Tech Mining Exploring New Technologies for Competitive Advantage

8/8/2019 Tech Mining Exploring New Technologies for Competitive Advantage

1/12

Tech Mining Exploring New Technologies for Competitive Advantage. Edited by Alan

L. Porter and Scott W. Cunningham

Chapter 1 - Technological innovation and the need for tech mining

Tech mining is our shorthand for exploiting information about emerging technologies

to inform technology management (see the Preface). This chapter anchors tech mining

to technological innovation processes and payoffs. It keys on the contextual forces that

drive the book: emerging technologies and the information economy. Chapter 2

builds on this to explain what tech mining entails and to the describe the books

organization.

1.1 why innovation is significant

We use innovation to mean technological change. We are concerned with

technological change resulting in practical implementation or commercialization, not

just idea generation. This section addresses the importance of technological innovation

to todays competitive economy and polity.

Todays worldwide economy depends on technology and technological innovation to an

extraordinary degree:

- We perform a lot of research for one thing. American companies spend over $

100 billion annually on R&D; for another data point, the Organization for

Economic Cooperation and Development (OECD) countries spend over $ 550

billion in 1999 (about 70% by companies, 30% by government). That research

pays off participating companies in the U.S. Industrial Research Institute

estimate average new sales ratio the percentage of sales attributable to

products newly designed in the past five years at roughly 35%. In other words,

$1 of every $3 in their revenue comes from recent innovations.

- National economies depend critically on technology. High-Tech Indicators (

http://tpac.gatech.edu ) show that the U.S. once dominated technology-based

exports competition. Then Japan raced up to become a staunch competitor. Now

other countries are advancing dramatically. Tiny Singapore now exports

technology-based products at the level of the European powers. China isadvancing dramatically in technology-based exports, but also in R&D that will
http://tpac.gatech.edu/http://tpac.gatech.edu/


2/12

drive future generation of products and services. And they are not the only ones

looking ahead. The 371 expert panelist anticipate that, in another 15 year,

essentially all of the 33 countries tracked will be significant high-tech

competitors.

Technological innovation impacts our lives in many ways, some direct

and some not so direct. High-technology companies are significant and growing

component of the economy , contributing over 20 million job in the U.S.

(Hecker, 1999). The competitiveness of those companies depends on innovation,

credited with being the main economic growth factor in the western world.

Innivation delivers substantial public and private returns Mansfields

classic survey (1982) on the 37 innovations concluded that the firms median

return on investment was close to 25 cents on every dollar. And the public

benefits of innovation far outweigh the firms benefits 70 cents on every dollar

spent on R&D is returned to society. Despite these rosy average returns,

Mansfield and other find that innovation is highly risky, and failure can be

immensely costly. In some cases, companies bet their existence on the success of

an innovation.

Innovation is improving our standard of living. Developments is medical

and pharmaceutical technologies have delivered extensive returns in health and

life span. The toddler of today can expect 25 more years of life than the newborn

of the year 1900. Death rates from infectious disease have been reduced 10-fold

over the course of the previous century. However, we remain engage in an

evolutionary war with infectious disease and continue to struggle with cancer

and vascular diseases (Lederberg, 1997). Our health and welfare is intimately

linked to innovation.

Without belaboring it, innovation is vitally important to scientist and

engineers, privare and public organizations, and society. Our key underlying

premise is that tech mining facilitates innovation. To accomplish this, tech

mining relies on understanding technological innovation processes to track them

effectively and to inform decisions about R&D and subsequent implementation

and adoption choices.

1.2 Innovation processes


3/12

Our colleague Mary Mogee defines (1993) as the process by which technological

ideas are generated, developed and transformed into new business products,

processes and services that are used to make a profit and establish marketplace

advantage. Lets explore this process to figure out empirical measures deriving

from innovation activities to generate actionable technological intelligence (tech

mining).

We briefly scan the rich history of models of technological innovation process.

Dating from the 1950s, the technology push model focused on R&D as generating

the essential push that prompts new products development, which the marketplace

then accepts. The realization that many innovators and institutions deliberately

frame R&D to meet perceived market opportunities suggested the market pull

model. This reversed the main influence pathway to begin from the customer. The

chain link model offered a compromise between the two, acknowledging that flows

between technology and the marketplace are iterative and multidirectional. This fist

class of models is basically singular in nature one organization generates new

technology and takes it to market.

A second class of models recognizes interplay among institutions in generating

and acting on science and technology. The policy network approach acknowledged

that institutions exist in a framework of competitive and collaborative relationship.

As the great central R&D laboratories (e.g. Bell Labs, IBM) shrank and distributed

activities among operating divisions companies turned outward for science and

technology input. Governmental and academic R&D eased from the isolated, single-

investigator model of science. Organized research units fostered interdisciplinary

and interinstitutional collaborations. Institutions share and compete for the R&D

finding of innovators, with significant knowledge spilovers. Notions such as

regional innovation center emerged to bolster purposeful interchange of science and

technology approaches and results. A complimentary perspective, the socio-

technical systems approach, examined how different innovators link and unify ideas.

This evolutions points toward networks of concepts and material objects

(artifacts) forming a stratum for creation and dissemination of new science and

technology knowledge, resulting in technological innovation. (Chapter Resources

adds pointers to continuing refinement of such networking models).

We see networks again networks of researches and networks of ideas. Theseknowledge networks are woven by many individuals certainly by scientists and


4/12

engineers and also by the many institutions that support and fund new new R$D

activity initiators. Like the webs of knowledge they create, individuals and

institutions find themselves in complex and networking activity. Ideas compete and

become interlinked. Innovators select, vary, and propagate the successful ideas.

Institutions construct teams of innovators and cooperate and compete with other

institutions. Initiators fund the research and development activities of institutions.

At the foundation of the system lies the natural world. Ideas are tested constantly

against the facts and needs of the real world.

This networking interchange provides the essential opportunity for tech mining.

The various exchanges of science and technology information effectively

instruments (document) knowledge at all four levels. How so? Innovators (scientists

and technologist) produce finding. Institutions provide incentives for innovators are

reflected in their publications and patents. Relationships among innovators can also

be discerned from paper (journals and conference) and patents. Also, the

institutional arrangements, in funding, conducting, and disseminating R&D, often

are reflected in the details of those publications and patents. So, publications and

patents as by products of the exploitation and exploration of science and

technology provide a lot of insight into actual practices leading to technological

innovation.

Innovation is significant! But how can tech mining assist in the innovation

process? In the nest two sections we examine innovators and innovative institutions

in society. Our brief survey suggests challenges and needs faced by these groups

and individuals.

1.3 Innovation institutions and their interests

Lets examine the institutions that fund perform research, with an eye toward how

tech mining can further their interests. At least five sources fund research industry,

government, education, non profit, and cross-national funding. Recent source place

industrial funding of R&D at more than 63% of total (OECD, 2003). In the United

State, the Federal government is the largest single source of R&D funding, High-

technology manufactures fund the highest portion of industrial R&D activity.

Service-related R&D spending is much smaller, but a rapidly rising proportion ofthe total. Most industrial R&D focuses on development related efforts. Notably,


5/12

industry is the largest performer of R&D. Most of that is done by the largest

companies (NSF, 2000). Data for 1997 show five leading U.S. companies

contracting for $3 billion or more: GM, Ford, IBM, Lucent and HP.

Companies faces multiples challenges in making those huge R&D investments

(Tassey, 1999). Technology investment is inherently risky, and ones R&D often

results in spillovers whereby others accrues benefits from it. So, before diving into

an R&D program, the company needs to ascertain what existing knowledge might

be capitalized upon. Tech mining can uncover external research results to save

rediscovering that wheel. It can identify intellectual property (IP) land mines

before a substantial technology development program finds itself blocked.

If new development activities need to be initiated, one method of reducing risk is

strategic partnership. This allows individual partners to leverage their resource,

reduced cost and enable activities that might not otherwise have been possible.

Additional benefits corporations may include speeding up the market place (NSF,

2003). Tech mining can find out what R&D others are pursuing and pertinent IP so

that you can determine the best route to your goals, possibly via partnering in some

form.

Academia is a significant source of public science and the dominant generator of

basic research finding. Government also plays a very substantial role particularly

though defense funding in the support of new technology development. Industry is

often involved in carrying technological developments to fruition, so it pays to keep

tab on university and governmental lab research activities.

Significant issue for innovators and their institutions include:

- How can recognize and reward new and innovative ideas in our organization?

- How do we capitalize on the strengths of our knowledge to attract new funding?

- Can we attain new knowledge before our competitors?

- Can existing, publicly available knowledge provide us with needs solutions?

Note the extent to which these issues demand knowledge of others science and

technology activities and tech mining can provide this.

The recognition that new products and processes are central to corporate renewal

underlies these issues and why we care about them (Danneel, 2002). A careful balance

must be sought between exploiting existing competencies and discovering and

developing new competencies. New products close to existing core capabilities have agreater chance of success. Unfortunately, however, existing competencies can croed out


6/12

opportunities for growth resulting in inflexibility and missed opportunities. Positive

feedbach causes innovative path dependencies, that is, technological choice that lock

a firm, agency, or academic unit in or out of specific development trajectories. With

respect to tech mining, we need to track both internal and external technological

capabilities. Procter & Gamble tells a story on itself. After submission of a patent

application, they got back good news and bad. The bad a patent had already been

issued. The good they held it. Its hard to keep track of your own technology, much

less everyone elses.

The customer is also critical to new product development. New products build on a

match of new ideas to existing competencies. Successful products stem from the

intersection of customer need and technological competencies. Institutions that are

successful in new product development must understand their customers building

upon the existing customer base and learning about new customers, or formerly

unrecognized needs of old customers. This is another form of intelligence essential to

successful innovation.

March (1991) characterizes the options of building upon old knowledge or

reaching out to find new knowledge as exploitation versus exploration. Exploitation

is a process of linking integrating existing knowledge, combining and recombining

core competencies to meet market need. Exploration leveragewhat is known to gain new

knowledge. Tech mining seeks to contribute to both.

1.4 Innovators and their interests

Where do you find innovators (largely scientists and engineers)? The United States

has the greatest concentration. Interestingly, nearly one in eight U.S. scientistis or

engineers was born abroad, coming particularly from Asia.

The European Union and Japan also have large scientific and technical work-forces.

An estimated two out of three scientists and engineers today are men; however, this

situation is rapidly changing. By the year 2020, there may be as many women as men

engaged in innovative activities. Most of todays technology innovators work in

industry, taking on R&D and various other roles. Although hard to categorize (much is

not considered R&D), innovative activities of the advanced service sectors are

ascending rapidly.


7/12

In tech mining we often want to kwon whos doing what.Tracking ideas and

individuals provides vital intelligence that serves various innovators (and technology

managers).

The output of successful industrial innovation is reflected in new products,

processes and services. the IP involved may be protected through patenting. Some

sectors patent more than others as discussed in Chapter 12. On average, an industrial

scientist innovator patents once every six year. As we shall see, however, averages can

be misleading the majority dont patent at all, whereas a very few patent a very lot.

Industrial researchers are also avid consumers of science and technology information.

Academic innovators contribute to public knowledge mainly through publication

(journal and conference paper). An academic scientist or engineer is 45 times more

likely to publish his/her research than an industrial counterpart. Not surprisingly,

academic research contribute about three-quarters of all publicly available R&D. And

although comparatively infrequent, academic patenting a rapidly growing (Hicks et al,

2001). Academic innovators have traditionally also been the greatest consumers of

science and technology information.

Too often, innovators reproduced solutions that are know elsewhere. One Russian

research, Genrich Althuller, established that roughly 35% of all patent solved problems

well kwon in other disciplines or industries. Less than 1% are merely minor extensions

to established technologies. Less than 1% of all patents involve creation of foundational

knowledge. Altshuller developed tools to simulate invention TRIZ - that introduce in

Chapter 12.

Finding the science and technology information need to inform R&D present a

vexing challenge to innovators. Innovations are increasingly dependent on new science,

and science such as nanotechnology are increasingly multidisciplinary and therefore

distributed across multiple fields. Observers have called for a device called the

memex a machine that could link and correlate ideas, finding connections and

recommending relevant resources. Today, we have the Internet, but the vision of

seamless network of knowledge seem as distant as it was thee 1930s when the memex

nation was conceived. (discusses further in Chapter 2).

The nature of the emerging technologies of interest is itself changing. Many of our

technology analysis tools were generated for an era of industrial (manufacturing)

technologies dominated by defense interest (during the Cold War era) (TechnologyFuture Analysis Methods Working Group, 2004). In addition to information


8/12

technologies, we see emergence of the molecular technologies biotech, advances

materials, and nanotechnology. Managing these emerging technologies requires

adaptation to science-based industry these are industries whose competitiveness I

rooted in the appropriation of basic research knowledge. Besides challenges in

identifying and fulfill opportunities in the these emerging technologies, there are

corresponding challenges in identifying threats and abating the attendant risks. Cross-

disciplinary and cross-sector knowledge awareness and integration is mandatory

(Rasmussen, 1997). Tech mining can play a major role in forming these integrative

links.

New scientific knowledge is generated primarily in specialist communities. Ins

some ways the quality of this new knowledge can only be assessed by others in the

same community. But the knowledge itself must be utilized and integrated by other who

often have vastly different skills. Rcognizing expert specialist can prove challenging.

Studies of engineers serve as hubs for much of the collaboration. Others are connectors,

individuals who synthesize and integrate knowledge hubs and connectors can be

extremely useful in exploiting the knowledge of the community.

In this section we have presented a broad-brush portrait of the innovators

particularly researchers and inventors. We recognize that others play essential roles in

achieving innovation, for example, new product developers, software engineers, and

technology managers. Keeping abreast of science and technology information is vital in

creating new knowledge as well as in rediscovering existing solutions to problems.

Challenges arise from science and technology specialization and the increasing volume

of R&D finding.

Innovative individuals and institution face a number of challenges challenges that

tech mining can help address. Among these challenges, we have identified the

following:

- Innovation is essential, but risk management practices are needed.

- Innovation necessitates identifying both individuals and institution with

complementary knowledge; R&D partnership are commonplace.

- Knowledge is often specialized in character, yet it must be synthesized and

integrated by other nonspecialists.

- Too many organizations reinvent the wheel.

- Science-based industries are making very direct connections between basicknowledge and the marketplace.


9/12

These first sections of the chapter have addressed the first of two drives of this book

emerging technologies. The nest sections transitions to the second driver the

information economy Out of confluence of the two comes the hope for exploiting

electronic forms of science and technology information in new and powerful ways

tech mining.

1.5 Techological innovation in an information age

We truly live in an information economy the developed nation have largely

transitioned from manufacturing to service (information) economies, The service sector

contributes no less than 64% of the U.S. GDP as of 1997. The U.S. National Science

Foundation shows U.S. high-tech service valued at over $3 trillion for 1997.

Amazingly, U.S. commercial service export were valued at $240 billion in 1998 (do you

even think of service as exportable?), Look around to see how computers and

telecommunication permeate our lives at work, school, and play.

Pervasive waves of increasing information accessibility characterize recent decades.

In the 1980s we did two studies for the U.S. Industrial Research Institute (IRI) (Rossini

et al, 1988). These documented the remarkable transition is how engineers and the other

technical professionals worked. As of 1980, only about 10 % of them routinely used a

computer in day-to-day activity, by the end of that decade, most did so (about 80% in

large U.S. companies first curves).

On the heels of this transition, another S-curves (not shown) would track how others

came to routinely use personal computers students, office workers and managers. In

the 1990s, the developed economies of the world experienced another transition those

computers became connected. The telecommunications industry saw data transmissions

overtaking voice transmission. We experienced the takeover of our lives by the Internet

and E-mail (second curves). Similar S-shaped curves could be drawn indicating the

penetration of these phenomena into our work and home lives (not shown). Information

technology (IT) literally changed lives around the globe, of course, unevenly.

What is the corresponding transition of this decade? We believe it is not an IT

phenomenon as such (see Sidebar), but, rather, it derives from the wide adoption of

computers in the 1980s and networking in the 1990s namely, the increased

availability of information (third curves). In the words of Bill Gates, we haveinformation at our fingertips.


10/12

Sidebar: Technological Information does not Equal Technology

This book does restrict technology to information technology. The changing

technology to be managed certainly. Includes computing and telecommunications, bat it

also includes transportation, energy, chemical, pharmaceutical, aerospace, military,

system and forth. The critical resource of Information Age is not IT, it is information.

Yhe massage, implicit in Figure 1-4 is that new capabilities get adopted first by

lead users them by others. These new capabilities are used first to do our old tasks

faster, them to do them better, them to do entirely new task. We are now beginning to

make fuller use of electronic information. Information worker productivity is increasing

after decades of investment in IT (Greenspan, 1998). Moreover, we are going beyond

the stage of doing our old task more efficiently, to contriving new tasks that take

advantage of the easily available information. This book is about one such opportunity

exploiting electronical information resources that pertain to charging technologies in

new and powerful ways.

Technology information is particularly vital to use who would manage better.

Consider the information implication of the fact that we do a lot of R&D; Knowing

about others research (and development) is critical few companies can do technology

development all by themselves today. We anticipate that by about 2010, virtually all

successful technology managers will avail themselves of empirical, not just intuitive,

knowledge. Those who dont get it will get gone.

1.6 Information about emerging technologies

Consider the following propositions (which will constitute this chapter take home

massages):

- Innovation is significant forces in todays high-technology organization.

- Technological innovation can be measure and understood.

- Innovation can be tracker we have the tools to monitor new developments in

science and technology.

- Innovation involves ideas, generated by innovators, and institutions that initiates,

perform, and apply R&D.


11/12

- Organization that track science and technology gain significant market

advantages over those who do not.

- The are advantages in tracking innovation for all participants in the innovation

cycle.

The importance of networking to innovation payoffs from pursuing technological

intelligence. Information technology network are a part of these social networks, and we

can make fuller use of electronic science and technology information.

The quantity of science technology information is huge:

- Research generates a tremendous amount of information for example the two

databases, El Compendex and ISPEC, capture a sizable portion of the worlds

major engineering journal and conference paper together they add about

500.000 paper each year.

- Other databases capture other research segment for instance, Web of Science

provides acess to some 12.5000.000 fundamental research paper and Mediline

has compiled over 11.000.00 medical research abstracts (as of 2002).

- Americans applied fot 125.000 U.S. patents in 1997. Foreigners filed for

another 110.00 U.S. patents; more amazing is that Americans applied for

1.500.000 patents in other countries in that one year.

Besides R&D, there are standards, press releases, business news, and signpost of

popular acceptance. The information spews out though myriad pipers print news,

electronic media, human contacts, and the Internet. It can seem like an information

onslaught. Nonetheless, you need to track this technology information and extract

knowledge pertinent to your work. Whether or not you do, tour competitor will.

Were saying that you need to know about charging technologies and that there

are daunting amount of pertinent technology information pouring forth. Intimidating? It

need not be. Our massage is that you can get at the needed information with powerful

new tools that make this relatively fast, affordable, and easy.

The search for emerging science and technology information is not unbounded.

The are 10.00 publicly accessible databases. Of those, on the order of 400 relate to

technology.

However, 15, or so, key databases filter and compile major segments of keypublication and patent information. Depending on core interest (e.g., pharmaceuticals,


12/12

chemicals, aerospace, consumer goods), a competitive technological intelligence and

tech foresight of what they need to know. The worlds leading center of

scientometrics the Center for Science and Technology Studies at the University of

Leiden accomplisher most of its work of profiling national and organizational R&D

publication by using just four databases SCI, INSPEC, El Compendex, and Mediline.

The information contained in such databases is rich and suitable for mining.

Assessment and monitoring of innovation is crucial to success. Innovative

individuals and institution have core challenges in managing R&D. What are needed are

tools to help manage this wealth of science and technology information. In the nest

chapter we introduced a suite of tools to so tech mining. Well show how the

innovation management challenges can be met head on by exploiting publicly available

sources of science and technology information.

Chapter 1. Take home massages

- Innovation is significant force is todays high-technology organization.

- Technological innovation can be measured and understood.

- Innovation can be tracked we have the tools to monitor new developments in

science and technology.

- Innovation involvers ideas, generated by innovators and institutions that initiate,

perform, and apply R&D.

- Organizations that track science and technology gain significant market

advantages over those who do not.

- There are advantages in tracking innovation for all participants in the innovation

cycle.

Tech Mining Exploring New Technologies for Competitive Advantage

Documents

Transcript of Tech Mining Exploring New Technologies for Competitive Advantage