Innovation and technology management

Are well-established firms or new entrants more likely to a) develop and/or b) adopt new technologies? What are some reasons for your choice?

An example to answer and illustrate the question can be Pda(personal digital assistant).Pda`s were developed in early 1970s and many companies invested a huge sum of money to manufacture it and sell it.what actually happened was that the technology was complicated and it was expensive than a desktop computer other than that users were not sure about there performance and campatibility hence the companies face a huge loss .some companies needed more money on research and development but they didnt have any and hence they had no choice but to exit the market. Firstly developing new technology is not easy ,the reason to support the statement is ‘Capital’.For new entrants to develop new technology require a huge sum of capital .business is all about taking risk .And for established companies although these risk do exist but at a low extent than new entrants.Even strong companies will fade if they do not produce a steady stream of innovations or if they fail to commercialise opportunities in timely fashion.other than that a firm needs to indentify its potential customers ,need to identify the market segments for the product invented . Adoption is difficult sometimes when the technology is complex for that reason firm has to train people within the organization as well as outside the organization.A proper guide book is normally given to consumers ,suppliers and other stake holders to understand the technology .

What are some of the advantages and disadvantages of a) individuals as innovators, b) firms as innovators, c) universities as innovators, d) government institutions as innovators, e) nonprofit organizations as innovators?

Advantages as individual :

An individual can sell its invention to any huge company and hence get a huge sum of money .An individual can be contacted by big companies ,potential investers to work with them and share his/her ideas with them and it could lead to a successfull career.

Disadvantages as individual:

An individual cannot or may not be able to market its innovation if they dont have enough capital.People are greedy now a days and hence there is a risk that innovation can exposed to another person hence all the hard work can be ruined in no time.

Advnatages as firms :

Firm can enjoy the first mover advantage and gain get enough revenue for that innovation if the product is successful before any other firm can copy it or make a substitute for it.Firms can enjoy huge economies of scale and can lead to brand loyaltyFirms can reap huge market share and can get competitive advantage over other firms working in the same industry.If the product is unique and hard to copy it can somtimes lead to a monopoly for the firm as some product can become a nessesity for comsumers.

Disadvantages as firm :

If a firm have spended a huge some of money for any particular innovation and it is not successfull in the market ,it can also lead to point where firm has to exit the market especially new entrants.Innovation can be harmfull for the society especially in medical sectors if it is not tested properly before launching.some innovations like cars now a days create lot of pollution becouse they run on fuel and it can harm the life.There is a risk that other firm may copy the product with less money invented and reap the advantage.

Advantages as universities:

Many universities encourage research and development and they usually win reasearch funding through publication of research results.it can also lead to rapid increase in establishment technology-transfer offices.It also increases the reputation of the university in the country and their grading.

Disadvantages as universities :

Universities cannot progress if they are not getting enough funding from the government agencies.Universites cannot properly market their research as compared to firms.

Advantage as government agencies:

Government can gain a huge sum of revenue with which it can spend it on infrastructure of the economy and hence it could lead to economic growth.government can give subsidies to firm and hence making the market more competitive.it can also create more jobs and hence reduce unemployment.

Disadvantage as government agencies:

They might not be able to find experienced personal working with them as many people prefer working for private institutions.May lose alot of capital if the research is not successfull.May increase the rate of taxation to regain the capital hence increasing the cost of living.

Advantages to non profit org:

They wont be worried about making a profit and hence successfull research can benefit the society.Can help them achieve more capital and do further research.

Disadvantages to non profit;

In the case with non profit firms ...they have everything to lose ,if the research is unsuccessfull they might have to fire people to atleast cover there cost and if goverment is not able to support them then they might have to shut down and this will result in unemployment