Implications for Strategy and Industrial Change
Edited by Ken Green, Marcela Miozzo and Paul Dewick
Chapter 11: Nonlinear Dynamism of Innovation and Knowledge Transfer
Masaaki Hirooka1 1. INTRODUCTION This chapter proposes a new concept for innovation and knowledge transfer. This approach oﬀers a powerful tool to analyse ongoing innovation and knowledge transfer in a rapidly changing global economy. In the economic study of innovation so far, the diﬀusion of innovation, market trends and the behaviour of ﬁrms have been intensively discussed. There is, however, a long latent period of technology development before the beginning of the diﬀusion of innovation. This technology development period has not been suﬃciently treated: it is a black box. This chapter throws light on this technology development period and thus it becomes possible to discuss an innovation paradigm as a comprehensive system consisting of two periods of technology development and product diﬀusion. One of the important ﬁndings of this study is the nonlinear nature of innovation and knowledge transfer. The market for innovation products reaches an ultimate maturity which never exceeds some limit. This relationship is well described by a logistic equation and we designate this locus described by a logistic equation as a ‘trajectory’. A new ﬁnding presented in this chapter is that technology development itself has a nonlinear nature and can be described by a logistic equation. This is the main subject of this chapter; and central to this is the knowledge transfer phenomenon in the course of innovation. This chapter is organized as follows. As a background, section 1 introduces the concept of innovation diﬀusion as a logistics curve and o...
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