José SimõesJosé Simões

Manuel BóiaManuel Bóia

Variations in the Functional Variations in the Functional Source of InnovationSource of Innovation

The Sources of InnovationThe Sources of InnovationVon Hippel, E.Von Hippel, E.

2001/02/092001/02/09

The Interactive and Non-linear Nature of InnovationThe Interactive and Non-linear Nature of Innovation

• Users sometimes Innovate, but do they always?Users sometimes Innovate, but do they always?

• What are the Sources for Innovation?What are the Sources for Innovation?

Users?Users?

Manufacturers?Manufacturers?

Suppliers?Suppliers?

Others? Others?

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

Pultrusion casePultrusion case

* not high-tech firms* not high-tech firms

* no formal R & D structures or connections* no formal R & D structures or connections

* no formal Technical Training* no formal Technical Training

Creative person triggered by out of the ordinary Creative person triggered by out of the ordinary

(large) production orders(large) production orders

Users as InnovatorsUsers as Innovators

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

90 % of all the significant pultrusion process machinery 90 % of all the significant pultrusion process machinery innovations were developed by machine usersinnovations were developed by machine users

Tractor Shovel caseTractor Shovel case

1 Manufacturers1 Manufacturers

- Increase the value- Increase the value

- Broad the scope of their product- Broad the scope of their product

2 Allied Manufacturers and Vendors2 Allied Manufacturers and Vendors

- encouragement by main manufacturers due to - encouragement by main manufacturers due to

the enhancements and value it provides to basic the enhancements and value it provides to basic

tractor shovel tractor shovel

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

Manufacturers as InnovatorsManufacturers as Innovators

Type 1: 94 % of the Innovations were developed by their Type 1: 94 % of the Innovations were developed by their ManufacturersManufacturers

Type 2: 40 % of the Accessories Innovations were Type 2: 40 % of the Accessories Innovations were developed by their Allied Manufacturers or Vendorsdeveloped by their Allied Manufacturers or Vendors

Manufacturers as InnovatorsManufacturers as Innovators

Engineering Thermoplastics caseEngineering Thermoplastics case

* counted for 2% by volume of all plastics* counted for 2% by volume of all plastics

* accounted for 6% of the total value of all plastics* accounted for 6% of the total value of all plastics

Increase the value of the final productIncrease the value of the final product

Broad the scope of their production plant capabilitiesBroad the scope of their production plant capabilities

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

90 % of Innovations were developed by Manufacturers90 % of Innovations were developed by Manufacturers

Manufacturers as InnovatorsManufacturers as Innovators

Plastics Additives casePlastics Additives case

Modify the properties of basic polymersModify the properties of basic polymers

Used in the four largest groups of plasticsUsed in the four largest groups of plastics

commercialized after the World War IIcommercialized after the World War II

Commercially SuccessfulCommercially Successful

Improvement: decreased toxicity, increased ease of useImprovement: decreased toxicity, increased ease of use

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

90% of plastic additives innovations developed by manufacturers90% of plastic additives innovations developed by manufacturers

Suppliers/Manufacturers as InnovatorsSuppliers/Manufacturers as Innovators

Wire Termination Equipment caseWire Termination Equipment case

Wire Termination MachinesWire Termination Machines

1 Cut the cable and strip the insulation1 Cut the cable and strip the insulation

2 Cut the cable and attach a connector in one or both ends2 Cut the cable and attach a connector in one or both ends

Different Type of Wire => different wire termination machines Different Type of Wire => different wire termination machines

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

Type 1: 56 % of Innovation made by manufacturers Type 1: 56 % of Innovation made by manufacturers 19% Users and 0 % Suppliers 19% Users and 0 % Suppliers

Type 2: 83% of Innovation made by connectors suppliersType 2: 83% of Innovation made by connectors suppliers

Suppliers as InnovatorsSuppliers as Innovators

Process Equipment caseProcess Equipment case

Process MachineryProcess Machinery

1 Use Industrial gases (Oxygen, Nitrogen)1 Use Industrial gases (Oxygen, Nitrogen)

2 Use Thermoplastic resins2 Use Thermoplastic resins

Development Innovation Process MachinesDevelopment Innovation Process Machines

=> capture rents from sales of materials used=> capture rents from sales of materials used

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

Type 1: 33 % of Innovation made by Suppliers Type 1: 33 % of Innovation made by Suppliers

Type 2: 36% of Innovation made by SuppliersType 2: 36% of Innovation made by Suppliers

Question:Question:

Will variations in time of the functional Source of Innovation Will variations in time of the functional Source of Innovation

exist within each case study?exist within each case study?

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

Users SuppliersManufacturers

Innovation

How the different sources could increase Innovation?How the different sources could increase Innovation?

• Use of Associations of all sourcesUse of Associations of all sources

• Information NetworksInformation Networks

• Users groupsUsers groups

• Market SurveysMarket Surveys

•Use of qualified Scientific and Engineering human Use of qualified Scientific and Engineering human

resources with user experienceresources with user experience

•...................?...................?

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

The EndThe End

Variations in the Functional Source of InnovationVariations in the Functional Source of Innovation

Pultrusion ProcessPultrusion Process

Tractor ShovelTractor Shovel