Innovation Life Cycle Research Articles

Extension of the Innovation Life Cycle Based on the Industry Market Regulator of Innovative Market Products

The article proposes to consider the innovation life cycle by the innovation marketing method from the perspective of a systematic approach as part of a complex system of the innovation process. The authors have offered a digital service named ‘Market regulator of innovative products’ which has industry market monitoring and commercial intermediary functions, unifying innovators and investors on the same platform with the assistance of market experts in the areas such as marketing, information technology, scientific analysis, and investment. In case of sales decline, industry-specific customer, a commercial customer, or a small business market product can receive a service aimed at extending the innovation life cycle of its high-tech product. This additional stage of the life cycle of an innovative high-tech product the authors call the innovations diffusion stage where a high degree of uncertainty is compensated by the market mechanism of the competition of ideas and investments.

Modelling techno-sectoral innovation system

Purpose This study aims to scrutiny the performance of the petrochemical sector and the technological innovation life cycle. Also, the stage of the innovation life cycle for the sector is specified. Then, scenarios are designed to improve the speed of the sector development. For this reason, for synchronizing the petrochemical sector, this study tries to combine two innovation systems (technological and sectoral systems) called “techno-sectoral innovation system” under an integrated model. Furthermore, the “functions and driving motors” are expanded in the proposed model. Design/methodology/approach By combining two concepts of the innovation systems, the complexity of the system rises to some extent. Also, to model causal relationships in the sector and non-linear connections between variables, system dynamics approach is applied. During this phase, the flow diagram of the model is translated to a simulation programme using Vensim software. Model validation is investigated using a comparison of the actual with simulated values. Findings The results predict the functions state of the innovation system and detect activation of innovation motors in each stage of the innovation life cycle. Validation shows the acceptable error of the indices. It can be concluded that the sector is relatively in the development state. Four scenarios have been proposed for representing policies that sector uses to motivate its companies. The best scenario is the fourth one that divides resources with different weightings among companies to accelerate switching time between sector’s motors. Finally, the fourth scenario can improve the performance of the petrochemical. Originality/value The hybrid approach shows researchers that performance of an industry can be improved based on sectoral and technological at the same time. Thus, this case-based model can contribute to other researchers, as a base model. Also, it could be customized with parameters and the relationship between players and functions. Furthermore, a dynamic switch among the motors has been presented in the model.

Role of Knowledge in Management of Innovation

Knowledge has always been, and still is, a crucial source of economy. However, during the past few years we have seen a growing interest in treating knowledge as a significant organizational resource for innovation. This trend coincides with the rapid development of ICT, indicating the strong influence that ICTs have on the processes of creating, disseminating, and using knowledge. At present, issues of innovation management and knowledge management are studied independently, which creates a certain gap in the systemic understanding of the innovation development processes. The paper proposes an integrated approach to the issues mentioned. The hierarchy and taxonomy of knowledge are considered from the point of view of their influence on decision-making at different stages of the innovation lifecycle. Our proposition complements and contributes to several recent models of decision-making developed in the frame of the innovation process.

A conceptual framework of the adoption of innovations in organizations: a meta-analytical review of the literature

Studies on the adoption of innovations in organizations are abundant and have introduced many different factors that are likely to influence adoption decisions yet, somehow, without an integrated view among them and with somehow contradictory empirical results. This study introduces a conceptual framework in which the attributes of innovation–adoption decision linkages in organizations are mediated by both the behavioral preferences of managers and organizations’ resources and moderated by the innovation life cycle. It further meta-analytically tests the framework’s predictions on 185 primary empirical studies. The findings are expected to contribute to the literature on the adoption of innovations by deepening the theoretical conditions and empirical factors that are likely to influence adoption decisions in organizations. The study also has implications for practice, since it sheds light on the factors that practitioners can leverage to manage the diffusion of innovations.

Integrating innovation life cycle concept and innovation mapping technique to model industries' innovations

To assess the future development of a technology and make decisions whether to invest in it or not, entrepreneurs need to know the current stage of technology innovation's life cycle. S-curve is the dominant approach to analyse innovation life cycle. However, using this alone oversimplifies the situation. The objective of this research is to develop and implement innovation model that is capable of identifying the life cycles, their radical and incremental innovations, their types and dates for any industry. An integrated model that combines innovation mapping and life cycle was developed. A database was designed and a computerised vertical and horizontal innovation models were developed and linked to the database. The music industry was then used to implement and validate the model. The results showed that model were effective in tracing and presenting the innovation changes over the years to understand the details of the innovations of this industry).

ОБОСНОВАНИЕ ПРИНЯТИЯ КОММЕРЧЕСКИХ РЕШЕНИЙ ПРИ ОТБОРЕ ИННОВАЦИЙ (НА ПРИМЕРЕ ОТРАСЛИ ЭЛЕКТРОЭНЕРГЕТИКИ)

The article is devoted to theoretical, methodological and practical issues of substantiation of innovative solutions in the commercialization of innovations in the electric power industry. The market of innovations for the electric power industry in the Russian Federation requires an increase in the number of solutions in the market, despite the fact that it has only recently begun to form. Taking into account that the life cycle of innovations in the electric power industry is longer than in other industries (one and a half years or more), there are high risks for an investor due to the fact that a substitute product for the innovative project invested into may appear in the market during this time. The main problem is concentrated in the array of selection of startups in the early stages and bringing them to the stage of "Finished Product". The topical task of the research is to develop a methodology for justifying commercial decision-making in the selection of innovations at early stages of the innovation life cycle. The methodical approach to justification of innovative projects in the electric power industry is substantiated and developed. This methodological approach is based on building of a structural and functional model of project evaluation, which includes a comprehensive criteria assessment of quality (parameters of the business model of the project, indicators of the quality management system) and quantitative (investment, income and expenditure, as well as the resulting economic parameters) indicators of the project. The content of the concept "stages of the life cycle of an innovative product" as an important component of the process of evaluating the efficiency of innovative projects is described. An algorithm for the selection of innovative projects in the electric power industry is formed, aimed at improving the quality of project selection and reducing the selection time, which, in turn, should ensure an increase in the interest of private investors in the financing of innovative developments in the electric power industry. An integral indicator of the investment attractiveness of the project is formed, which allows selecting and ranking innovative solutions in terms of their investment attractiveness. The proposed method of justification of innovative solutions allows to flexibly adapt to the requirements of an investor in the context of changing priorities in an unstable economic situation, changing market requirements, and changing trends in the market in the electric power industry.

Integrating innovation life cycle concept and innovation mapping technique to model industries' innovations

To assess the future development of a technology and make decisions whether to invest in it or not, entrepreneurs need to know the current stage of technology innovation's life cycle. S-curve is the dominant approach to analyse innovation life cycle. However, using this alone oversimplifies the situation. The objective of this research is to develop and implement innovation model that is capable of identifying the life cycles, their radical and incremental innovations, their types and dates for any industry. An integrated model that combines innovation mapping and life cycle was developed. A database was designed and a computerised vertical and horizontal innovation models were developed and linked to the database. The music industry was then used to implement and validate the model. The results showed that model were effective in tracing and presenting the innovation changes over the years to understand the details of the innovations of this industry).

Nexus of Comprehensive Green Innovation, Environmental Management System-14001-2015 and Firm Performance

The massive influx of global warming, pollution, natural resource depletion, waste, wastewater, climate change, and loss of biodiversity are the primary sources of motivating firms to innovate within their businesses. This has caused great concern for academicians, policymakers and practitioners to find solutions in dealing with the environmental issues. To provide the answer to the exiting challenges this study propounds the conceptual framework that explores the intervention of the new amendment in environment management system (14001–2015) towards innovation, comprehensive green innovation, and firm performance. Therefore, the main objective of this study is to find out the role and effect of ISO14001-(2015) on general innovation and comprehensive green innovation. This study combined the institutional theory, (environmental management system) resource-based theory (general innovation, comprehensive green innovation) and stakeholder theory (firm performance) to maximise the resources utilisation though newly amended EMS14001-2015 to meet the stakeholders demands without compromising the ecological standards. The proposed conceptual framework will provide a holistic view of the firm in formulating strategies and implementing a comprehensive green innovation to the industry. Implementation of a comprehensive green innovation will enable businesses to reduce the cost of production and end life cycle impact of the product, process, service and organisational innovation on the environment. By considering the end life cycle of innovation, including minimisation of the resource consumption, waste, waste to water and emission which will create a sustainable competitive advantage for the firm. All in all, this study propounds the conceptual framework of a comparative study between nomal innovation, comprehensive green innovation and organisation performance with the moderation of environmental management system (14001–2015).

Mechanism of business entities innovative development management (organizational and economic approaches)

The development of the national economy and the increase of domestic enterprises competitiveness are associated with the transition to an innovative model of economic development. We proposed the structure of organizational and economic mechanism, which distinctive characteristic is the composition of the interaction process of subjects and objects of management. As subjects of management in mechanism we singled out three subsystems: functional, process and administrative which are the bases of innovative development. As a result of the research it is found that the process of innovative development management should be considered as a set of subprocesses series, reflecting the combination of the main stages of the innovation life cycle. We proposed scientific and methodical approach to evaluate the effectiveness of entities innovative development management, which allows us to assess their level of innovation and generate proposals for adjusting innovation strategy.

Viral Social Learning

An innovation (e.g., new product or idea) spreads like a virus, transmitted by those who have previously adopted it. We characterize equilibrium adoption dynamics and the resulting lifecycle of virally-spread innovations. Herding on adoption can occur but only early in the innovation lifecycle, and all virally-spread innovations eventually become obsolescent. A producer capable of advertising directly to consumers finds it optimal to wait and allow awareness to grow virally initially after launch. When most innovations would otherwise be high (low) quality absent any viral social learning, running an optimal-length viral campaign decreases (increases) equilibrium investment in innovation quality.

THEORETICAL BASES OF MANAGEMENT OF INNOVATIVE ACTIVITY OF THE ENTERPRISE

In today’s world, innovation has become an integral part of all structures. The use of various scientific methods of studying the innovation process is an important factor for the economic development of the country. The article highlights the importance of innovation for the enterprise, presents various approaches to the study of scientists the concept of «innovation». Also, the classification of innovations on a number of different criteria and features is made and the main stages of the innovation life cycle are designated.

ESTIMATION OF QUALITY OF DRIFTING MODELS OF BASIC STRUCTURES OF INNOVATIVE TECHNOLOGIES

In the era of the transition processes associated with the change of technological structures, the growth of the intensity of information support for new products, and the growing threats of unauthorized copying of the results of intellectual activity, the problem of assessing the technical and consumer novelty of experimental products remains relevant. Solving the problems of assessing the significant changes (drift) of requirements to the consumer parameters of new products or the introduction of new functional capabilities into the technological processes of innovative enterprises creates a core competitive advantage - technical and consumer novelty. In order to complement existing methods and approaches to the problem posed, in this article we present models of functionally necessary and functionally sufficient structures that differ on the basis of the basic structures represented by the point of a multidimensional space of functionally significant parameters that take into account existing limitations imposed by the level of development of scientific and technological progress and the evolution of the social environment, allow to exert control effects on the drift functionally significant parameters at any stage of the life cycle of innovation, subject to the use of specialized Total Quality Management tools.

Optimum Technology Product Life Cycle Technology Innovation Investment-Using Compound Binomial Options

The study considers the product life cycle in the stages of technological innovation, and focuses on how to evaluate the optimal investment strategy and the project value. It applies different product stages (three stages including production innovation, manufacture innovation, and business innovation) factors to different risks to build a technology innovation strategy model. This study of option premiums aims for the best strategy timing for each innovation stage. It shows that the variation of business cycle will affect the purchasing power under the uncertainty of Gross Domestic Product (GDP). In application, the compound binomial options for the manufacture innovation will only be considered after the execution of the production innovation, whereas the operation innovation will only be considered after the execution of the manufacture innovation. Thus, this paper constructs the dynamic investment sequential decision model, assesses the feasibility of an investment strategy, and makes a decision on the appropriate project value and option premiums for each stage under the possible change of GDP. Numerically, the result shows the equity value of the investment is greater than 0. Therefore, this paper recommends the case firm to invest in its innovation project known as one-time passwords. Sensitivity analysis shows when the risk-adjusted discounted rate r increases, the risk of the investment market increases accordingly, hence the equity value must also be higher in order to attract the case firm’s investment interest. Also, the average GDP growth rate u sensitivity analysis results in different phenomena. The equity value gradually decreases when the average GDP growth rate rises. When the average GDP growth rate u rises to a certain extent, however, its equity value is gradually growing. The study investigates the product life cycle innovation investment topic by using the compound binomial options method and therefore provide a more flexible strategy decision compared with other trend forecast criteria.

Start-up as a tool for implementation of investment decisions

Introduction. Start-up is the first necessary stage of a life cycle of innovations. Discovering of foreign experience shows us a limited count of theoretical researches in case of the start-up business methodology. A high-speed system of a support of the start-ups is the fundament for an activation of innovations deals, the increase of the volume of innovations production, the export of high-tech product.
 Aim and tasks. The aim of the article is discovering of the matter and conditions of Ukrainian IT-business, finding the main sources of a financing of the start-ups in conditions of national economy instability and the detection of potential investment sources for some innovation projects on the data of the start-ups modern financing condition. This article uses dialectical method of research of economy actions and processes in their development and interconnection, systematically way for researching issues.
 Research results. The start-up business has differences from the ordinary business, because the investors invest money in it in the beginning of existence, not in time of successful working. One of the main spheres of the modern start-up business is IT-industry.
 The biggest spheres of modern investment: the outsourcing, the “Angels’ investments”, the crowdfunding. The Venture Capital and Direct Investment Association (UVCAeu) was founded in Ukraine and the task of this association is the assistance for global companies development in Ukraine and connecting Ukrainian and world’s start-up communities.
 Conclusions. Ukraine is becoming the IT-nation. The Technology talent is the unique feature of our country. The one we really need is the entrepreneurial grip in meaning of the right presentation of our product. Today we have to be confident in our start-ups prospective, and each year the world will talk more and more about the success of the Ukrainian projects and our country in general.

Anatomy of an innovation in IT service

The case study covers aspects of service innovation in the IT services sector. The client Nordics is a global telecommunication major. They have a large and diverse set of IT business applications, most of which is on SAP applications. The subject of the case study is that of SAP Releases, the service of enhancing and creating new business functionalities in the existing business applications. The case is seen from the perspective of the Program Manager of the SAP Release service. This service is delivered by the IT Services major AVON. The case study covers the full lifecycle of the innovation in service, from the identification of the need, conceptualization and creation of the service offering up till pilot execution. The important aspects of innovation in the revenue model and service delivery model are also covered. The case can be analyzed from two perspectives, as a detailed lifecycle of a major innovation in service or as a requirement of dynamic capabilities in the IT service provider organization, to bring about that innovation.

On the Influence of the Conceptual Apparatus on Setting the Tasks of Information Support of Innovation Activities

Various interpretations of the innovative economy, innovation activity, and innovation concepts are given. A consequence of the undefined terminology is the diversity of the semantic load of the term innovation infrastructure. The resulting variety of approaches to solving the problems of information support of innovations is illustrated based on the example of analysis of regulatory and program documents of eight regions of the Siberian Federal District. As an alternative to creating a difficult-to-implement single federal point of reference in the information space, it is proposed to build a network of regional systems that provide navigation and access to appropriate resources for the information provision of innovation activities. In connection with external information resources, a model of the life cycle of innovations is presented, covering all stages from the generation of ideas to the withdrawal of an innovative product from the market.

Modelling procedures for assessing the effectiveness of innovative projects under the conditions of risk and uncertainty

While considering the current state of innovative projects, it is expedient to take into account the risk factor which makes it possible to adapt to the market environment. Due to high risks ways should be sought to minimize them. The research paper presents such methods of minimizing risks, namely: risk-sharing between project participants; carrying out insurance of projects; reserving funds for contingent expenses. With regard to characteristics of particular industry, the scheme for classification of innovative risks is proposed. It is pointed out that the distinguishing feature of innovation risks is that they are determined for each stage of the product innovation life cycle from the perspective of scientific, technological and commercial success. And then, the integral or, in other words, overall risk is determined. It is noted that in order to adequately assess the effectiveness of the project, it is necessary to have sufficient information to form a reasonable hypotheses about the probable distribution of the key parameters of the project. In such cases, the missing data is replaced by the values obtained in the process of determining the integral risk. The identification of integral risks is especially effective in cases where the processes under consideration are too complex, have a random (stochastic) nature or cannot be studied under real conditions. The simplest integral models are often used to generate source data that has some permissible properties. It is argued that in order to obtain the most accurate results it is expedient to use the method of problem-thematic (innovative) forecasting, since it will make it possible to take full account of all interconnections between the initial indicators of the project. The proposed procedures for assessing the effectiveness and risk management can be used by industrial enterprises that carry out risk management in order to avoid a crisis in an uncertain market environment. It is proved that in order to perform the procedures for assessing the effectiveness of innovative projects, it is necessary to follow five stages: to establish the relationships between initial and base indicators in the form of a mathematical equation or inequality; to set laws of probability distribution for key parameters of the model; to carry out computer simulation of knowledge of the key parameters of the model; to calculate the basic characteristics of probability distribution of initial and output indicators; to analyze the results and make decisions.

Management of innovation processes at the enterprises of the construction materials industry

The purpose of this paper is the development of a methodical approach to management of the parameters of the life cycle of innovations. This approach ensures the increase of the efficiency of economic activity by intensifying the processes of innovative development of industrial enterprises. As a result of the research, the features of the processes for implementing the life cycle of innovations were determined; the system of criteria for assessing the efficiency of management of the parameters of the life cycle of innovations was developed; a management model for the parameters of the life cycle of innovations was formed; and a management mechanism for the life cycle of innovations in a saturated market was developed.

Accelerator of innovations for pre-incubation stage of project lifecycle

The article is aimed at developing cogent proposals to shorten the implementation of pre-incubation stage of the innovation lifecycle. To achieve the goal, we proposed a framework to formalized description of innovative systems that allowed us to identify structure and set of elements of the system that are invariant with respect to its levels. The analysis of the most popular innovation process models allowed us to single out the feedback as a key structural element of the system, which to a large extent determines the dynamics of the innovation process. It is shown that the absence of specialized infrastructural elements of innovation systems that could provide cross-cutting feedback at the pre-incubation stage is a deterrent to accelerate innovation.

Modeling the dynamics of technological innovation system in the oil and gas sector

PurposeThe purpose of this paper is to model the relationship between “innovation systems” players and markets to indicate the “innovation functions” behavior during the petrochemical technology life cycle.Design/methodology/approachIn a general classification, innovation systems are divided into four categories: technical, sectoral, regional and national. If two approaches are hybrid, their benefits would be combined. According to the sectoral structure of the governance model in Iran, in many sectors, such as petrochemical technology, the combination of one another with a sectoral approach is essential. Hence, this paper has introduced a new hybrid approach, called a techno-sectoral innovation system, and has used system dynamics as a methodology and a petrochemical industry as a case study.FindingsThe results predict the functions state of the innovation system and detect activation of innovation motors in each stage of innovation life cycle. Validation is investigated using Monte Carlo simulation that shows the error of the indices is acceptable. It can be concluded that the model is relatively in a development state and the motor of entrepreneurship functions.Originality/valueThis case-based model can help other researchers, as a generic model. It could be customized with the input parameters and relational flows of new cases, and functions (F1-F7) can show the result of each scenario made by the innovation analyst and the policymaker.