Technological innovation cap 1

Technological innovation cap 1

1. Introducing a new device, method, or material for application to commercial or practical objectives.

2. Introducing new products help firms protect their margins. Investing in process innovation helps firms lower their costs. Technological innovations make production more efficient and increases production capacity.

3. CAD and CAM have made it easier and faster for firms to design and produce new products. More flexible manufacturing technologies have decreased the importance of production economies of scale → differentiation

4. Innovation raises the bar for competitors and the market in general. Innovation has a mostly positive impact on society

5. Technological innovation has sometimes negative to very negative effects on the environment such as pollution, erosion, animal extinctions, antibiotic-resistant bacteria, and questionable genetic modification like in GMOs.

6. The majority of effort and money invested in technological innovation comes from industrial firms. Most innovative ideas are not successful. Improving a company’s innovation success rate requires a well-planned strategy.

   • Succesful projects
     • 1) In-depth analysis and understanding of dynamics of innovation 2) Well-made innovation strategy 3) Well-designed processes for implementing innovation strategy