Innovation Assignment: Analysing Scenarios Based On Markets, Firms & Policies

Question

Task:
Prepare an innovation assignment addressing the following questions:

Answer

Innovation assignment Question 1
The Nobel Prize winner Paul Krugman said that ‘Productivity isn’t everything, but in the long run it’s almost everything’. What is productivity and why do economists think it is so important?

Solution: In economics, physical productivity is defined as the quantity of productivity produced in one-time unit by an input unit of operation. The normal estimation of power outcomes makes per unit time, such as 5 tonnes per labour time. Increases in physical productivity lead to a sufficient increase in the value of labour which raises wages. It's for this purpose for staff find preparation and in-the-work training. Understanding and awareness boost the workers' human money and render them more working. It is two different things to feel productive and actually being productive. The use of an economic model will help decide how productive an individual is.

In economics, productivity is crucial because it has a major effect on living standards. The degree of productivity reflects the most basic and important ratio deciding the standard of living. This helps people to take what they need much quicker or take the amount of time longer to get what they want most. Supplies grow as productivity rises, thus decreasing real prices and raising real labour. There are rising wages for higher productivity. Technology is a vital part of rising productivity. Therefore, we also need a temporary lower taxable investment designed to improve performance and encourage increased energy use in future.

Question 2
Over time the complexity of products, such as automobiles, computers and aeroplanes, has increased as they have become more sophisticated (compare for example a Ford Model T with a Tesla). This increase in technical complexity has led to increases in the complexity of the knowledge required to produce these products (Henry Ford didn’t need to know about emissions standards for example). What has been the implications for how innovation and production is organised within and between firms?

Solution:It cannot be denied to any extent that the complexity of products has drastically increased and development of products at the current time requires more knowledge and skills. It could also be stated that the complexity would continue to increase with time. Due to the continuous development and discovery of new innovation, the production of the business organisation changes. The business organisation continuously focuses on incorporating the latest innovations present in the market in order to enhance production and competitive edge in the market. It has been known that innovation brings numerous opportunities and benefits to the organisation, however, there are certain challenges that an organisation experiences while incorporating new technology. Some of the challenges that an organisation experience while incorporating new technology are procurement cost, training of employees, acceptance from employees and many more. When a firm incorporates new technology, the production and efficiency of the firm is expected to increase, so the competitors of the firm in the market also incorporate the same or similar technology in order to compete. Basically, when a successful innovation is discovered, the entire market and the business organisation in it focuses on incorporating it so that the advantages such as enhancement in production efficiency, lowering of production cost, enhancement of product quality and many others could be accomplished.

Question 3
Why are large, complex socio-technical systems, such as carbon intensive energy or transportation systems difficult to change?

Solution: The large, complex socio-technical systems are difficult to change because these systems such as carbon intensive energy or transportation systems are developed in an individual setting that is formed for a new functional development. It should be mapped to evaluate the socio-technical system to identify the potential possibility space with all the viable alternatives if various functions and how to formulate them.

The difficulty to change can be established with different factors namely:

• There is extensive lock-which makes it difficult to change because of the outcomes that are not the at the best possible levels.
• There is a diverse multi-level perspective for these organizations due to the complexity in their socio-technical systems. It fosters the need for conceptualizing the process considering the purposive changes.
• These systems belong to niche segments that are mostly protected areas and the prospective cases for replacing existing systems that are not functional are unclear due to their complexity.
• There is impact of politics in the regulations and pricing towards organising the frameworks in the organizations with large, and complex socio-technical systems.
• The governance of these organizations have higher stress on the alignment of the socio-technical systems, the context of the change, as well as related stress.

Question 4
How do sectors (chemicals v pharmaceuticals v cars) differ in their patterns of innovation, in terms of the main place where innovation takes place within the firm, what the key inputs are, and how it is organised within and across firms?

Solution: Changing patterns of input - The difference in the patterns of innovation between these sectors occur with the changing patterns of innovation. Innovation increases the factor of uncertainty across various industries. The level of complexity, search for innovations in technology and addressing the market certainty, their linkages existing with other organization. These factors vary between chemicals v pharmaceuticals v cars sectors according to differing complexity in these sectors. The complexity is based on the changing innovation models that adapts to the differing requirements within chemicals sector, pharmaceuticals sector, and cars sector.

Key Inputs - The key inputs of pharmaceuticals and chemicals industry are science intensive. It draws upon the context of scientific interventions to find operational principles or to innovate in existing line of medicines or chemical formulations. The key inputs of the car industry is design intensive which is based on models and the sector is extensive in space. It relies on simplification of activities to produce complex products i.e. cars.

R&D - The research and development intensity is high for pharmaceutical and chemical industry, and R&D intensity in car sector is medium.

Fields of Knowledge - The fields of knowledge in car sector is S&T distinct as it involves machine building. The fields of knowledge in chemicals and pharmaceuticals sector flows from S to T.