Chapter 4: Creation of Knowledge and Value in Industry
4.1 EVOLUTION IN INDUSTRIAL RESEARCH: THE FIRST FOUR REGIMES Technology-based companies are engaged in research activities to make discoveries and subsequently develop them into inventions, and these inventions are then turned into innovations by bringing them to the market. This ﬁnal stage has to create value for the company and recover the cost of the research and development (R&D) stages. This sequence of the stages from discovery via invention to innovation is intrinsic. Traditionally this sequence was also the basis for the way in which companies organised their product development and innovation eﬀort. But over time this has changed and the sequential approach is no longer adequate and cost-eﬀective. In response to an increasingly more challenging and complex business environment the organisation of research and innovation in industry evolved over time to an increasingly more complex and eﬃcient system. Research developed from a relatively insular, technology-driven eﬀort in laboratories to an open, collaborative, value-creation activity as a business in its own right. To appreciate the logic and necessity of this development, we will start by describing the ﬁve evolutionary regimes in industrial research and illustrate the transition to the ﬁnal regime with a case study from industry.77 The First Regime: Trial and Error The ﬁrst regime concerns the experimental, largely pre-scientiﬁc search for the creation of new products and production processes by the great nineteenth-century inventors such as James Watt, Thomas Edison, Daniel Bell and so many others. Although these inventors worked with the...
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