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The free market innovation machine
Why has capitalism produced economic growth that so vastly dwarfs the growth record of other economic systems, past and present? Why have living standards in countries from America to Germany to Japan risen exponentially over the past century? William Baumol rejects the conventional view that capitalism benefits society through price competition--that is, products and services become less costly as firms vie for consumers. Where most others have seen this as the driving force behind growth, he sees something different--a compound of systematic innovation activity within the firm, an arms race in which no firm in an innovating industry dares to fall behind the others in new products and processes, and inter-firm collaboration in the creation and use of innovations.
While giving price competition due credit, Baumol stresses that large firms use innovation as a prime competitive weapon. However, as he explains it, firms do not wish to risk too much innovation, because it is costly, and can be made obsolete by rival innovation. So firms have split the difference through the sale of technology licenses and participation in technology-sharing compacts that pay huge dividends to the economy as a whole--and thereby made innovation a routine feature of economic life. This process, in Baumol's view, accounts for the unparalleled growth of modern capitalist economies. Drawing on extensive research and years of consulting work for many large global firms, Baumol shows in this original work that the capitalist growth process, at least in societies where the rule of law prevails, comes far closer to the requirements of economic efficiency than is typically understood.
Resounding with rare intellectual force, this book marks a milestone in the comprehension of the accomplishments of our free-market economic system--a new understanding that, suggests the author, promises to benefit many countries that lack the advantages of this immense innovation machine.
eBook
Innovating for sustainability: a framework for sustainable innovations and a model of sustainable innovations orientation
In an environment characterized by growing awareness of environmental sustainability among various stakeholders in organizations, innovating for sustainability can be expected to grow in importance from the standpoints of organizational legitimacy, reputation, and performance. Relatedly, a firm’s sustainable innovations capabilities as a source of competitive advantage and the sustainability related attributes of a firm’s product offerings as bases for market segmentation, target marketing, positioning, and differentiation can also be expected to grow in importance. The emergence of sustainability as a major driver of innovation highlights a number of important issues that merit investigation, such as potential avenues for sustainable innovation and sustainable product innovation and factors underlying differences between firms in their commitment to a sustainable innovations orientation. In an attempt to gain insights into these issues, this paper presents (1) a conceptual framework delineating potential avenues for sustainable innovations and (2) a conceptual model delineating a number of firm-related and industry-related antecedents of sustainable innovations orientation, along with performance outcomes of sustainable innovations orientation. Implications for theory, research, and practice are discussed.
Journal Article
A History of the Paper Pattern Industry
Sewing patterns have been the principle blueprint for making garments in the home for centuries. From their origins in the tailoring manuals of the 16th century to the widely produced pamphlets of the 18th and 19th centuries, through to the full size packet patterns of today, their history and development has reflected major changes in technology (such as the advent of the sewing machine), retailing and marketing practices (the fashion periodical), and shifts in social and cultural influences. This accessible book explores this history, outlining innovations in patternmaking by the companies who produced patterns and how these reflected the fashions and demands of the market. Showcasing beautiful illustrations from original pattern pamphlets, packets and ads, as well as 9 complete patterns from which readers can reproduce vintage garments of different eras, the book provides a unique visual guide to homemade fashions as well as essential exploration of the industry that produced them.
eBook
The Influence of Green Innovation Performance on Corporate Advantage in Taiwan
The purpose of this study was to explore whether the performance of the green innovation brought positive effect to the competitive advantage. This study found that the performances of the green product innovation and green process innovation were positively correlated to the corporate competitive advantage. Therefore, the result meant that the investment in the green product innovation and green process innovation was helpful to the businesses. This study argued that the businesses should cognize the correct value and positioning of the green innovation.
Journal Article
The Impact of Demand Uncertainty on Consumer Subsidies for Green Technology Adoption
This paper studies government subsidies for green technology adoption while considering the manufacturing industry’s response. Government subsidies offered directly to consumers impact the supplier’s production and pricing decisions. Our analysis expands the current understanding of the price-setting newsvendor model, incorporating the external influence from the government, who is now an additional player in the system. We quantify how demand uncertainty impacts the various players (government, industry, and consumers) when designing policies. We further show that, for convex demand functions, an increase in demand uncertainty leads to higher production quantities and lower prices, resulting in lower profits for the supplier. With this in mind, one could expect consumer surplus to increase with uncertainty. In fact, we show that this is not always the case and that the uncertainty impact on consumer surplus depends on the trade-off between lower prices and the possibility of underserving customers with high valuations. We also show that when policy makers such as governments ignore demand uncertainty when designing consumer subsidies, they can significantly miss the desired adoption target level. From a coordination perspective, we demonstrate that the decentralized decisions are also optimal for a central planner managing jointly the supplier and the government. As a result, subsidies provide a coordination mechanism.
This paper was accepted by Yossi Aviv, operations management
.
Journal Article
Artificial intelligence: a “promising technology”
This paper addresses the question of how the ups and downs in the development of artificial intelligence (AI) since its inception can be explained. It focuses on the development of artificial intelligence in Germany since the 1970s, and particularly on its current dynamics. An assumption is made that a mere reference to rapid advances in information technologies and the various methods and concepts of artificial intelligence in recent decades cannot adequately explain these dynamics, because from a social science perspective, this is an oversimplified, technology-centred explanation. Drawing on ideas from social scientific innovation research, the hypothesis is rather that artificial intelligence should be understood as a “promising technology”. Its various stages of development have always been driven by technological promises about its special powers and capabilities when applied to solving economic and societal challenges.
Journal Article
Making Sense
Breast cancer is one of the most commonly diagnosed cancers and a leading cause of death for women worldwide. With advances in molecular engineering in the 1980s, hopes began to rise that a non-toxic and non-invasive treatment for breast cancer could be developed. These hopes were stoked by the researchers, biotech companies, and analysts who worked to make sense of the uncertainties during product development. In Making Sense Sophie Mützel traces this emergence of \"innovative breast cancer therapeutics\" from the late 1980s up to 2010, through the lens of the narratives of the involved actors. Combining theories of economic and cultural sociology, Mützel shows how stories are integral for the emergence of new markets; stories of the future create a market of expectations prior to any existing products; stories also help to create categories on what such a new market and its products are about. Making Sense uses thousands of press statements, media reports, scientific reports, and financial and industry analyses, and combines qualitative and large-scale computational text analyses, to illustrate these mechanisms, presenting a fresh view of how life-prolonging innovations can be turned into market products.
eBook
Digital technologies for sustainable tourism destinations: State of the art and research agenda
This study explores the adoption of digital technology in sustainable tourism destinations and provides insights into current research. Using a bibliometric analysis approach, it comprehensively evaluates research outputs, identifies trends, and highlights key themes and collaborative networks. Employing a bibliometric analysis approach, this study utilizes the Scopus database and bibliometric software. After rigorous data cleaning, bibliographic coupling maps, collaboration networks, and keyword maps are generated using Biblioshiny and VOSviewer for comprehensive analysis. Analyzing 559 papers, the study reveals a consistent growth in publications, indicating increasing research interest in digital technology adoption in sustainable tourism destinations. Europe, Asia, and North America are the primary regions of research activity. Interdisciplinary collaboration is high, emphasizing the multidimensional nature of the field. While valuable, the bibliometric analysis is limited by data availability and quality in the Scopus database. Relevant research outputs may be excluded. The study focuses on overall trends and patterns rather than individual paper content. The study's findings have practical implications for researchers, policymakers, and practitioners in sustainable tourism. The identification of key themes and collaborative networks can guide future research and foster interdisciplinary collaborations. This study contributes to the existing literature on technological innovations in sustainable tourism destinations through its bibliometric analysis approach. Through providing an overview of the research landscape, identifying trends and collaborative networks, it offers valuable insights into the current state of research. The findings serve as a foundation for further exploration and advancement in sustainable tourism and digital technology.
Journal Article