Essays on Expenditure in Research and Development, Open Innovation Coursework

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The paper "Expenditure in Research and Development, Open Innovation" is a perfect example of management coursework. The development of new ideas for both processes and products needs watchful efforts to innovate. Scientific progress was not as much structured during the nineteenth century and it has naturally risen from the developed ideas in the diverse areas of organisations. Moreover, the 21st century has experienced an increase in the emphasis placed on the facilities of formal research and development (R& D) as a source of innovation while the sources of ideas still flow from diverse quarters.

The pursuit of scientific knowledge and its applications to problem productions have been epitomised by popular research laboratories such as Dupont, AT& T, IBM, and General Electric. As much as we recognise that science has significantly contributed to the early industrial revolution in the United Kingdom, the modern corporate enterprise has also harnessed technology and science in the 21st century in a more extensive fashion within its organisational bounds. For the sake of economic well-being, systematic management rules are applied to practise scientific knowledge (Damanpour & Wischnevsky 2006). The innovation management process is equally critical, and present with its main challenges, and makes it a common challenge across many organisations.

Methodologies vary depending on the aspects of R& D emphasised, size, and to some extent personal management styles of organisational managers. Businesses that conduct research in the private sectors such as the pharmaceutical companies also devote important resources to developmental and applied for work. Numerous firms may not be familiar with development demands. Nonetheless, to be successful, the organisational ventures should effectively manage and blend both basic R& D with the strategic view to commercialisation either as part of innovation collaboration or more like as independently, such as cluster or network (Tidd, Bessant & Pavitt 2009). The management of external collaborations that plays a major role in the R& D process is the critical aspect of the innovation management process for organisations in a vastly connected networked industry.

This essay will be examining the significance of R& D in innovating organisations since it is being viewed as playing a major role in the innovative process. Open innovation Many organisations have now largely appreciated that in the current first-evolving business environment, there will always be an existence of ideas and more competitions outside the walls irrespective of the expertise and size the organisation have.

Markets are normally capable than individual organizations at relentlessly destroying and creating prospective innovations (Shavinina 2003). Hence, an organisation’ s innovative ecosystem presents the possibilities of enlarging and diversifying its innovation opportunities sources. Furthermore, the new development of technologies and market capabilities that are not available within organisations are often required by innovation. An organisation’ s innovation ecosystem hence consequently offers the prospects of outsourcing part of the innovation management and also accesses the best-in-class operators (Panayides 2006). Consequently, the entire progression of transforming a prospective opportunity or an idea into a profitable business needs various capabilities and skills at diverse stages within a considerable time frame.

This can as well be between a period of five to ten year period of going from a business notion on paper to beneficial and sizable business activity. Firms can thus focus on specific development segments instead of endeavouring to do everything for themselves (Sampson 2007). For instance, large firms scale the ideas up while the small organisations develop them (Fricke & Totterdill 2004).

This, in turn, insinuates that open innovation is all out the development of in-house prospects which have already been instigated outside, but at the same time equally about developing outside the organisation, other prospects have been commenced in-house (Andreas & Brettel 2012). This can be achieved through spin-offs or through licensing. These kinds of outsourcing are capable of eliminating or reducing distribution or production risks and costs and also propelling the project to target new applications and reaching larger markets.

Licensing can be utilised while trying to gain access to the corresponding technology or endeavouring to institute industry standards. Various Strategic and tactical benefits can be gained from open innovation.


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