Q 46-50

Radical Innovations:

• Create fundamental changes in products/processes

• Often require new knowledge and capabilities

• Higher risk but potentially higher rewards

• May create new markets or industries

• Can make existing solutions obsolete Examples:

• First smartphone (iPhone)

• Electric vehicles replacing combustion engines

• Digital photography replacing film

Incremental Innovations:

• Improve existing products/processes

• Build on existing knowledge

• Lower risk and more predictable outcomes

• Focus on optimization and efficiency Examples:

• New smartphone model with better camera

• More fuel-efficient combustion engine

• Higher resolution digital cameras

Key commercialization strategies include:

1. Direct Market Entry

• Creating a new company

• Developing and marketing products internally

• Building own distribution channels

1. Licensing

• Licensing technology to established companies

• Earning royalties from others' commercialization

• Maintaining IP ownership while sharing rights

1. Strategic Partnerships

• Joint ventures with established companies

• Collaboration agreements

• Technology transfer partnerships

1. Acquisition

• Selling the innovation to larger companies

• Technology acquisition deals

• Corporate buyouts

Key financing sources include:

1. Personal/Internal Funding

• Founder savings

• Friends and family

• Bootstrapping

1. External Private Funding

• Angel investors

• Venture capital

• Seed funding

• Crowdfunding

1. Public/Institutional Support

• Government grants

• Research funding

• Innovation subsidies

• University support programs

1. Debt Financing

• Bank loans

• Convertible notes

• Equipment financing

The innovation process typically includes:

1. Idea Generation

• Problem identification

• Market research

• Creative ideation

• Opportunity recognition

1. Concept Development

• Feasibility studies

• Initial prototyping

• Technical validation

• Market validation

1. Development

• Detailed design

• Product development

• Testing and refinement

• Patent protection

1. Implementation

• Production planning

• Market launch

• Commercial scaling

• Customer feedback

The National Innovation System concept encompasses:

1. Key Components

• Research institutions

• Universities

• Private companies

• Government agencies

• Financial institutions

1. Interactions

• Knowledge flows

• Technology transfer

• Collaboration networks

• Resource sharing

1. Policy Framework

• Innovation policies

• Research funding

• IP protection

• Education system

• Industrial policy

1. Support Infrastructure

• Technology parks

• Incubators

• Research facilities

• Communication networks