Warwick Business School

Global Energy MBAInnovation & Alternative Energy Technologies

Stephen Roper

Warwick Business School

Agenda for today

Introductions

Aims and objectives of the module (briefly!)

What is innovation? – chance to pick up queries from Lesson 1 (and Lesson 2?)

Opportunity for discussion of Baumol reading from Lesson 1 (Set Reading 1.1)

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Let me introduce myself… or at least my research

Existing/recent projects Innovation vouchers evaluation Innovation by GPs Innovation systems Innovation in services – linkages and business value Green innovation in smaller firms Offshore wind energy innovation system in Scotland

New projects (for this year) Dynamics of open innovation (ESRC) Externalities of openness (ESRC) Science parks and role in promoting firm growth (ESRC) Relating R&D, patents and innovation

Discussion point:

Anything you want to know more about?

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Module aims and objectives

Aim: To provide you with an introduction to theory and leading practice relating to

innovation and creativity in a range of operating environments but with a specific focus on alternative energy technologies.

Objectives: To introduce students to the main conceptual frameworks which have shaped

research and practice on innovation and creativity.

To give students an appreciation of the role of innovation and creativity in organisational and national performance.

To help students understand the role of regulation, policy, market structure and strategy on innovation outcomes

To provide insight into the practical steps which can be taken to enable creativity, design integration, inter-organisational knowledge sharing and strategy as part of firms’ innovation activity.

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Module divided into three main sections …

Objectives 1 and 2: Concepts, frameworks, performance Lesson 1: Introducing Innovation Lesson 2: Innovation Systems Lesson 3: Towards open innovation

Objective 3: Innovation in context Lesson 4: The political economy of innovation: the case of bio-ethanol Lesson 5: Adopting new innovations: the case of photovoltaics Lesson 6: Policy and regulation for renewable innovation: Wind energy Lesson 7: Disruptive innovation – the potential of FCVs

Objective 4: Delivering on innovation Lesson 8: Innovation and strategy Lesson 9: Innovation by design Lesson 10: Delivering on innovation

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… leading to the assessment

3,500 words individual assignment as follows:

Choose an organisation or firm to which you have access, or which you know well, and develop an outline strategy and action plan for promoting effective innovation.

Some typical sub-questions How would you characterise the current state of innovation and creativity

in the organisation? How is this influencing business performance? What is the objective of your innovation strategy proposals? What do you see as the key implementation issues in delivering on your

innovation strategy? How might you overcome these? Where are you going to start? What do you see as the priority agenda

items? Why?

Discussion point:

Queries or questions about module structure?

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Reading … No set text as module draws heavily on research literature from journals

such as Energy Policy, Research policy etc. Do follow up the set readings (please!) as they will greatly add to your enjoyment of the module!

Useful books are:

Davila, T Epstein, M J and Shelton, R (2005) ‘Making Innovation Work- How to manage it, measure it and profit from it’, Wharton School Publishing.

My favourite. A relatively easy read and covers all of the main strategic points covered in the module.

Anthony, S D et al. (2008) ‘The Innovators guide to growth – Putting Disruptive Innovation to work’, Harvard Business Press.

Harvard’s answer to the Davila book from Wharton! Also a good read and useful for the more strategic elements of the module (Lessons 8-10).

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More reading …. Tidd, J Bessant, J and Pavitt, K ‘Managing Innovation: Integrating

Technological, Market and Organizational Change’, Chichester: Wiley

Numerous editions of this are available and there are other books by the same authors – Tidd in particular which are worth looking at. Focus is on managing technological change and generally make rather dull reading (in my view!)

Chesbrough, H (2003) ‘Open Innovation’, Harvard Business School Press, Harvard

The classic on open innovation and still worth a read. Second hand copies generally available on Amazon for relatively little money!

Drucker, P (1985) ‘Innovation and Entrepreneurship’, Butterworth and Heinemann, Oxford.

Another classic for those of you interested in the small business or start-up angle of innovation

Discussion point:

Any uncertainty over readings etc?

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Lesson 1 – a quick one slide reminder

William Baumol, writing in 2002, comments that: ‘… firms cannot afford to leave innovation to chance. Rather,

managements are forced by market pressures to support innovation activity systematically… The result is a ferocious arms race among firms in the most rapidly evolving sectors of the economy, with innovation as the prime weapon.’ (Baumol 2002, p. ix)

Chapter themes are: Innovation = creativity plus commercialisation The variety of innovation Innovation and business performance Reading study 1: Innovation and growth Reading study 2: The ethics of innovation

Discussion point:

Any general comments or questions about Lesson 1 material? The nature of innovation?

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Questions for discussion (set reading 1.1)

Baumol, W.J. (2002) ‘On the Engine of Free Market Growth’ Chapter 1 in The Free Market Innovation Machine

What are the key forces which Baumol identifies as influencing innovation and its contribution to economic progress? Do you agree with his over-arching theory?

What role does R&D and new technology play in Baumol’s vision of innovation? How in his view does new knowledge become added value?

Does the history of ICT development in Ireland, Israel and Finland support Baumol’s story? Are the drivers of innovation in each country the same? What does this suggest about the validity of Baumol’s argument?

How does all this compare to the market in which your firm or organization operates? Are the drivers of innovation the same?