Impact of National System Innovation and Organisations Culture - Literature review Example

Impact of National System Innovation and Organisation’s Culture in the Commercialisation of Disruptive and Sustaining Technologies or Innovations Name of Student Student Number Institution Course Code Name of Instructor Date of Submission Introduction The onset of technological innovations has been considered with high regards and importance to social and economic development in this era of globalisation. The national system of innovation presented a new perspective on the dynamics of economy at national and global fronts (Lundvall 2010). Increased attention has been directed to academic, business and public policy circles based on given questions aimed at answering why, how and where technological innovations are generated, their successful inclusion, as well as development in economic growth. In context, the effectiveness of technology and innovation is felt by the masses through the products introduced into the market through organisations. According to Slater and Mohr (2006), organisational structure has a greater impact in the corporate world in respect to how effective commercialisation of the technological innovations are utilised. It is critical to note that within the corporate sector settings, organisational structure has greatly been impacted upon by technological innovations bringing up a new level of precepts (Ettlie 2006). Nevertheless, these two aspects independently or collaboratively have contributed to the enhancement of sustaining and disruptive technologies in the national and global arena. Therefore, this report evaluates the impact of national systems of innovation and organisation culture to the commercialisation of disruptive and retaining innovations and technologies. The innovative performance of any given nation is solely dependent upon the manner in which actors relate to other factors of collective system in knowledge creation and use, as well as the technologies utilised (Trott 2012). Consequently, successful commercialisation of technological innovations promotes growth while at the same time ensures business sustainability. Jones and Smith (2005), opines that technology use within a corporate setting is aimed at providing a basis for competitive advantage in the ever growing and competitive market. In regard to disruptive technologies, they are termed as crucial in helping organisations maintain a competitive advantage within a given market place. Further, they ensure uncertainty and risks are avoided or made away with to improve efficiency and effectiveness in the organisational system. They are specific types of technological change operating via given mechanism and leads to specific consequences (Trott 2012). It is termed by Daneels as a technology that changes the basis of competition through the change of performance metrics in the environment where companies compete (Daneels 2004, p. 249). Technological aspects and initiatives are changing tremendously, but not all the change that appears dramatic. In respect to this, Denning and Dunham (2010) state that the concept of national innovation system basically rests on the principle of understanding the links between actors that take part in innovation; who are majorly responsible to enhancing technology performance. It is critical to note that innovation and technical progress comes as a result of complex conglomeration of relationships among factors producing, distributing and applying diverse kinds of knowledge (Fenn and Raskino 2008). Sustaining technology refer to the successive versions of technology that upgrade the organisational systems with improvements to enhance markets performance where the best performing marketers incorporate within their prevailing systems (Slater and Mohr 2006). In organisations, increased product performance is achieved, as well as enhanced technological innovations backed by the major aim of raising the standards of existing products. Disruptive technology is risky due to its challenging nature to existing technologies and it is not possible to recognise it especially at its early development stages (Jones and Smith 2005). The national innovation systems approach is based on the aspect of technology flows and information among individuals, enterprises and institutions which are crucial to innovative processes (Daneels 2004). Understanding the national innovation system helps in the identification of leverage points crucial to enhance innovative performance, as well as overall competitiveness. This can be useful in the identification of mismatches within the system; both within institutions and in relation to government policies which have the capacity to impede progress in technology development and innovation (Fenn and Raskino 2008). Network enhancement policies among actors and institutions play a crucial role in respect to enhancing the innovative capacity of firms, specifically their ability to establish and embrace technological advancement which is highly crucial in enhancing organisational development. Innovation theories have expanded focus gradually, as well as complexity with the individual firm or entrepreneurs being at the beginning (Lundvall 2010). Further, it broadens to the environment and industry in which the firm operates, encompassing the national system of regulations and institutions’ human capital within the government strategies. Innovation per se is termed as a ubiquitous phenomenon within the modern technology (Trott 2012). With the growth and development in the national and global economies, there are the continuous processes of learning, searching and exploring resulting into new products, new techniques, new markets and new forms of organisations (Denning and Dunham 2010). This indicates the gradual process of change, as well as cumulative nature that characterises innovation as a process instead of a stage. Thus, innovation is continuous and will result into newness in the aspect of globalisation (Lundvall 2010). Generally, innovation is not just an act of learning by a given firm, but is strategically placed in a bigger system which enables and draws on the innovative process. Technologies are in most cases commercialised in niches, with some stagnating there as others penetrate the mainstream segments and compete with prevailing technology (Slater and Mohr 2006). Although disruptive process is not intrinsically linked to given technology or business idea, the business strategy establishes the extent of disruption impact. Sustaining technologies enhances product performance which is already valued by existing customer base (Fenn and Raskino 2008). In general, the potential effects of disruptive technologies are multifaceted in nature and enhance not just innovation, but improve on organisation development and economic progression in a nation. According to Denning and Dunham (2010), the increased use of internet in the era of globalisation, raises the fact that the perception in existence indicate it as the mother of all disruptions. This is due to the fact that it combines disruptive technologies of diverse market components. The initial aim of disruptive technology was to support managers of current organisations in their long-term strategic decision making processes (Jones and Smith 2005). These were effective in establishing management strategies which pursue innovation opportunities. Therefore, the aspect of organisational structure greatly influences the eventual utilisation of technology and innovations. Looking at the approach of national systems of innovations, it offers improvements for alternative frameworks utilised in the conceptualisation of technological developments in respect to inputs and output (Lundvall 2010). Inputs refer to the likes of scientific funding to enhance research and development (R&D), whereas output refers to the likes of patents and publications. These two aspects bring about static glimpses of national innovation and take the assumption of a linear model of technological development (Trott 2012). This is in respect to R&D which brings up enhanced technologies resulting to industrial growth and development. On critical evaluation of the national systems of innovation, it is worth noting that the approach enhances on dynamic network of policies, institutions and individuals who meditate knowledge flows across borders to influence companies of different national settings, as well as in domestic organisations (Fenn and Raskino 2008). The impact of national systems of innovation towards disruptive and sustaining technologies and innovations is enormous. The system’s approach brings about realistic perspective towards growth and development of processes due to its views of innovation efforts (Slater and Mohr 2006). This is in respect to the intimate connection existing between the systems and the broader macroeconomic and educational policies. This systemic approach is also best suited within organisational structure in respect to policy implementation with the basis of identifying leverage points or weak channels in the network (Denning and Dunham 2010). Thus, national systems of innovation brings up the concept that public and academic effort may bring about support but not give conclusive explanations on the technological efforts of organisations. Further, the growth and development of the intellectual property through education and training is crucial in fostering absorptive capacity and enhance organisational growth within specific economic settings and enhance on international competition (Lundvall 2010). In conclusion, it is worth noting that organisational development and economic progression are constantly being faced with issues and challenges pertaining to technology and accommodation of innovations. The aspect of developing disruptive and sustaining technology and innovations is core to this establishment. Thus, it is worth concluding that national systems of innovations and organisation culture have a greater impact towards commercialisation of sustaining and disruptive technologies and innovations. The former enhances on existing product innovation within an organisation with the latter facilitating for new ventures and opening up new markets. Therefore, effective systems of innovations at national levels and flexible organisational cultures eventually promote both forms of technologies and innovations contributing towards growth and development. It is also prudent to state that national systems of innovations enhance organisational structures promoting growth and developing within the country, the effect of the innovations spills over beyond the border. Thus, innovation and technology development go a long way in contributing towards globalisation. The aspects of national systems of innovation and organisational culture have a mutual effect to the aspects of disruptive and sustaining innovations and technologies. Reference List Daneels, E., 2004. Disruptive Technology Reconsidered: A Critique and Research Agenda. Journal of Product Innovation Management, Vol. 21, no. 4, pp. 246- 258. Denning, P. J. and Dunham, R., 2010. The Innovator’s Way: Essential Practices for Successful Innovation. Cambridge, Massachusetts: The MIT Press. Ettlie, J. E., 2006. Managing Innovation: New Technology, New Products, and New Services in a Global Economy. 2nd ed. Boston: Elsevier/Buttenworth- Heinemann. Fenn, J. and Raskino, M., 2008. Mastering the Hype Cycle: How to Choose the Right Innovation at the Right Time. Boston, Massachusetts: Harvard Business Press. Jones, S. and Smith, R., 2005. Disruptive Technology: Recognising and Coping with the Inevitable. Metalworking Production Annual Review, Vol. 149, no5, pp. 19-20. Lundvall, B. (Ed.), 2010. National Systems of Innovation: Toward a Theory of Innovation and Interactive Learning. London: Anthem Press. Slater, S. and Mohr, J., 2006. Successful Development and Commercialisation of Technological Innovation: Insights Based on Strategy Type. J Prod Innov. Manag. Vol. 23, pp. 26-33. Trott, P., 2012. Innovation Management and New Product Development. 5th ed. Harlow: Financial Times Prentice Hall. Read More