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Strategic Management of Technological Innovation 6 2020 9781260087956 Melissa Schillings Strategic Management of Technological Innovation, is the #1 innovatoin strategy text in the world. It approaches the subject of innovation management as a strategic process, and is organized to mirror the strategic management process used in most strategy textbooks, progressing from assessing the competitive dynamics of a situation to strategy formulation, to strategy implementation. While the book emphasizes practical applications and examples, it also provides systemic coverage of the existing research and footnotes to guide further reading. It is designed to be a primary text for courses in strategic management and innovation and new product development. It is written with the needs of both business students and engineering students.
Strategic Management of Technological Innovation
Strategic Management of Technological Innovation

Strategic Management of Technological Innovation, 6th Edition

ISBN10: 1260087956 | ISBN13: 9781260087956
By Melissa Schilling

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* The estimated amount of time this product will be on the market is based on a number of factors, including faculty input to instructional design and the prior revision cycle and updates to academic research-which typically results in a revision cycle ranging from every two to four years for this product. Pricing subject to change at any time.

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Melissa Schillings Strategic Management of Technological Innovation, is the #1 innovatoin strategy text in the world. It approaches the subject of innovation management as a strategic process, and is organized to mirror the strategic management process used in most strategy textbooks, progressing from assessing the competitive dynamics of a situation to strategy formulation, to strategy implementation. While the book emphasizes practical applications and examples, it also provides systemic coverage of the existing research and footnotes to guide further reading. It is designed to be a primary text for courses in strategic management and innovation and new product development. It is written with the needs of both business students and engineering students.

Chapter 1 

Introduction 1

The Importance of Technological  Innovation 1

The Impact of Technological Innovation  on Society 2

Innovation by Industry: The Importance of Strategy  4

The Innovation Funnel 4

The Strategic Management of Technological Innovation  6

Summary of Chapter  9

Discussion Questions 10

Suggested Further Reading 10

Endnotes  10



Chapter 2 Sources ofInnovation  15

The Rise of “Clean Meat” 15

Overview  19

Creativity  20

Individual Creativity 20

Organizational Creativity 22

Translating Creativity Into Innovation  24

The Inventor  24

Innovation by Users 26

Research and Development by Firms  27

Firm Linkages with Customers, Suppliers, Competitors, andComplementors  28

Universities and Government-Funded Research  30

Private Nonprofit Organizations  32

Innovation in Collaborative Networks  32

Technology Clusters 33

Technological Spillovers 36

Summary ofChapter  37

DiscussionQuestions  38

Suggested Further Reading 38

Endnotes  39


Chapter 3 Types andPatterns of Innovation  43

Innovating in India: The Chotukool Project  43

Overview  46 Types ofInnovation  46

Product Innovation versus Process Innovation  46

Radical Innovation versus Incremental Innovation  47

Competence-Enhancing Innovation versus Competence-DestroyingInnovation  48

Architectural Innovation versus Component Innovation  49

Using the Dimensions 50

Technology S-Curves 50

S-Curves in Technological Improvement  50

S-Curves in Technology Diffusion 

53 S-Curves as a Prescriptive Tool  54

Limitations of S-Curve Model as a Prescriptive Tool  55

Technology Cycles  56

Summary of Chapter  62

Discussion Questions 63

Suggested Further Reading 63 Endnotes  64


Chapter 4 StandardsBattles, Modularity,  and PlatformCompetition  67

A Battle for Dominance in Mobile Payments  67

Overview  71 WhyDominant Designs Are Selected  71

Learning Effects  72

Network Externalities 73

Government Regulation 76

The Result: Winner-Take-All Markets  76

Multiple Dimensions of Value 77

A Technology’s Stand-Alone Value  78

Network Externality Value 78

Competing for Design Dominance  in Markets with Network Externalities  83

Modularity and Platform Competition  87

Modularity  87 PlatformEcosystems  89

Summary of Chapter  91Discussion Questions  92

Suggested Further Reading 92

Endnotes  93


Chapter 5 Timing ofEntry  95

UberAIR  95

Overview  98

First-Mover Advantages 98

Brand Loyalty and Technological  Leadership 98

Preemption of Scarce Assets 99

Exploiting Buyer Switching Costs  99

Reaping Increasing Returns Advantages  100

First-Mover Disadvantages 100

Research and Development Expenses  101

Undeveloped Supply and Distribution Channels  101

Immature Enabling Technologies and Complements  101

Uncertainty of Customer Requirements  102

Factors Influencing Optimal Timing of Entry  104

Strategies to Improve Timing Options  108

Summary of Chapter 108

Discussion Questions 109

Suggested Further Reading 109

Endnotes  110



Tesla, Inc. in 2018 115

Overview  123

Assessing the Firm’s Current Position  123

External Analysis  123

Internal Analysis  127

Identifying Core Competencies and Dynamic Capabilities  131

Core Competencies  131

The Risk of Core Rigidities 132

Dynamic Capabilities 133

Strategic Intent  133

Summary of Chapter 137

Discussion Questions 138

Suggested Further Reading 139

Endnotes  139


Chapter 7 Choosing Innovation Projects  141

Where Should We Focus Our Innovation Efforts?An Exercise  141

Overview  146

The Development Budget 146

Quantitative Methods For Choosing Projects  149

Discounted Cash Flow Methods 149

Real Options  152

Disadvantages of Quantitative  Methods 154

Qualitative Methods for Choosing  Projects 154

Screening Questions 155

The Aggregate Project Planning Framework  157

Q-Sort  159

Combining Quantitative and Qualitative Information  159

Conjoint Analysis  159

Data Envelopment Analysis 161

Summary of Chapter 163

Discussion Questions 163

Suggested Further Reading 164

Endnotes  164


Chapter 8 Collaboration Strategies  167

Ending HIV? Sangamo Therapeutics and Gene Editing  167

Overview  175

Reasons for Going Solo 175

            1. Availability ofCapabilities  176

2. Protecting ProprietaryTechnologies  176

3. Controlling Technology Development and Use  176

4. Building and RenewingCapabilities  177

Advantages of Collaborating 177

1. Acquiring Capabilities and Resources Quickly  177

2. Increasing Flexibility  178

3. Learning from Partners  178

4. Resource and Risk Pooling  178

5. Building a Coalition around a Shared Standard  178

Types of Collaborative Arrangements  178

Strategic Alliances 179

Joint Ventures  181

Licensing  182

Outsourcing  183

Collective Research Organizations  184

Choosing a Mode of Collaboration  184

Choosing and Monitoring Partners  187

Partner Selection  187

Partner Monitoring and Governance  191

Summary of Chapter 192

Discussion Questions 193

Suggested Further Reading 193

Endnotes  194


Chapter 9 Protecting Innovation  197

The Digital Music Distribution  Revolution 197

Overview  201Appropriability  202

Patents, Trademarks, and Copyrights  202

Patents  203

Trademarks and Service Marks 207

Copyright  208

Trade Secrets  210

The Effectiveness and Use of Protection Mechanisms  211

Wholly Proprietary Systems versus Wholly Open Systems  212

Advantages of Protection 213

Advantages of Diffusion 215

Summary of Chapter 218

Discussion Questions 219

Suggested Further Reading 219

Endnotes  220



Chapter 10 Organizingfor Innovation  225

Organizing for Innovation at Google  225

Overview  227

Size and Structural Dimensions of the Firm  228

Size: Is Bigger Better? 228

Structural Dimensions of the Firm  230

Centralization  230Formalization and Standardization  231

Mechanistic versus Organic Structures  232

Size versus Structure 234

The Ambidextrous Organization: The Best of Both Worlds?  234

Modularity and “Loosely Coupled” Organizations  236

Modular Products  236

Loosely Coupled Organizational  Structures 237

Managing Innovation Across Borders  240

Summary of Chapter 243

Discussion Questions 244

Suggested Further Reading 244

Endnotes  245


Chapter 11 Managingthe New Product Development Process  249

Scrums, Sprints, and Burnouts: Agile Development at Cisco Systems  249

Overview  252

Objectives of the New Product Development Process  252

Maximizing Fit with Customer Requirements  252

Minimizing Development Cycle Time  253

Controlling Development Costs  254

Sequential versus Partly Parallel  Development Processes  254

Project Champions  257

Risks of Championing 257

Involving Customersand Suppliers in the Development Process 259

InvolvingCustomers  259 

InvolvingSuppliers  260

Crowdsourcing  260

Tools for Improving the New Product Development Process  262

Stage-GateProcesses  262

Quality FunctionDeployment (QFD)—The House of Quality 265

Design forManufacturing  267

Failure Modes andEffects Analysis  267

Computer-AidedDesign/Computer-Aided Engineering/Computer-Aided Manufacturing 268

Tools for MeasuringNew Product Development Performance  269

New ProductDevelopment Process Metrics  271

Overall InnovationPerformance  271

Summary ofChapter  271

DiscussionQuestions  272

Suggested FurtherReading  272

Endnotes  273


Chapter 12 ManagingNew Product Development Teams  277

Innovation Teams at the Walt Disney Company  277

Overview  279

Constructing New Product Development Teams  280

Team Size  280 TeamComposition  280

The Structure of New Product Development Teams  285

Functional Teams  285Lightweight Teams  286

Heavyweight Teams  286

Autonomous Teams  286

The Management of New Product  Development Teams  288

Team Leadership  288

Team Administration 288

Managing Virtual Teams 289

Summary of Chapter 292

Discussion Questions 292

Suggested Further Reading 293

Endnotes  293


Chapter 13 Crafting a Deployment Strategy  297

Deployment Tactics inthe Global Video Game Industry  297

Overview  306

Launch Timing  306

Strategic LaunchTiming  306

Optimizing Cash Flowversus Embracing Cannibalization  307

Licensing and Compatibility 308

Pricing  310

Distribution  312

Selling Direct versus Using Intermediaries  312

Strategies forAccelerating Distribution  314

Marketing  316

Major Marketing Methods 316

Tailoring the Marketing Plan to Intended Adopters  318

Using Marketing toShape Perceptions and Expectations  320

Summary of Chapter 323

Discussion Questions 324

Suggested Further Reading 324

Endnotes  325


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About the Author

Melissa Schilling

Melissa A. Schilling is the Herzog Family Professor of Management at New York University Stern School of Business. She received her Bachelor of Science in business administration from the University of Colorado at Boulder, and a Doctor of Philosophy in strategic management from the University of Washington. Professor Schilling’s research focuses on innovation and strategy in high technology industries such as smartphones, video games, pharmaceuticals, biotechnology, electric vehicles, and renewable energies. She is particularly interested in platform dynamics, networks, creativity, and breakthrough innovation. This textbook, Strategic Management of Technological Innovation, is the number one innovation strategy text in the world. She also recently published Quirky:The Remarkable Story of the Traits, Foibles, and Genius Breakthrough Innovators Who Changed the World. 

Her research in innovation and strategy has earned her awards such as the National Science Foundation's CAREER Award, and the Best Paper in Management Science and Organization Science for 2007 Award. Her research has also appeared in leading academic journals such as Academy of Management Journal, Academy of Management Review, Management Science, Organization Science, Strategic Management Journal, Journal of Economics and Management Strategy, Journal of Alzheimer’s Disease, and Research Policy. She also sits on the editorial review boards of Organization Science, Strategic Organization, Strategy Science, and Academy of Management Discoveries. Professor Schilling teaches courses in technology and innovation management, strategic management, corporate strategy, and strategy for social-mission-based organizations


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