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1 Effective Alignment of Innovation European Manufacturing Survey 2006/7 dr. Paul E.M. Ligthart prof. dr. Ben Dankbaar & dr. Peter Vaessen correspondence.

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Presentation on theme: "1 Effective Alignment of Innovation European Manufacturing Survey 2006/7 dr. Paul E.M. Ligthart prof. dr. Ben Dankbaar & dr. Peter Vaessen correspondence."— Presentation transcript:

1 1 Effective Alignment of Innovation European Manufacturing Survey 2006/7 dr. Paul E.M. Ligthart prof. dr. Ben Dankbaar & dr. Peter Vaessen correspondence : P.Ligthart@fm.ru.nl Center for Innovation Studies

2 2 http://www.european-manufacturing-survey.eu Germany: Fraunhofer Institute System and Innovation Research Austria: Division Technology Policy; ARC Systems Research France: BETA, Université Louis Pasteur Strasbourg Switzerland: Institut für Betriebs- und Regionalökonomie, Hochschule für Wirtschaft in Luzern Sabanci University Istanbul, Turkey; Croatia: Economic Faculty, University of Zagreb Netherlands: Nijmegen School of Management, Radboud University Nijmegen Slovenia: Faculty of Mechanical Engineering, University of Maribor; Spain: Department of Business Administration and Product Design, University of Girona Turkey: Competitiveness Center, Sabanci University Istanbul And sponsor of NL-EMS, Rabobank In collaboration with our EMS-partners

3 3 Research Objectives Effective Alignment of Innovation –To gain insight in the interplay of different types of innovation and how this affects business performance –best practices that combine technological and organizational innovations (optimal configuration) leading to better (business) performances ; –Determinants of these optimal configuration (s) The need to overcome the split between innovation as driven by supply factors versus innovation as driven by demand factors (Freeman 1997).

4 4 Main Dimensions of Innovation Technological innovation – Administrative innovation –Daft, 1978; Damanpour, 1991; Cooper, 1998 Process innovation – Product innovation –Damanpour, 1991; Cooper, 1998; Tidd et. al., 2005 Incremental innovation – Radical innovation (i.e. new for the business, new for business and market) –Daft, 1978 Main focus has been on determinants of (the types of) innovation (Totterdell, 2002), e.g. -large, complex, participative firms, more product innovation (Scuilli 1998) -research oriented small firms, more product innovations (Rothwells 1983) -small (banking) firms adopt more process innovation (Scuilli 1998) -organisation size, more innovation activity (Anderson & King 1993)

5 5 Three dimensional model of Innovation (Cooper, 1998)

6 6 Two dimensional model of Innovation ProductProduct / Service combinations Product innovation ProcessInnovative organisation Process technology Non- Technological Classification of different paths of innovation (Kinkel, Lay & Wengel, 2005)

7 7 Shift from Supply to Demand of Innovation Different types of innovation, or innovations possessing different characteristics, will have a differential impact on the various consequences of innovation (Totterdell et al. 2002, p. 345). –Different types of innovations affected stakeholders differently (Totterdell et al. 2002), e.g. administrative innovation => employee relations Product/service combinations => customers

8 8 Research hypotheses Differential effect of types of innovation on performances (Differential hypothesis) –Different types of innovation affect different indicators of business performance Alignment of types of innovation increases performance (Alignment hypothesis) –Coherence between types of innovation increase business performance

9 9 Methodology European Manufacturing Survey 2006-7 –Topics: utilisation of specific innovations in production process, new organisation concepts, product/services combinations, performance indicators, outsourcing, collaboration, staffing. –3344 production plants of Manufacturers (Industry: NACE 15-37) (focal respondent: managing director / plant manager) –Multinational survey in 9 countries: (Germany, Switzerland, Austria, Spain, France, Croatia, Turkey, Slovenia, Netherlands) –Different branches of the Manufacturing Industry: (Metal, Food, Textile, Construction, Chemical, Machinery, Electronic, Transport) –Participation incentive: on-line benchmarking Website: http://www.european-manufacturing-survey.euhttp://www.european-manufacturing-survey.eu

10 10 Operationalisation & Scaling: Technological Process Innovation Reliability: Cronbachs alpha: 0.76; 13 items, N=3150

11 11 Operationalisation & Scaling: Organisational Process Innovation Reliability: Cronbachs alpha: 0.73; 13 items, N=2708

12 12 Operationalisation & Scaling: Product\Services combination Reliability: Cronbachs alpha: 0.78; 8 items, N=3268

13 13 Operationalisation: Product Innovation \ RDinvest Product- innovation N=3344 RDinvest N=2354

14 14 Descriptives: RDinvest, Types of Innovation

15 15 Descriptives: Performance Indicators

16 16 Omnibus Effects on Performance Indicators (delta_RSQ)

17 17 Differential and Alignment Effects of Types of Innovation controlled for lnSize, Country, Industry, and RDinvest

18 18 Findings: Differential Hypothesis Types of Innovation have differential effects on the performance indicators –Product innovation: (-) DeliveryTime, PEgrowth (+) OnTime –Technological Process innovation (-) DeliveryTime, SetupTime –Organisational Process innovation (+) DeliveryTime, OnTime, ProdLeadTime –Product/Services combinations (-) DeliveryTime, ScrapRate, ProdLeadTime

19 19 Findings: Alignment Hypothesis Coherence between Types of innovations increases performances –Innovation Technological and Organisation combined (+) DeliveryTime, OnTime, ScrapRate, ProdLeadTime –Innovation Technological and Product combined (+) PEgrowth –Innovation Organisation and Product/Services combined (+) Scraprate

20 20 Conclusions I Innovation is more than investments in R&D, i.e. –Technological Process Innovation –Organisational Process Innovation –Product Innovation –Innovative Product/Service combination Alignment of Innovation (policies) suggests best practices, i.e. –Organisational Process Innovation (only positive effects) –Combining Technological Process Innovation and Organisational Process Innovation (only positive effects) – …

21 21 Conclusions II Limitations –Cross-sectional survey: no causal inferences –Effects are relatively small, additional insights necessary Further research: –Search for of specific combinations of concrete innovations belonging to these Best Practices –Impact of Radical versus Incremental Innovation

22 22 Effective Alignment of Innovation European Manufacturing Survey 2006/7 dr. Paul E.M. Ligthart prof. dr. Ben Dankbaar & dr. Peter Vaessen Center for Innovation Studies


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