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2 The Sources of Commercial Technological Innovation
Pages 18-27

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From page 18...
... As a general rule, it is very difficult to identify and prove the contribution of research, and particularly fundamental research, to commercial innovation. Common sense tells us that the role of research vis-a-vis commercial technological innovation varies greatly from one area of technology to another.
From page 19...
... Complex technologies tend to be launched either by what are called radical innovations that is, innovations that are first of a kind or by what we call trajectory transitions. A trajectory transition occurs when the basic design or the technological platform at the center of a continuing series of incremental innovations changes fundamentally.
From page 20...
... 1 970 Complex Process/Simple Product Complex Process/ ' Complex Product Simple Process/Simple Product FIGURE 2.2 Thirty most valuable goods exported. ~ 995 Simple Process/Simple Product Complex Process/ Simple Product \} _ \ Complex Process/ Complex Product
From page 21...
... that is the key to economic success. The next question is, How is the United States doing if we apply these categories?
From page 22...
... -$50 ·U.S. · Japan -$6 -$36 ~ | $12 Complex Process/Complex Product Complex Process/Simple Product -$18 Simple Process/Simple Product -$100 -$50 $0 $50 $100 $150 $200 In1995 $B the trade surplus or deficit of the United States using these three categories and we do the same thing for Japan, what we find is that in 1980 the United States had a $12 billion trade surplus in complex/complex technologies.
From page 23...
... for Spcl Indus2,688,1049,550,854 713 Internal Combus Piston Engine-2,603,54713,119,205 874 Measuring Control. Equip6,139,5744,237,599 782 Lorries-4,874,4989,615,997 793 Ships & Boats, etc.1,243,56910,932,151 744 Mechanical Handling Equip424,5844,850,386 Subtotal-50,195,597169,627,782 SOURCE: United Nations, International Trade Statistics Yearbook, Vol.
From page 24...
... You made the point that research is very important at the initiation of a new curve. I wonder if you could consider scientific and engineering research separately, where engineering research determines whether the curve has an S shape or is a constant.
From page 25...
... That's why in the chemical industry, our products have very long life cycles. If you look at the 50 top industrial chemicals of 1996, you will find a very great similarity to those of 1966, 1976, or some other time period.
From page 26...
... Of course, for most of the complex technologies that I discussed, market research is very important it's a major input to the innovation process. But I am sure that it doesn't show up in DuPont's research budget.
From page 27...
... The National Science Foundation, which has some interest in defending fundamental research, got the Illinois Institute of Technology to do TRACES. TRACES found that there was a relationship.


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