5.6 Innovation “A lot of people give up when the world seems to be against them, but that’s the point when you should push a little harder. I use the analogy of running a race. It seems as though you can’t carry on, but if you just get through the pain barrier, you’ll see the end and be okay. Often, just around the corner is where the solution will happen.“ James Dyson

Innovation Explain the importance of R&D for a business. Explain the role and importance of intellectual property rights for a business. Analyse the factors affecting motivation.

Dragons Den Invent a product for one of the issues below – Sweaty feet (seriously drippy!) – Oversized hands (clown sized) – Wonky walkers – Sausage fingers – Keeping your lunch warm

What examples can you find? Product innovation Paradigm innovation Position innovation Process innovation

Kodak Why do some companies, such as Apple and IBM, have such great success reinvigorating growth through market repositioning while others like Xerox, Polaroid, and Kodak struggle? YP50 YP50

Research and Development What is it? What are the advantages? Research and Development What is it? What are the advantages?

Benefits of R&D R&D can lead to the improved performance of an organisation It can lead to higher sales growth Value added is likely to improve There is the possibility of increased market value It can give a business a first mover advantage Greater employment opportunities Social benefits

The R&D Cycle Eureka moment Concept test Research the market Cost the idea Build prototype Test launchLaunchreview

Counterfeit Goods, what’s the problem? 0WN1QHIY 0WN1QHIY

Intellectual property rights Protection of the features and processes that make things work, allowing inventors profit from their inventions. These can take 2 – 3 years to be approved by government and last up to 20 years. Protection of signs (words, slogans and logos) that differentiate a good from those of competitors. These need to be applied for from national government but can cover more than one country. Protection of the overall visual appearance and ‘look’ of a product or part of a product in the county where it is registered. This can cover elements such as colour, shapes, materials or a combination of them. An automatic right of the ‘first owner’ which applied when an original work is written or recorded – it does not have to be applied for. This covers literary works, dramatic works and musical works. Trade marks, patents, copyright and registered designs.

What’s stopping them from innovating?

Factors affecting innovation Internal Corporate culture and leadership styles Future expectations and confidence Availability of finance and liquidity Staff skills and training Tradition and history of the firm External Level of competition & market pressures The nature of the market The role of government policy The state of the economy Willingness of investors Competition from globalisation Legal contraints

Homework Summary questions on chapter 5.6 in Hoang