INNOVATION or TECHNICAL CHANGE FOR

DEVELOPMENT .
What is Innovation or Technical Change?
Broad Types of Innovation and their
Characteristics;
Importance of Innovation to
Development;
Requirements for efficient Innovation;
Innovation as an evolutionary and
dynamic process.
BROAD TYPES OF INNOVATION
Major or Radical Innovations – these push outwards
the technological frontiers. Examples include:
development of motor cars, aeroplanes, micro
electronic revolution etc.
They come up with novel processes, methods and
ways of doing things which ultimately improve
efficiency and productivity.
To effect these types of Innovation requires:
 Heavy initial capital outlay and investments;
 Highly specialized technical and managerial skills and
effort within R&D and related centres;
 Involves heavy risks and uncertainty;
 Associated with long gestation periods.

Major Innovations characteristically take place in

technologically advanced countries – where there
exists superior technological skills and other forms of
capabilities – eg institutions, structures, policies,
culture, environment etc.
MINOR OR INCREMENTAL INNOVATION
These are alterations, improvements and
modifications performed on existing, tried and
proven production systems. They are ‘further ados’
performed on original designs of production systems.
Though minor, but their cumulative impact on
productive efficiency and productivity may be as
great or even greater than that of major radical
changes (See Samuel Hollander (1962; Viv Walsh,
1982; Bell M(1982); etc.
To design and execute these types of Innovations
requires:
CONTINUED
i. Less capital outlay and investment;
ii. Less specialized skills and expertise; and oftentimes not localized
and limited to R&D and Design departments;
iii. They involve limited risks and uncertainties;
iv. They involve limited gestation period – if at all.

The majority of innovations that will take place in technologically less

advanced countries of the world (like Tanzania) will be of the
incremental and minor type – modifications and alterations on
original designs of imported technical systems. Examples are
abound.
For this reason, we are going to focus on this type of innovation –
INCREMENTAL or MINOR INNOVATION
 PHASES OF POST-INVESTMENT PRODUCTION EFFICIENCY

Index of
production
efficiency

Designed or
rated level of
efficiency
X1 X2 Y1 Y2 Z1 Z2

“Disembodied”
Start Up Efficiency Improvement“Capital-embodied”
Efficiency Improvement
Improvemen
ts Post-start up efficiency improvements with
existing basic facilities
Post-Investment Efficiency Improvement
VALUES OF INNOVATION
a) Economic;
b) Strategic;
c) Social;
d) Environmental;
e) Personal;
f) Political/security
INNOVATION- Continuation
1. Innovation: Is about growth; is a survival imperative
2. Innovation doesn’t just happen-is driven by
entrepreneurship
3. Innovation doesn’t happen from our hopes-complex process
and needs systematic management
4. Successful innovation managements requires:
i. Understanding what we are managing
ii. How we are managing
iii. Understanding the what, why and how (strategy)
iv. Understanding innovation as a moving target-building
dynamic capabilities
INNOVATION PROCESS MODEL
(Ala Bessant and Tidd)
INNOVATION JOURNEY
(Ala Dave Francis)
REQUIREMENT FOR EFFICIENT
INNOVATION MANAGEMENT CONT…
1. Technological and Managerial Capability
2. Innovation culture and norms
i. Team building and working
ii. Networking and partner shipping
iii. Stay focused
iv. Build on other peoples’ ideas
v. Timeliness
vi. Attentive listening
vii. Differing judgment
REASONS FOR DISCUSSING INNOVATION IN
DYNAMIC WAY
1. To highlight the technological dimension of
development
2. Process being the core of development
3. Away from thinking that R&D being the only source
of innovation