODUCT DEVELOPMENT TEAMS

Team Leadership

Team Administration

Managing Virtual Teams

Research Brief: Virtual International R & D Teams

SUMMARY OF CHAPTER

CHAPTER 13: CRAFTING A DEPLOYMENT STRATEGY

DEPLOYMENT TACTICS IN THE U.S. VIDEO GAME INDUSTRY

OVERVIEW

TIMING

Strategic Timing of Entry

Optimizing Cash Flow versus Embracing Cannibalization

LICENSING STRATEGIES AND COMPATIBILITY

PRICING STRATEGIES

DISTRIBUTION

Selling Direct versus Using Intermediaries

Strategies for Accelerating Distribution

MARKETING

Major Marketing Methods

Theory in Action: Generating Awareness for Domosedan

Tailoring the Marketing Plan to Intended Adopters

RESEARCH BRIEF: CREATING AN INFORMATION EPIDEMIC

Using Marketing to Shape Perceptions and Expectations

SUMMARY OF CHAPTER