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A Valley of Death in the Innovation Sequence: An Economic Investigation
Abstract
The road between a discovery generated from basic research to a commercial product or process is long and, according to some, rife with significant roadblocks. Innovators and investors alike routinely claim that a 'funding gap' or 'Valley of Death' exists between basic research and commercialization of a new product. We show that the standard explanations for underinvestment in R&D are not the cause of this phenomenon. Rather, the Valley of Death occurs only in the presence of 'non-economic' investments (such as government expenditures on basic research) that are made in very early stage research without sufficient attention to the likely investment decisions at later stages of the innovation process. Other implications for the Valley of Death of government funding of R&D are also considered. Some policy implications of these findings are provided.
... Another avenue underlying this recommendation is recruitment of the right talents (Midler, 2019). Here, the scholars mentioned prior entrepreneurial experience, sufficient technical and operational competence, relationship management and networking (Arciénaga Morales et al., 2018), project and innovation management expertise (Arciénaga Morales et al., 2018;Magruk, 2016;Zhu et al., 2012), and profiles with entrepreneurial dynamism, internal flexibility, and responsiveness to changing circumstances (Lenzer, 2019) and Beard et al. (2009) highlighted the need to equip employees with a knowledge-creation, integration and sharing culture, including but not limited to: knowledge of technology trends for strategies, market requirements, knowledge about the high-tech startup's actors' network and stakeholders, interorganizational knowledge processes, financial knowledge for calculations, funding opportunities, and decision-making. ...
... Of course, every startup has a team, but it is vital that the team has the skills needed. The emphasis should be on acquisition and retention of all necessary competences for the startup (Midler, Magruk, 2016;Zhu et al., 2012), business (Chi-Han & Hung-Che, 2016;Cooper, 2013;Newey et al., 2012;Beard et al., 2009), and entrepreneurship skills (Lenzer, 2019;Beard et al., 2009). When talking about a high-tech startup, technical skills refer to both hardware and software skills for the new technology development, management and commercialization. ...
... Of course, every startup has a team, but it is vital that the team has the skills needed. The emphasis should be on acquisition and retention of all necessary competences for the startup (Midler, Magruk, 2016;Zhu et al., 2012), business (Chi-Han & Hung-Che, 2016;Cooper, 2013;Newey et al., 2012;Beard et al., 2009), and entrepreneurship skills (Lenzer, 2019;Beard et al., 2009). When talking about a high-tech startup, technical skills refer to both hardware and software skills for the new technology development, management and commercialization. ...
In recent decades, more and more startups are mushrooming, with modernization and creativity brought about by digitalization. They are technology-based startups. They provide outsize contributions to employment, innovation exports, productivity growth and spurs to innovation. However, only 10% of new ventures are able to survive the first three to five years after their launch, due to the so-called “Valley of Death.”
To address the problem of the Valley of Death, a list of strategies is provided in this book. These strategies are based on the lessons from Finnish high-tech startups. The lessons are derived from various empirical studies between 2012 and 2021. The study participants are successful entrepreneurs who hold various position in their companies, for example chief executive officer, chief operation officer, innovation manager, research manager, and business development manager. Similarly, the study participants include many startup founders, co-founders, business advisors, technologists (scientists and engineers) and technology transfer officers.
Most importantly, these strategies are presently being used by high-tech startups from Finland, the United Kingdom, the United Arab Emirates, Ireland, and Nigeria. Feedback from the pilot startups has been positive. The strategies are explained simply so that practitioners can understand and apply them easily. Likewise, the strategies are based on scholarly articles which are supported by the entrepreneurship and commercialization theoretical frameworks.
... It is also described as the inability of a startup to have a breakthrough [15,96]. Other scholars characterized VoD as a funding gap (e.g., [13,92,119,147]), a failed technology commercialization (e.g., [48,58,76]), or a lack of startups' governmental support (e. g., [14,39,105,151]). Considering these explanations, VoD can be regarded as an unfavorable business condition that any new enterprise can witness during their early life cycle. ...
... Magruk [85], Cheah [26], Collins et al. [28], Bandera et al. [11], Isaacs et al. [68], and Thies et al. [137] echoed this cause that the fear of high risks would lead to VoD. These scholars, Gicheva and Link [54], Valverde et al. [142], Gobble [56], Newey et al. [103], Foster [47], Beard et al. [14], and Fujiwara [49], mentioned this cause before the above scholars. Thus, it was agreed that an overestimation or lack of estimation of risks is a cause of VoD. ...
... They suggested that collaboration with academic and research institutes is important. A similar viewpoint was supported by Gicheva and Link [54], Weyant [147], Emmert-Buck [39], and Beard et al. [14]. ...
The Valley of Death (VoD) reflects a series of challenges facing technology-based companies during their early development stages. Extant literature highlights the need for startups to equip themselves with the tools and resources to manage this turbulent transition. However, the existing frameworks propounded by fellow scholars and practitioners regarding VoD are fragmented, each covering only a few issues in the chasm. Thus, the current article proposes a new and comprehensive model for high technology-based startups. The new model emerged from an in-depth review of 128 scholarly materials and empirical data collected from 30 startups (from artificial intelligence, virtual and augmented realities, internet of things, medical, and cleantech industrial sectors). The model was piloted in three pre-startups. The model adds on the existing VoD frameworks to provide a holistic baseline for future research in this field by presenting different challenges underlying the pre-establishment years of a company while addressing courses of action needed to overcome this perilous transition.
... En general, el proceso de innovación se considera complejo y poco estudiado, específicamente en la fase intermedia entre el fin de las actividades investigativas, el inicio del desarrollo de nuevos productos y el alistamiento para la comercialización (Auerswald y Branscomb, 2003;Beard et al., 2009;Belz et al., 2019;Dean et al., 2020;Jucevicious, et al., 2016;Markham et al., 2010), en la que se debería tener identificado y cuantificado un mercado para luego comenzar el desarrollo de la primera etapa de la tecnología, las pruebas piloto y, finalmente, introducirlos al mercado. Normalmente, allí surge el VM cuando se ha demostrado su eficacia -investigación-, pero es incapaz de obtener financiamiento para la fabricación y la comercialización -desarrollo de productos-. ...
... Apenas se encuentra en construcción una teoría que explique el VM, de manera que se han encontrado múltiples aproximaciones a este problema: de tipo financiero (Auerswald y Branscomb, 2003;Beard et al., 2009;Frank et al., 1996;Savaneviciene, Venckuviene y Girdauskiene 2015), basadas en teoría de recursos y capacidades (Barr et al., 2009;Colombo y Piva, 2008;Tassey, 2014), o bajo la perspectiva de desarrollo de nuevos productos (Markham, 2002;Markham et al., 2010;Schoonmaker, Carayannis y Rau, 2013) que, según Harmancioglu et al., (2007), aporta a la mirada de recursos y capacidades en el ámbito de los proyectos; estas aproximaciones mezclan elementos evolucionistas, institucionales y de sistemas de innovación (Munari, Sobrero y Toschi, 2018;Raven y Geels, 2010;Weiss y Bonvillian, 2013). ...
... Los autores que se centran en este factor (Auerswald y Branscomb, 2003;Beard et al., 2009;Munari et al., 2018;Daldrup, Krahl y Bürger, 2020) observan que en las primeras etapas del desarrollo de la tecnología es relativamente fácil obtener fondos públicos o privados para producirla y demostrarla, mientras que para la comercialización sucede lo contrario. Auerswald y Branscomb (2003) plantean que las asimetrías de información, la motivación y las brechas institucionales pueden desalentar sistemáticamente la inversión en el desarrollo tecnológico, constituyendo la causa fundamental del VM. ...
Valley of Death (VoD) is the name that is given to a gap that hinders the successful completion of Research, Development, and Innovation (R&D&I) projects, preventing them from entering into the stages of new product development, start-up, and commercialization. The aim of this article is to analyze the factors that come into play in the VoD of a group of R&D&I projects from different higher education institutions located in El Valle de Aburrá, Colombia. Given the complexity involved in the study of VoD in the field of R&D&I projects, we carried out a polar case study, since it provides information about VoD in specific projects, in order to provide recommendations for the phenomenon in general. The analysis was carried out from a qualitative approach, inductive and phenomenological in nature, studying six factors involved in the formation of the VoD: human team, competencies and roles, knowledge of the dimensions, networking, financing and risk perception, institutions, and mental models. It was found that the projects that have not yet overcome VoD, usually experience institutional difficulties (rules of the game) and mental modeling difficulties (representations of what should be done), as well as weaknesses in the construction of working networks. In the projects that did overcome the VoD, the factors related to human talent capacity building, alliances, and knowledge of the dimensions predominate as resolved.
... VoD has been predominantly conceptualized in extant research as a gap between basic research conducted by university researchers or scientists and product development conducted by firms (Hudson and Khazragui 2013;Upadhyayula et al. 2018). In this respect, scholars examined the role that governments, public support, and venture capital firms play in supporting innovation, addressing the "funding gap" associated with VoD (Auerswald and Branscomb 2003; Bonnin Roca and O'Sullivan 2020; Ford et al. 2007;Lefebvre, Certhoux and Radu Lefebvre 2020;Nemet et al. 2018). Research addressing VoD that occurs within the same firm, as opposed to other organizations (e.g., labs and university), has been scarce and focused predominantly on the role that individuals play in promoting projects for new product development (Chakrabarti 1974;Maidique 1980;Markham 2002;Markham et al. 2010;Schön 1963). ...
... For this reason, we explore the relationship between a firm's ability to overcome VoD and radical innovation performance. Studying this relationship is important, as prior research (Dedehayir 2018;Ford et al. 2007;Nemet et al. 2018) makes an implicit assumption that increasing the number of ideas that pass VoD will enhance innovation and facilitate the launch of successful new products. This premise is questionable and has not been adequately tested. ...
... Resources, however, often drop in between these two stages, creating VoD (Ford et al. 2007;Markham et al. 2010) characterized by underinvestment and premature death of promising innovations (Nemet et al. 2018). ...
Firms invest much of their capital into basic research in order to generate new ideas and technologies. However, converting new technology concepts into marketable products is difficult, and firms struggle with transitioning projects from a knowledge discovery to product development, a gap referred to as the Valley of Death (VoD). While the concept of VoD has been well documented, the literature provides little guidance on how this gap can be overcome within firms and what role broader organizational factors play in this process. Building on the motivation-opportunity-ability (MOA) framework, the authors propose and test a series of hypotheses using a survey of 308 managers. The results indicate that while organizational complexity does not directly impact a firm's application ability (the ability to overcome the VoD), product complexity has a positive effect. In addition, both organizational and product complexity interact with market turbulence in influencing a firm's application ability, and there is an inverted-U shape relationship between application ability and radical innovation performance.
... However, much of the inventive activity emerging from university labs is lost along the development pathway to market and ends up in a proverbial Valley of Death (Ford et al., 2007). The consensus belief cited for this failure is a lack of funding in the applied research stage of development (Beard, Ford, Koutsky, & Spiwak, 2009). In response, federal policy is evolving and since policy-making is a function of shared beliefs and perceptions (Sabatier, 1991), the first objective of this study confirmed the current meaning and common use of the term Valley of Death by policy-makers and legislators. ...
... "A 'funding gap' or 'Valley of Death' exists …" (Beard et al., 2009) "The 'Valley of Death', a term used to refer to ideas that are interesting but too early stage to attract commercial investment … " (Wylie, 2011(Wylie, , p. 1169). ...
... Building on the work of Auerswald and Branscomb (2003), Beard et al. (2009) (Beard et al., 2009). This conclusion prefaces the need for a review of past and currently evolving federal policy aspects of the Valley of Death, which is provided in the following section. ...
At least as far back as the enactment of the Bayh-Dole Act of 1980 there has been an ongoing desire on the part of politicians, policy-makers and the public in the U.S., to obtain greater economic returns on the federal investment in publicly funded university research. Today among policy-makers there is an apparent belief that a capital shortage in the mid-stages of technological development is the rate-limiting factor, preventing the maximum flow of university inventive knowledge from entering the marketplace. The consequence is a Valley of Death demise for the vast majority of university inventions. In order to mitigate the problem, changes to federal granting policies are placing increased emphasis on funding more applied and translational research than basic fundamental science. Given the foregoing direction of policy, the study set out to confirm the current understanding of the Valley of Death on the part of policy-makers and relate this understanding to the historical evidence. Consistent with present-day political pronouncements, the study findings verify an overwhelming belief that a shortfall of applied research funding is the root cause of the Valley of Death. Policy-makers believe this shortfall constrains the development of basic research into commercializable products. However, the study also found that this perception is inconsistent with the empirical evidence. The study reveals a gap between these sectors but the gap is independent of the stage of technological development. A funding difference extends the entire length of the research and innovation spectrum, suggesting other factors are responsible for the adoption of university inventions, bringing into question the direction and likely efficacy of current policy initiatives. The findings lend credence to the less cited cause of the Valley of Death, namely a Darwinian Sea of survival of the economically fittest technologies (Auerswald & Branscomb, 2003). The actual stage of development of a university invention will determine the extent of investment funding necessary for its continued development, but economic factors will determine if further investment in its development is warranted. A death does exist for many inventions, but it is the result of natural market causes and not a funding shortfall, per se.
... According to Norberg-Bohm (2000), the negative connotation of this concept in application to energy technologies is reflected in the unfortunately common experience of companies operating in the RE industry, where many new technologies that get stuck in the valley "die" before being successfully commercialized. While this does not necessarily imply inefficient allocation of public funding (Beard et al., 2009;Hartley & Medlock, 2017), it leaves ample room for intervention for innovation policy. There is an untapped investor pool, with too many information asymmetries and competition among investors rather than collaboration. ...
... This is the case, for example, of sustainable energy technology firstof-a-kind (FOAK) projects, which face tremendous challenges in raising sufficient funding to achieve financial close, complete construction, become fully operational, and thereby prove to the market the efficient operational performance of the innovation (European Some proxies, as presented below, can help spot the magnitude of the VoD in RE sector. Following Beard et al. (2009), to better understand the VoD, we must evaluate investments as a multistage process. Therefore, the first proxy could be the amounts invested across different RE technologies and their trends over time. ...
The European Union (EU) has committed to becoming a global leader in renewable energy. Reaching this target implies fostering innovation activity to maximize the competitiveness of the European renewable industry. By relying on a case study approach based on a small number of in‐depth interviews with selected stakeholders, this paper illustrates one of the main factors hindering technological development in the renewable energy sector in Europe. More specifically, the paper focuses on the so‐called “valley of death,” which traps promising technologies in a “limbo.” While ready to be deployed from a technical standpoint, these technologies are not cost competitive and, paradoxically, only their widespread commercialization would allow to drive their cost down. The paper also identifies a mix of policy solutions that can effectively support the competitiveness of the EU renewable energy industry. While more public funding to deploy promising renewable energy technologies is certainly needed, EU policymaker should also improve synergies between EU funding programs at all stages of the research and innovation process. In addition, introducing an EU risk insurance and guarantee fund would ultimately allow to reduce deployment costs and boost commercialization of new technologies.
... Management research has drawn attention to the difficulties in securing finance at this phase (Auerswald and Branscomb, 2003;Beard et al., 2009;Lefebvre et al., 2020), and how policymakers have tried to bridge this gap (Bonnin Roca and O'Sullivan, 2020;Frank et al., 1996;Wessner, 2005). And yet, even where governments have increased the availability of financing and management support for the Valley of Death phase, the challenge of crossing it and securing first major commercialisation investment persists (EARTO, 2015;Rasmussen and Sørheim, 2012;U.K._Government, 2013). ...
... The transition of a technology across this valley might be expected to present a difficult management challenge. It is well-established that the early stages of science-based innovation are characterised by uncertainty in the understanding of both technology and markets (Van de Ven et al., 1999); and that the basis for investment decisions is never secure (Beard et al., 2009). The organisational complexity inherent to this development phase has been contrasted with the two better-organised innovation functions that surround it: research and commercialisation (Markham et al., 2010). ...
The aim of this paper is to elucidate the innovation processes of technology development across the Valley of Death. Hitherto, studies of the innovation process for this difficult early phase in technology development have implied a linear progression or have privileged the contribution of intermediaries channelling government-funded support. By making use of process theories, and pursing a novel action research methodology with all innovation actors involved in the Valley of Death transition, then a wider processual perspective is realised. This paper adopts a realist evaluation approach in order to integrate the findings from six different technology development projects. By these means, we suggest that crossing the Valley of Death implies the successful completion of five distinct innovation processes. We construct a conceptual framework constituted of the five innovation processes, and argue there is more than one pathway for crossing the Valley of Death. Finally, we offer practical implications for innovation management at this phase of technology development.
... Another acknowledged problem in technology transfer is the so-called "valley of death". When new technologies are developed the step from a basic research results (TRL 3) to a product prototype (TRL 7) lengthy, expensive and difficult to fund (Ford et al., 2007). There is a reluctance from both government and companies and investors to fund the gap between research results and commercial product. ...
... A systematic approach to regional technology tech-transfer As detailed in the introduction, there are many problems, which hinder efficient transfer of research results to industry. Researchers not finding suitable applications for their research results (Gibbons, 1997), unavailable funding for bridging the valley of death (Ford et al., 2007) and regional lock-in (Fuchs and Wassermann, 2004;Morrison et al., 2013) are phenomenon which can stifle the success of regional innovation systems and buzzing technology transfer. Research and technology organizations are well networked in their regional environment but also maintain strong links on an international level through international research projects and experts (Martinez-Gomez et al., 2010). ...
A systematic approach for regional and trans-cluster knowledge and technology transfer which can be used by research and technology organizations to create a European technology transfer network for robot technologies is presented. The EU-funded project ROBOTT-NET developed and has been testing the approach over a period of approximately 3 years. As a result over 1500 people visited robot open labs, more than 300 people were taught about new robot technologies, over 70.000 people watched videos related to robotics and more than 100 technology transfer projects were conducted. A total of over 12 person years' worth of knowledge was transferred between regional innovation clusters within these technology transfer projects.
... [7][8][9] Yet, innovation is a complex phenomenon. Current understanding of innovation involves not only outcomes and individual characteristics, but the environments that support innovative outcomes [10][11][12] , and more prominently, the processes that innovators 13,14 and innovative teams organizations 15 utilize. In this study, we investigate the breadth of student understanding of innovation processes. ...
... Ford and colleagues simplified this definition into 3 stages 15 . Stage 1 focused on basic research. ...
... In einer einfachen Darstellung beinhaltet die Innovationskette typischerweise drei grundlegende Stadien (Abb. 1.1) [1,2]: das erste Stadium (Stadium 1) bezieht sich auf die Grundlagenforschung. Im dritten Stadium (Stadium 3) werden die Kommerzialisierung und Marktausbreitung einer Produktinnovation betrachtet. Das zweite Stadium (Stadium 2) besteht aus dem Übergang von einer Erfindung oder Entdeckung, die im Stadium 1 entstand, in eine potenziell kommerzielle Produktinnovation. ...
... Das zweite Stadium (Stadium 2) besteht aus dem Übergang von einer Erfindung oder Entdeckung, die im Stadium 1 entstand, in eine potenziell kommerzielle Produktinnovation. Der Ablauf der Innovationskette wird in eine Richtung von Stadium 1 zu Stadium 3 angenommen [2]. ...
Die grundlegende Idee des vorliegenden Falls befasste sich mit der Entwicklung einer elektrisch sehr gut leitfähigen, bedruckbaren Materialformulierung („Drucktinte“), die auf flexible Substrate aufgebracht werden kann. Somit können günstig herstellbare Komponenten für tragbare, flexible bedruckte Elektronikanwendungen zugänglich gemacht werden. Die Hauptfragestellung war, eine Alternative für die sehr gut elektrisch leitfähigen, jedoch sehr teuren Materiallösungen, die auf Au-, Ag- oder Cu-Kolloidsysteme basieren, zu entwickeln.
... In einer einfachen Darstellung beinhaltet die Innovationskette typischerweise drei grundlegende Stadien (Abb. 1.1) [1,2]: das erste Stadium (Stadium 1) bezieht sich auf die Grundlagenforschung. Im dritten Stadium (Stadium 3) werden die Kommerzialisierung und Marktausbreitung einer Produktinnovation betrachtet. Das zweite Stadium (Stadium 2) besteht aus dem Übergang von einer Erfindung oder Entdeckung, die im Stadium 1 entstand, in eine potenziell kommerzielle Produktinnovation. ...
... Das zweite Stadium (Stadium 2) besteht aus dem Übergang von einer Erfindung oder Entdeckung, die im Stadium 1 entstand, in eine potenziell kommerzielle Produktinnovation. Der Ablauf der Innovationskette wird in eine Richtung von Stadium 1 zu Stadium 3 angenommen [2]. ...
Die Frage „Was ist das richtige Verhältnis zwischen Grundlagenforschung und angewandter Forschung?“ hat leider keine allgemein gültige Antwort. Um sich mit der Frage jedoch beschäftigen zu können, sollten die zwei in der Frage vorkommenden Begrifflichkeiten und deren Verknüpfung näher erläutert werden.
... In this high uncertainty situation, start-ups are very vulnerable to failure. This situation is known as the valley of death (Beard et al., 2009) and therefore requires a unique approach to increase start-up success in this early phase. This situation demands a quality entrepreneurial discipline approach with a semi-scientific process to launch their business with a better chance of success (Camuffo et al., 2019;Mansoori, 2017). ...
Purpose
This paper aims to investigate the effect of business incubation metrics based on an adaptation of the lean start-up (LS) framework on start-up survival after incubation. This study also analyzes the obstacles in implementing the LS framework as incubation metrics.
Design/methodology/approach
This study uses mixed methods. Quantitative research using multiple linear regression was applied to the data of 30 start-ups incubated at Bandung Techno Park for the 2014–2017 period and survival tracking data after the incubation. A qualitative approach to complete the explanatory work was conducted through in-depth interviews with 12 respondents, including start-up graduates from the incubation program, program managers and mentors.
Findings
This study confirms that several LS incubation metrics significantly affect start-up sustainability after incubation. In addition, this study also explains several problems in applying the LS discipline that needs attention to increase incubation success.
Research limitations/implications
Research was conducted only at one technology business incubator (TBI) model that focuses on digital start-ups in the emerging ecosystem. Research results can be biased in different situations and ecosystems.
Practical implications
The explanation of the relationship of LS-based incubation metrics to the survival of start-ups, as well as the challenges of their implementation, can be a reference for TBI management to consider and prioritize intervention strategies, thereby improving TBI’s business processes and increasing the success rate of incubated start-ups.
Social implications
The creation of university start-ups and spin-offs has become a key performance indicator mandatory for technology universities in Indonesia. The existence of TBI institutions in universities as channels of technology commercialization is essential. The incubator’s success in creating a new technology-based company will have a significant social impact on the surrounding environment.
Originality/value
Although the LS method is popular in start-up communities and among practitioners, it is rarely used in the incubation process at universities. These results can be considered for university TBIs to explore LS as an incubation management tool to increase the success rate of incubated start-ups.
... Branscomb and Auerswald (2002) have identified various points of vulnerability for startups endeavouring to bring innovative products to market. One particular vulnerability is the so-called 'valley of death' (Ford et al., 2007), the 'Darwinian sea' between proof of concept and product development, a stage which Miller and Bound (2011) call the 'fragile days' of a young firm's existence. Precisely when this period starts, and how long it lasts, is not clear, despite the notion making intuitive sense. ...
This study suggests that a concierge service, provided by governments, can assist startups to gain streamlined access to the services, capabilities and capital required to bring innovation efficiently and cost-effectively to market. It analyses a range of concierge models in five separate jurisdictions to determine best practice. The paper develops a rationale and working definition for a concierge service that will assist public sector managers to help young high-growth SMEs and startups to navigate the increasingly complex innovation ecosystem.
... The uptake of new technology will, therefore, depend on overcoming the key constraints in the path to maturation of NETs, which includes the absence of capital, lack of political will, the near absent public demand and teething issues such as the free rider problem in the sector which inhibit innovation. This failure to grow is often described as a 'valley of death' problem, wherein new start-ups, and new technologies often fail to demonstrate their reliability at scale, which deters financial investors and results in such technologies never reaching the commercial markets where could expand (Nemet et al. 2018;Ford 2007). ...
This study investigates the Spatio-temporal multivariate analysis of extreme floodFloods events, overcoming some univariate analysis disadvantages. So far, a vast range of techniques has been expanded and applied in hydrology to perform univariate analysis of extreme eventsExtreme events. Nevertheless, univariate statistics cannot discover the floodFloods spatial interactions within catchments. Also, the multivariate analysis of such variables is less performed in this issue because the few applicable numbers of multivariate models are not suited to represent extreme values that co-occurred. Due to the constraints of some traditional multivariate techniques regarding the handling of the dependence structure, limited approaches are appropriate when the extreme values are likely to co-occur. This chapter investigates the behaviour of the coincidence occurrence of floodFloods events in both temporal and spatial resolution. One of the main concerns of this chapter is gaining more knowledge about the synchronous floodFloods occurrence in upstream sub-basins that can contribute to flooding risk management due to different spatio-temporal precipitation distributions outflows in these sub-basins. Moreover, the performance of simultaneous clustering events is illustrated based on some appropriate and newly proposed clustering methods. This chapter also explains the ideas behind the high dimensional clustering in concurrency of floodsFloods.
... Yet the majority of academic research supported by agencies like the NSF and NIH do not yield follow-on economic activity in a direct way, whether in the form of patenting, licensing, or entrepreneurship. And, for the subset of ideas that are commercialized, few make it past the so-called "valley of death" to reach a wider audience (Contopoulos-Ioannidis et al. 2003;Beard et al. 2009). ...
... While the literature on start-ups suggests that new companies rely on risky projects because of expected substantial returns, the logic of investors seems to be contrary. Studies on the "valley of death" emphasize that private sector investors invest little in early-stage or even intermediatestage projects, preferring to finance those that are closer to commercialization (Ford et al., 2007). In particular, Auerswald and Branscomb (2003) attribute the "valley of death" to both the fundamental limitations of investors in appropriating the returns of high technology firms in the early stages, as well as the consequent shift in information available for these. ...
L’objectif principal de ce travail de thèse est de contribuer à la littérature sur l’ambidextrie dans les PME en apportant, plus précisément, un regard sur la relation entre ambidextrie et risque dans ces entreprises. Ce domaine de recherche reste actuellement peu étudié car lorsque la littérature s’intéresse aux risques dans ces entreprises, elle ne les analyse pas à travers le prisme de leurs spécificités, mais cherche plutôt à appliquer des modèles d’analyse destinés aux grandes entreprises, qui peuvent s’avérer compliqués et coûteux. Dès lors, nous avons décidé de travailler spécifiquement sur les PME pour étudier ce qui pourrait être un facteur « stratégique » de réduction des risques – et donc de pérennité de celles-ci –, tel que l’ambidextrie. Notre principal objectif théorique est d’identifier le rôle que joue l’ambidextrie sur les risques inhérents aux PME selon leur stade et leur mode de développement. Nous avons pour ambition d’étudier, dans un premier temps, l’impact qu’a l’articulation entre exploration et exploitation sur le risque d’enlisement des start-ups dans la « vallée de la mort ». Dans un deuxième temps, notre objectif est d’explorer le rôle de différents types d’ambidextrie dans la réduction du risque de défaillance des PME matures. Enfin, dans un troisième temps, nous proposons de tester l’effet de l’ambidextrie ainsi que ses composantes, l’exploration et l’exploitation, sur le risque systématique pour les PME cotées sur le marché boursier. Notre intérêt porte donc sur la compréhension du rôle joué par l’ambidextrie dans la gestion des risques au sein des PME, en vue d’augmenter leur chance de survie à différents stades de développement et selon leurs différents modes de développement. Les résultats de notre travail doctoral montrent tout d’abord que si certaines entreprises sont nées ambidextres, d’autres apprennent rapidement à le devenir. Ils suggèrent toutefois que l’ambidextrie soit certes une condition nécessaire mais pas suffisante pour la survie de la start-up dans la « vallée de la mort ». En particulier, ils montrent que, face au risque d’enlisement dans la « vallée de la mort », les start-ups ambidextres doivent faire preuve d’agilité et utiliser les ressources disponibles au sein de leurs réseaux, certaines start-ups se considérant même comme des « réseaux d’équipes ». Dans un deuxième temps, nos résultats montrent que l’ambidextrie joue un rôle clé dans la gestion du risque de défaillance des PME matures familiales dans des environnements non-munificents, tant que la dimension de l’ambidextrie qui permet de réduire ce risque est alignée avec la taille de l’entreprise et le dynamisme de l’environnement. Enfin, nos résultats montrent aussi que, sur un risque systématique à court terme (un β à deux ans) des PME cotées sur Euronex Growth, l’exploration a un effet amplificateur tandis que l’exploitation a un effet réducteur. Contrairement à ce qui était attendu, l’ambidextrie a un effet amplificateur du risque systématique, ce qui invite à creuser les éléments explicatifs de ce résultat allant à l’encontre du constat largement accepté dans la littérature que l’ambidextrie joue un rôle positif dans la réduction du risque. Les enjeux managériaux de cette recherche consistent à éclairer les praticiens sur l’importance d’être ambidextre, mais aussi sur les efforts qu’il est nécessaire de déployer pour faire de l’ambidextrie un véritable vecteur de gestion des risques. Cela paraît d’autant plus important que le nombre de défaillances des start-ups est élevé et que de nombreuses PME peinent à grandir pour devenir des ETI. De plus, nous cherchons à mettre en avant une vision générale des risques auxquels les praticiens, et notamment les dirigeants, vont devoir faire face lors des différents stades de développement de leur entreprise, et l’importance que pourrait alors avoir l’ambidextrie pour leur entreprise.
... Next follows implementation and use, before the curve ends with confirmation of the decision. The turnover among firms in the phases between basic research and commercialization of a new products or technologies is known as the 'Valley of Death' (Ford et al., 2007;Beard et al., 2009). Since the 1950s, innovation has to an increasingly extent been formalized in economic models. ...
The purpose of this study is to examine the intensity of technology and knowledge transfer to the selected Baltic countries through foreign direct investment. The intensity of technology and knowledge transfer across the Baltic countries varies widely, with Estonia showing the leading position in the Baltic region. The amount of foreign direct investment in three countries is linked with the level of technology and knowledge transfer. It is indicated that during the Financial Crisis in 2008, the extent of foreign direct ownership changed in all three countries and later recovered. In the aftermath of this disruption, countries recovered their stock Foreign direct investment attraction rates and almost reached their 2004 level. Latvia has achieved a 50 per cent increase among Baltic countries, benefiting from it. Foreign direct investment and technology transfer increased through effective strategies and policies. In contrast, Estonia maintains a sustained stock foreign direct investment and has moderately lower margins than in other Baltic countries. Among countries, Estonia is the dominant stock FDI absorber in the Baltic region and have made significant contributions in the region.
... Next follows implementation and use, before the curve ends with confirmation of the decision. The turnover among firms in the phases between basic research and commercialization of a new products or technologies is known as the 'Valley of Death' (Ford et al., 2007;Beard et al., 2009). Since the 1950s, innovation has to an increasingly extent been formalized in economic models. ...
Knowledge and technology transfer are defined as driving force for new business models, innovations and economic development. The aim of the paper is to carry out detailed literature analysis in order to create new framework of technology and knowledge transfer that contributes to social innovation. To explore the level of investigation and latest trends of the topic, the article provides bibliometric analysis on knowledge and technology transfer. The information is obtained from Web of Science for the period of 1990 to 2021. VOSviewer has been used for citation analysis, co-authorship and bibliographic de-coupling. More than 5,000 articles have been found with the keywords technology transfer and knowledge transfer in the database WoS indexed at six well-established citation indexes. For the bibliometric analysis, 308 articles in the fields of economics and business management have been used. Results of this review integrates concept of social innovation into theory of knowledge-based of firms. Furthermore, it composes the model of new knowledge and technology transfer that leads to social innovations. Thereby, our article contributes to theory of knowledge-based of firms and the concept of social innovation. © 2021, Czestochowa University of Technology. All rights reserved.
... But as it is known, investment also attached risks to it, and as mentioned earlier the chances of success of innovation to be commercialized very small (Adams et al., 2006). Of course, this is contrary to earnings motivation in commercial companies in general (Beard et al., 2009). This risk will have a greater impact on small and medium-sized companies or new companies, because of the limited capital they have. ...
Although innovation is believed to be the right strategy to win the competition in an increasingly competitive business environment, not all companies are willing and daring to do so. Behind the opportunity to get profit from the sale of new products, innovation activities are also at risk of failure in doing commercialization of new products. The worst result that can be experienced by a company due to failure is death. This study aims to analyze how the influence of innovation activities measured through R&D expenditures and the number of resident patent applications on the death rate of companies in member countries of OECD. The results showed that the 16 countries sampled in the study are not proven that innovation activities can increase the mortality rate of companies in these countries. In fact, innovation activities were found to reduce the mortality rate of companies in the research countries samples.
... Previous assessment methods focus on innovative outcomes of student work 2,4,5 and student attitudes and perceptions of abilities and knowledge 6 . Another important aspect of innovation is the process by which it occurs 9,10 . While researchers have explored how experts describe their own approach innovation 10 , few have studied student understanding of this process. ...
... The most dangerous development stages are named Valleys of Death. The Valley of Death described as the place where good discoveries go to die because they lack the funding necessary to become a commercial product [14]. ...
The maritime industry, in keeping with the general trend of the fourth industrial revolution, is making huge progress towards greater shipping digitalization, going to develop autonomous shipping. The article offers an approach to the upcoming autonomous shipping phenomenon as an innovative technology, which develops and implements in accordance with the common technology innovations tendencies and peculiarities, described by Amara’s law, Gartner Hype Cycles, crossing technical and financial Valleys of Death.
KEY WORDS: maritime transport, autonomous shipping, Amara’s law, Gartner Hype Cycles
... Disrupting innovation is in general capital intensive; considering the transport sector, there are various certifications to be obtained before allowing the transportation of people, and huge validation tests. Therefore, innovators in this field are really crossing the valley of the death of innovation [13]. In this situation, if the value chain is against a disrupting innovation, what are the chances of success? ...
Design Theory and Innovation management theory are commonly used in many industrial sectors, especially in highly competitive areas with also the presence of a high level of substitution. Nevertheless, these theories can be useful as well as a support to decision making in slower paced sectors, as railways. In this article the case study of various highly innovative projects in railways sector will be addressed, from the point of view of innovation management and design theory, using TRIZ and some derivatives as General Theory of Innovation (G. Yezersky). The systems under analysis are, respectively: High speed train TGV, 1st driverless metro VAL, tramway ground power supplying, intermodality solutions, Aerotrain, Personal Rapid Transit, Swiss Metro, Hyperloop.
... Projects that include new chemical or metallurgical processes typically stall once they reach the so-called "valley of death" funding gap [3], illustrated in Figure 4. Prior to this point, the relative project investment is small and funding is predominantly provided by the public sector in the form of government grants and university subsidies leveraging corporate research money to encourage innovation and seed new concept. It is also the time in the project when there is the maximum ability to affect change in the project or the underlying process for minimum cost. ...
The resource recovery market has significant interest in new process development. One reason is that valuable materials for hi-tech applications are now present in sufficient quantities to warrant recycling efforts. Another is due to broad efforts on environment such as green chemistry and urban mining. However, many of these projects end in early development due to a lack of up-front integration on a broad range of issues such as experimental work, techno-economics, supply/demand, safety, regulatory landscape, and product quality. Using Li-Cycle, a Canadian lithium battery recycling company now engaged in process piloting, and as an example, this paper discusses the key barriers that companies developing new chemical or metallurgical processes face and how they can be overcome through an integrated approach. In the integrated approach, economic and market analyses commence as soon as possible in the project’s life. These are used to establish a clear process/project scope, define specifications for the process products, identify the key cost drivers to appropriately focus technical work, and ultimately provide an objective, effective, and efficient method to evaluate the merits of the project.
... The word stakeholder stands for technology user (Fig. 105) T TIG T SI T IDV T TDI. This aspect has been discussed by number of researchers with main emphasis of linking technology development and stakeholders requirement (Etzkowitz, 2008;Ford et al., 2007;GTZ, 2007). ...
Research and development (R&D) organisations in Tanzania use old systematic design
models that focus on the mere agro-technologies prototypes development, instead of
innovation of agro-technology for diffusion. A serious gap exists in the incorporation of the
agro-technologies diffusion factors in design models in R&D organisations in Tanzania.
The twin valley of technology death describes the technology development failures based
on business vision disregard. Technology prototypes or services are developed, though are
not linked to business setup, and that they don‟t get ripe to earn money through commercial
sales. This study identified that there is no customised model for agro-technology diffusion
in research and development organisations in Tanzania. Structured questionnaires,
interview with R&D organisation staffs and stakeholders and observation of activities in
these R&D organisations were used to collect data from sources identified. Literatures on
engineering design, technology development for diffusion and various models for
innovation were studied. The factors that were linked with agro-technology were identified
and their related variables and hence the model was developed, that proved to be useful in
guiding technology developers in ensuring the good final diffusion of technologies to
above 95% significant level. Regression analysis and system dynamic model development
and analysis were used to organise identified factors into agro-technology innovation
diffusion model. The model was calibrated and validated using data collected from various
R&D organisations in Tanzania between the year 2011and 2013. Factors that were included
in the model are: relevance of needs identification, need identification, interpretation of
variable into design specification, agro-technology validation process, agro-technology
information generation and proper agro-technology packaging and agro-technology
development stages importance. These factors were found to affect agro-technology
diffusion at a rate between 10 and 65%. It was noted that the development of technology
for diffusion is more than the prototype development. By using the model with its user
iii
interface provides guidance to agro-technology developers that the control of innovation
diffusion is above 95% confidence interval. However further work to improve the model
especially on time adjustment and other socioeconomic factors like human resource
requirement, fixed capital and R&D organisation rationalisation in Tanzania that has to be
done.
... There has been a main problem in involving stake holders in the process of technology development in the whole concept of technology use, spill over effect and industrial and business orbital infrastructure development (Ford et al., 2007, UK, 2013. On the other hand, the key player in technology development are thought to be engineers while others are left out (Etzkowitz, 2008). ...
Abstract
Design for Product Lifecycle
Design for product lifecycle has a broad meaning, in this paper the innovation diffusion was given a higher consideration for the perfection of products throughout product life cycle in design process. There has been great effort in Tanzania for the development technology (mostly prototypes) but in vain. Factor that are affecting the life cycle and the diffusion pattern are not well understood. The twin valley of technology death describes the technology development failures based on business vision disregard.
There has been a need of studying the deriving factors for technology innovation diffusion an thence mining these factors so that they are made as input to the a development of a model for Engineering Design Process. Structured interviews, questionnaires and observations in R&D organisation, staffs and stakeholders and activities were used to collect data from sources identified. Literatures on engineering design, technology development for diffusion and various models for innovation were studied. At the later stage the model was validated.
Factors that were included in the model are: relevance of needs identification, need identification, interpretation of variable into design specification, technology validation process, technology information generation and proper technology packaging and technology development stages importance. These factors were found to affect technology diffusion at a rate between 10 and 65%
It was noted that the development of technology for diffusion is more than the prototype development. The whole technology development cycle need be to consider for relevant technology development.
Design for innovation diffusion (Design for product life cycle)
... There has been a main problem in involving stake holders in the process of technology development in the whole concept of technology use, spill over effect and industrial and business orbital infrastructure development (Ford et al., 2007, UK, 2013. On the other hand, the key player in technology development are thought to be engineers while others are left out (Etzkowitz, 2008). ...
Abstract: Technology design lifecycle has anumber of aspects embedded on it, in this paper the stakeholder’s participation in
technology development has been made a focal point aspect for effective technology acceptance in the market. There has been great
effort in Tanzania for the development technology but with incomplete life cycle.Factor that are affecting the life cycle and the market
acceptance pattern are not well understood.Stage gate model for technology development seem to show a sign that this failure can have
a link with the stake holders’ participation. There has been a need of studying the relationship between stake holders’ participation in
technology development and technology life cycle perfection. Structured interviews, questionnaires and observations in R&D
organisation, staffs and stakeholders and activities were used to collect data from sources identified. Literatures on engineering design,
technology development life cycle and various models for innovation were studied.At the later stage, the model was developed and tested.
Factors that were included in the model was the participation of stake holder in processes such as need identification, technology
validation process, these factors were found to affect market acceptance. It was noted that the developers of technology are not just the
technologist but the whole team of stake holders for that particular technology. The stakeholders’ participation is vital for
effectivetechnology development.
Keywords: Innovation diffusion, Technology life cycle stakeholders
... Figure 3 illustrates the underlying challenge of capturing value for the breeding effort. The 'valley of death' that results from the low and delayed returns to investment applies generally to the research-to-product innovation pipeline (Beard et al., 2009) and certainly to most agricultural crop species. However, this schematic is particularly relevant to PBCs. ...
Genetic improvement through breeding is one of the key approaches to increasing biomass supply. This paper documents the breeding progress to date for four perennial biomass crops (PBCs) that have high output‐input energy ratios: namely Panicum virgatum (switchgrass), species of the genera Miscanthus (miscanthus), Salix (willow) and Populus (poplar). For each crop, we report on the size of germplasm collections, the efforts to date to phenotype and genotype the diversity available for breeding, and on the scale of breeding work as indicated by number of attempted deliberate crosses. We also report on the development of faster and more precise breeding using molecular breeding techniques. Poplar is the model tree for genetic studies and is furthest ahead in terms of biological knowledge and genetic resources. Linkage maps, transgenesis, and genome editing methods are now being used in commercially focused poplar breeding. These are in development in switchgrass, miscanthus and willow generating large genetic and phenotypic datasets requiring concomitant efforts in informatics to create summaries that can be accessed and used by practical breeders. Cultivars of switchgrass and miscanthus can be seed‐based synthetic populations, semi‐hybrids or clones. Willow and poplar cultivars are commercially deployed as clones. At local and regional level, the most advanced cultivars in each crop are at technology readiness levels which could be scaled to planting rates of thousands of hectares per year in about 5 years with existing commercial developers. Investment in further development of better cultivars is subject to current market failure and the long breeding cycles. We conclude that sustained public investment in breeding plays a key role in delivering future mass‐scale deployment of PBCs.
This article is protected by copyright. All rights reserved.
... The technology transfer is another key consideration of R&T projects. In order to minimize the difficulties of the critical stage between basic research and innovation (Ford, 2007), this phase needs to be clearly defined among the different stakeholders, which include the research team and the business units. Project managers need to be especially attentive to areas such as the amount of investments necessary to increase the TRL from 6-7 to 8 (which are often as big as the research and technology projects themselves) and the roles and responsibilities assigned to each "agent" in the process. ...
This chapter addresses several lessons learned during the research and development of an IVHM system. It explains how the introduction of a low- maturity IVHM system, and the steps of the R&T process, eventually resulted in the high-end technology now found in he AHEAD-PROT service offered by Embraer.
... Researchers, Innovators and Inventers often view the "funding-gap" as the critical limitation and have associated this to constitute the "Valley of Death" at a intermediate stage of the process between basic research/invention to commercialization of a new product/innovation. To the extent that the funding limitations prevail, a new innovation and/ or discovery may never be transformed into a commercial product and the implication will be a diminished return on funding for early stage research for development (Ford et al., 2007). This has implications for the "Research Economy" and "Commercial Economy" as presented in Figures 2 and 3. When the innovation induced growth (i.e., commercialization resources) in profits exceeds the initial R and D investment, there is growth in the innovation ecosystem (Jackson, n.d). ...
This article was inspired by a dialogue that transpired during the 5th All Africa Higher Education Week and Biennial Conference of the Regional Universities Forum for Capacity Building in Agriculture (RUFORUM), held in October 2016. The conference gathered over 850 participants from 72 countries and is usually a convening event that brings together several stakeholders in the two key sectors of Higher Education and Agriculture. The theme was "Linking Agricultural Universities with Civil Society, the Private Sector, Governments and other Stakeholders in support of Agricultural Development in Africa". From the seven plenary sessions and 49 parallel/side meetings a key concern that stringed through all the deliberations was that of the "valley of death" (also referred to as translational research) in relation to enhancing the usability of research outputs by translating knowledge to practice. It was apparent that the stakeholders in attendance was a good mix, in terms of the different walks of life, designation and vocation, for articulating the urgency of moving research outputs from bookshelves to application in the hands of end-users. The observation was that there is limited application of otherwise useful research-generated interventions to key challenges in Africa's agri-food systems. This Volume 14 (2) of The RUFORUM Working Document Series, (a peer-reviewed serialized publication, ISSN 1607-9345), features 147 articles accepted for publication mainly from university-based research and clearly if a fraction of the recommendations were put to use there would be less hunger and poverty in Africa than is currently the case. Apparently, there is not just one death valley but for any give technology and/or intervention to reach the end-user (s) there are many potential death-valleys between research and outcomes. In light of this, the convening considered a different conceptualization of knowledge translation (KT) as a dynamic and interactive process that includes synthesis, dissemination, exchange and ethically sound application of knowledge to improve uptake on interventions and thereby strengthen livelihoods. It is widely recognized that the process of KT takes place within a complex system of interactions between researchers and knowledge users which may vary in intensity, complexity and level of engagement depending on the nature of the research and the findings as well as the needs of the particular knowledge user. This Editorial provides selected actions among others that would help unlock the inertia from knowledge to practice, and enhance research-into-use practices in an innovation ecosystem. RUFORUM Working Document Series (ISSN 1607-9345) No. 14 (2): i-x. Available from http://repository.ruforum.org ii
... Bridging the gap between scientific understanding and practical implementation is critical, but it is also known as the "Valley of Death." This is because invention is often not translated to commercialization because public funding is limited for applied research (e.g., [436] ). To cross this valley, a compelling argument must be made at the research stage, especially by demonstrating the utility of the work in a manner significant to potential commercial adopters. ...
Porous metals have been under development for nearly a century, but commercial adoption remains limited. This development has followed two primary routes: liquid state or solid state processing. Liquid state foaming introduces porosity to a liquid or semi-solid metal, and solid state foaming introduces porosity to a metal, which is fully solid. Either method may create pores by internal gas pressure or introducing metal around a template directly control porosity. Process optimization and commercial output has been primarily related to liquid state methods, as solid state processing is often more complex, diverse, and with lower throughput. Solid state methods, however, are often more versatile and offer greater control of pore characteristics. Ongoing advancements in solid state foaming have allowed for a wide array of metals and alloys to be made porous and the three-dimensional structure to be precisely tailored. In general, solid state processing remains limited to niche applications, often with modest dimensions (cm scale). “Traditional” solid state processes are being further refined and extended, and continuing developments to reduce cost, increase output, and control pore characteristics are likely to produce important advancements in coming years. The extensive variability of pore quantity and morphology makes solid state processes suitable, and often preferable, for an assortment of functional and structural applications, with electrodes and biomedical devices being among the most popular in current research. Various techniques for introducing porosity, the way these methods are applied, important considerations, typical outcomes, and current applications are reviewed.
... The 'Valley of Death' literature identifies a funding gap during the stages in the innovation process beyond basic research to the formulation of a business plan for the commercialization of products and services (e.g. Auerswald and Branscomb, 2003;Beard et al., 2009;Frank et al., 1996;Wessner, 2005). Much of the extant theoretical literature on funding gaps focuses on credit markets and debt finance (De Meza and Webb, 1987;Stiglitz and Weiss, 1981), but more recent attention has also highlighted the gap in provision of equity finance (Cosh et al., 2009;Cressy, 2012;Cumming and Johan, 2013;Lopez de Silanes et al., 2015). ...
The equity gap, the difference between the amount of (risk) capital that would be invested under conditions of well-informed and competitive markets and the amount of capital actually invested, covers both startups and ventures moving beyond startup to the establishment and early growth phase. We provide estimates for the size of the equity gap for firms facing later stage financing issues, the second equity gap. This 'second' equity gap relates to a second so-called 'valley of death' in financing the growth phase, and is particularly pertinent for knowledge-intensive (KI) firms. We utilize a unique panel database covering the population of limited companies, which includes 2852 VC backed companies and 4048 deals. Using propensity scoring methods and multivariate models determining investment demand we screen the corporate population for potential VC investments and estimate the size of the equity gap in total and the KI firms that face, potentially, the second equity gap as a subset of our total estimates.
... ee e. g.:Final report of the High Level Expert…). Though, some authors claim that the valley of death occurs only in such innovation chains, in which governmental investments in the very early stages are made without paying sufficient attention to future investment decisions, thereby contributing to problems at intermediate stages of the process ( Beard et. al, 2009, p. 343i356). In other words, without non-economic activity in the beginning of the innovation process, that is when a free hand of the market decides, the valley of death shall not appear later. The concept refers to common problems associated with virtually every market intervention, as addressing diagnosed problems with certain publi ...
Nowoczesne organizacje funkcjonują w otoczeniu rynkowym, którego
uwarunkowania wywierają istotny wpływ na podejmowane decyzje biznesowe.
Chcąc opisać sposób oddziaływania otoczenia na organizacje, należy użyć
trzech podstawowych charakterystyk: zmienności i złożoności otoczenia, zakłó-
ceń otoczenia wynikających z sił mikro- i makrootoczenia oraz sił konkurencyjnych.
Aby zapewnić sobie prawidłowe funkcjonowanie i „biznesowe poruszanie
się” w otoczeniu, organizacja musi identyfikować, rozumieć i konfrontować się
ze współczesnymi wyzwaniami wobec zarządzania.
Ogniskują się one przede wszystkim w dwóch aspektach. Pierwszym jest
nowa konstrukcja współczesnych organizacji, w których powszechnie stosowany
jest outsourcing we wszystkich rodzajach, generacjach, obszarach, funkcjach.
Drugim aspektem jest powszechne wykorzystanie wirtualnej przestrzeni w
funkcjonowaniu przedsiębiorstw i organizacji. Internet spowodował poszerzenie
tradycyjnej przestrzeni rynkowej. Powstały nowe obszary, w których podmioty
gospodarcze mogą poszukiwać, udostępniać i wymieniać informacje, komunikować
się i zawierać transakcje.
Ogromnego znaczenia w funkcjonowaniu współczesnych organizacji, z
punktu widzenia właścicieli, menedżerów, pracobiorców interesariuszy organizacji
w otoczeniu bliższym i dalszym w środowisku realnym i cyfrowym) nabiera
holistyczne podejście do zarządzania oraz definiowanie funkcji organizacji na
nowo w systemie bazującym na chmurze (ang. cloud-based systems). Ewolucja
współczesnych przedsiębiorstw w organizacje w chmurze (ang. Cloud Organization)
odbywa się poprzez zastosowanie metod przetwarzania danych w chmurze
(ang. Cloud Computing), zarówno w relacjach wewnątrz organizacji, jak i w
relacjach z jej otoczeniem.
W prezentowanej publikacji autorzy kolejnych rozdziałów odnosili się do
przedstawionych powyżej aspektów, poruszając obszary tematyczne związane z
funkcjonowaniem zarówno podmiotów gospodarczych, jak i organizacji sektora
finansów publicznych oraz samorządów.
Wartością dodaną publikacji jest jej interdyscyplinarny wymiar, umożliwiający
przedstawienie wielu interesujących aspektów w obszarze współczesnych
wyzwań dla zarządzania biznesowego i publicznego. W swoich rozważaniach
autorzy uwzględnili zarówno środowisko realne, w tradycyjnym rozumieniu
przestrzeni prowadzenia działalności gospodarczej, jak i środowiska cyfrowego,
tworzącego przestrzeń wirtualną, umożliwiającą zastosowanie wspomnianych
już wcześniej koncepcji zarządzania bazujących na chmurze.
Prezentowana w opracowaniu tematyka ma również inny punkt styku, mianowicie
dążenie do rozwoju kapitału innowacyjnego, poprzez wsparcie m.in.
obszarów zarządzania kapitałem ludzkim, rozwojem produktu, rynkiem czy
technologią.
Wśród zaprezentowanych obszarów tematycznych jako wiodące można
wymienić następujące:
8
zarządzanie relacjami z klientami z wykorzystaniem różnorodnych narzędzi
marketingowych, ze szczególnych uwzględnieniem zaufania klienckiego
oraz oczekiwań w obszarze świadczonych usług,
innowacje produktowe i organizacyjne, jak również charakterystyka innowacji
społecznych jako nowy rodzaj innowacji i ich znaczenie dla funkcjonowania
organizacji w środowisku realnym i wirtualnym,
uwarunkowania oraz metody pomiaru działalności innowacyjnej przedsię-
biorstw sektora MŚP zarówno w środowisku realnym jak i cyfrowym,
zastosowywanie wybranych narzędzi kontrolingu finansowego w działalno-
ści przedsiębiorstw oraz podmiotów sektora publicznego,
inicjatywy klastrowe jako koncepcja rozwoju rynku usług turystycznych,
Przedstawione zagadnienia jedynie poglądowo obrazują szeroką tematykę
przedstawioną w opracowaniu, stanowiąc jego wizytówkę. Zaprezentowane
koncepcje, metody i narzędzia mają istotne znaczenie dla zarządzania efektywnością
procesów w organizacji w horyzoncie taktycznym i strategicznym oraz
wpływ na zarządzanie wartością organizacji.
Mamy nadzieję, iż prezentowana publikacja będzie zaproszeniem do dalszej
dyskusji w obszarze identyfikacji współczesnych wyzwań w zarządzaniu organizacjami
w środowisku realnym i cyfrowym.
... This would discourage early investment in the new technologies. Alternatively, government sub- sidies for alternative energy technology R&D could produce an overhang of "first stage" research projects as discussed by Beard et al. (2009). 3 ...
It is often claimed that a difficulty of raising investment funds prevents promising new energy technologies from attaining commercial viability. We examine this issue using a dynamic intertemporal model of the displacement of fossil fuel energy technologies by non-fossil alternatives. Our model highlights the fact that since capital used to produce energy services from fossil fuels is a sunk cost, it will continue to be used so long as the price of energy covers merely short-run operating costs. Until fossil fuels are abandoned, the price of energy is insufficient to cover even the operating costs of renewable energy production, let alone provide a competitive return on the capital employed. The full long-run costs of renewable energy production are not covered until some time after fossil fuels are abandoned.
... We chose to do the region-IPC cross-classification at this level of the IPC hierarchy to limit small numbers of observations. R&D data was additionally divided into government-and private R&D, as government funded R&D was posited to have a weaker link to commercialized innovations compared to private R&D (see Beard et al. 2009). ...
The Paris Climate Agreement, signed by over 190 countries at COP21 of the UNFCCC in 2015, set a unique precedent in the global fight against climate change. The signing parties agreed to limit global warming well below 2 °C, aiming for 1.5 °C, which poses a herculean task for the international community. Studies have shown that this target could only be achieved through drastic cuts in global greenhouse gas emissions and large-scale removal of excess carbon dioxide from the atmosphere. In this context, this chapter highlights the latest developments in the science and technology of carbon capture and storage techniques, including land-based and ocean-based techniques, bio-energy with carbon capture and storage (BECCS), and direct air capture (DAC), which would be critical in our efforts to mitigate climate change. The chapter also discusses the technological, financial, ethical, and socio-political challenges and limitations that would need to be addressed for large-scale deployment of carbon capture and storage technologies. As global carbon emissions continue to rise unabated, the need for carbon dioxide removal technologies will grow simultaneously. More research and development is needed to solve the outstanding problems and make these technologies safe, sustainable, and economically feasible for large-scale deployment.
The United States is struggling to move innovative energy technologies from discovery to scale. This gap could put the climate and U.S. investments at risk. A nonprofit foundation working with the Department of Energy could help fill the gap. KEY TAKEAWAYS ▪ ITIF urges Congress to authorize an Energy Technology Commercialization Foundation (ETCF) that would work closely with the Department of Energy and support organizations and entrepreneurs to bring clean energy technologies to market. ▪ There is an urgent need for such a foundation, because the United States, in spite of its scientific prowess, is not making rapid enough progress toward solving the diverse and difficult decarbonization challenges it faces. ▪ ETCF would facilitate energy innovators' access to DOE's technical expertise and world-class facilities, encourage researchers to seek commercial applications for their discoveries, and foster public-private collaboration. ▪ ETCF would draw on precedents set by the diverse array of agency-related foundations that Congress has established over the past 50 years.
Working Paper 31, The final leg: How Ontario can win the innovation race, explores how Ontario’s innovation performance could be boosted by improving commercialization of research and inventions in the province. The Institute examines best practices in commercialization support from the German Fraunhofer Society, which has successfully bridged the gap between early research and large-scale production known as the ‘innovation valley of death’.
The Fraunhofer Society, a network of 69 applied research institutes across Germany, is widely regarded as one of the most successful networks of technology and innovation centres (TICs) in the world. Founded in 1949, the Fraunhofer institutes perform technical and commercialization research on contract to public and private sector clients and develop university and self-generated research into marketable products and processes.
The Institute’s research suggests that Ontario could improve its poor record of commercializing its own research and boost technology adoption by Ontario businesses by creating a network of TICs to bridge gaps in the innovation process.
The relentless blossoming of technologies in a select group of advanced countries is changing production and services models designed in the past century. Some breakthrough advances have the potential to disrupt entire industries, services, and alter the way people work, consume and live. Digitization, extreme connectivity and automation are remaking competitive standards, impacting advanced and emerging economies and societies. Countries like Brazil are challenged to seize the opportunities offered by this new cycle.
The relentless blossoming of technologies in a select group of
advanced countries is changing production and services models designed in the past century. Some breakthrough advances
have the potential to disrupt entire industries, services, and alter the way people work, consume and live. Digitization,
extreme connectivity and automation are remaking competitive standards, impacting advanced and emerging economies
and societies. Countries like Brazil are challenged to seize the opportunities offered by this new cycle.
A expansão acelerada de tecnologias disruptivas nos países avançados questiona os modelos de produção e serviços construídos pela indústria do século xx, gera mudanças no com-portamento nos mercados consumidores e aponta para mudanças econômicas e sociais profundas. A digitalização, conec-tividade e automação acelerada desarticulam indústrias e alteram os padrões de competitividade. Para o Brasil, a diferença entre ser competitivo e permanecer no atraso depende da capacidade de aproveitar as oportunidades abertas pelo ciclo atual. PALAVRAS-CHAVE: manufatura avançada; indústria 4.0; inovação tecnológica. ABSTRACT The relentless blossoming of technologies in a select group of advanced countries is changing production and services models designed in the past century. Some breakthrough advances have the potential to disrupt entire industries, services, and alter the way people work, consume and live. Digitization, extreme connectivity and automation are remaking competitive standards, impacting advanced and emerging economies and societies. Countries like Brazil are challenged to seize the opportunities offered by this new cycle. O declínio da indústria tem sido alvo de intenso debate em todo o mundo. É certo que desponta com maior gravidade entre os emergentes, mas se manifesta também entre países desenvolvidos. Diante das alterações de qualidade que marcam a competição global, perdem força as explicações duais que apontam o declínio industrial como resultante do crescimento dos serviços. As fronteiras entre esses
This paper analyzes the relationship between banks’ divergent strategies toward specialization and diversification of financial activities and their ability to withstand a banking sector crash. We first generate market-based measures of banks’ systemic risk exposures using extreme value analysis. Systemic banking risk is measured as the tail beta, which equals the probability of a sharp decline in a bank’s stock price conditional on a crash in a banking index. Subsequently, the impact of (the correlation between) interest income and the components of non-interest income on this risk measure is assessed. The heterogeneity in extreme bank risk is attributed to differences in the scope of non-traditional banking activities: non-interest generating activities increase banks’ tail beta. In addition, smaller banks and better-capitalized banks are better able to withstand extremely adverse conditions. These relationships are stronger during turbulent times compared to normal economic conditions. Overall, diversifying financial activities under one umbrella institution does not improve banking system stability, which may explain why financial conglomerates trade at a discount.
The mark of a capitalistic society is that resources are owned and allocated by such nongovernmental organizations as firms, households, and markets. Resource owners increase productivity through cooperative specialization and this leads to the demand for economic organizations which facilitate cooperation. When a lumber mill employs a cabinetmaker, cooperation between specialists is achieved within a firm, and when a cabinetmaker purchases wood from a lumberman, the cooperation takes place across markets (or between firms). Two important problems face a theory of economic organization – to explain the conditions that determine whether the gains from specialization and cooperative production can better be obtained within an organization like the firm, or across markets, and to explain the structure of the organization. It is common to see the firm characterized by the power to settle issues by fiat, by authority, or by disciplinary action superior to that available in the conventional market. This is delusion. The firm does not own all its inputs. It has no power of fiat, no authority, no disciplinary action any different in the slightest degree from ordinary market contracting between any two people. I can “punish” you only by withholding future business or by seeking redress in the courts for any failure to honor our exchange agreement. That is exactly all that any employer can do. He can fire or sue, just as I can fire my grocer by stopping purchases from him or sue him for delivering faulty products.
The current fad of corporate managements, taking short-term views and distributing R&D assets to operating divisions, is like a farm investor who is interested only in harvesting and will not invest in planting, cultivating or irrigating; neither is likely to get much good harvest for very long. Applications R&D depends on using the interconnectedness of many kinds of knowledge, and thus depends on the close interaction of research people with that knowledge. The destruction of these key connections, together with the fact that the customer for R&D is always wrong about the requirements, will ensure future trouble.
The development of advanced technology program (ATP) and the small business innovation research program (SBIR), programs which provide awards to enhance innovations in US, is discussed. ATP is designed to allocate the federal government's positive contribution to early-stage technology development. ATP provide funds for the development of generic technologies which are risky for individual firms. ATP and SBIR provide facilities to record US' expertise in universities, and government research laboratories to contribute new ideas and cost effective solution for security needs.
This article describes the process by which two industries—the environmental and pharmaceutical—survive the funding gap in new technology development known as the “valley of death”. The article (1) defines the valley of death, including a brief description of the causes; (2) describes private financial resources that the pharmaceutical industry has used successfully, such as internal corporate reinvestment in research and development and external venture capital funds, but which the environmental industry has yet to adequately cultivate; (3) describes potential public financial vehicles that can be used by both the pharmaceutical and environmental industries to fund development and demonstration; and (4) offers an analysis and makes recommendations for government technology policy makers interested in learning about environmental protection through the successful commercialization practices of government/industry partnerships.
Examines varyinglevels of funding by U.S.companies for early-stage technology development (ESTD), across industries andfirms. For purposes of this study, ESTD is defined as the early development offundamentally new products or processes that lie outside of, or might be inconflict with, the firm's current technology strategy or that deploy currenttechnology outside of the firm's current core businesses. Data were collected through 39 interviews with R&D executives from eightventure capital firms and 31 large corporations across eight industry sectorsfrom July 2001 to January 2002. Results indicate that, despite recognition thatESTD investments are critical to long-term growth, these investments are not acorporate priority. Approximately 7.3% of corporate R&D budgets aredirected toward ESTD activities. Of the industries considered in this analysis,the chemical industry invested the highest proportion (33%) of their R&Dbudgets in ESTD. Companies have developed several strategies for maintaining access to newtechnologies while minimizing cost. Such strategiesinclude alliances,acquisitions, and outsourcing. The variation across firms for ESTD funding canbe attributed to the increased sophistication required to develop newtechnologies and mounting pressure on R&D divisions to demonstratefinancial value from R&D investments. (SRD)
This analysis presents the questions, responses, andconclusions of a survey examining the relationship between angel investors andvesture capital firms. A two-part survey containing twelve questions for angelinvestors and nine questions for venture capitalists was conducted by e-mail inFebruary and May 2005. Of 2,156 surveys, the response rate was approximately 14percent. Reported are both quantitative results and written comments. The results show that angels and venture capitalists both play key roles inthe venture industry. Angel investors and venture capitalists do not competebut are viewed as complementary players. Angels rarely fund a company to exit,so firms need institutional money for that purpose, whereas venture capitalistsrarely provide needed seed capital and time during the early stages ofdevelopment. Angels are seen as the early-stage "seed" investors who"feed" deals to the venture capitalists. Thus, there is a "conveyorbelt" effect that takes startups from creation to ongoing existence andexit. Among other findings: venture capitalists believe that angel fundersneed to better understand valuation of investment opportunities, andappropriate deal structures that will not impede further VC funding. Theventure industry and the business community would benefit from an angel-venturecapitalist framework that fosters better understanding and amoreefficient working relationship between the two. (TNM)
The Theory of Industrial Organization is the first primary text to treat the new industrial organization at the advanced-undergraduate and graduate level. Rigorously analytical and filled with exercises coded to indicate level of difficulty, it provides a unified and modern treatment of the field with accessible models that are simplified to highlight robust economic ideas while working at an intuitive level. To aid students at different levels, each chapter is divided into a main text and supplementary section containing more advanced material. Each chapter opens with elementary models and builds on this base to incorporate current research in a coherent synthesis. Tirole begins with a background discussion of the theory of the firm. In part I he develops the modern theory of monopoly, addressing single product and multi product pricing, static and intertemporal price discrimination, quality choice, reputation, and vertical restraints. In part II, Tirole takes up strategic interaction between firms, starting with a novel treatment of the Bertrand-Cournot interdependent pricing problem. He studies how capacity constraints, repeated interaction, product positioning, advertising, and asymmetric information affect competition or tacit collusion. He then develops topics having to do with long term competition, including barriers to entry, contestability, exit, and research and development. He concludes with a "game theory user's manual" and a section of review exercises.
The market for angel capital – where individuals provide risk capital directly to small, private, often start-up firms – operates in almost total obscurity. Very little is known about the market's size, scope, the type of firms that raise angel capital, and the types of individuals that provide it. In this paper I present evidence on the angel market gathered from my field research which has involved interviews with more than a dozen angel investors in the Dallas/Fort Worth area. The angel market appears to be a very heterogeneous and localized market. With that qualification in mind, I present some common characteristics of the angels I interviewed, and how they select and monitor their investments. I pay particular attention to how they address adverse selection and moral hazard problems. I compare their behavior with venture capital limited partnerships in the more formal market for venture capital.
Whitby R. H. (1971) Technical progress in aviation, Reg. Studies 5, 117--120. Possible variation in estimated future air travel is discussed. Allowing for a progressive increase in aircraft size it is suggested that air movements in Great Britain may never grow to more than 80 per cent above present day levels. Bigger aircraft will not demand bigger airfields. Newly introduced aircraft are quieter despite greater size and this trend will continue with succeeding generations. Allowing for increased movement rate, the overall noise nuisance is now near its peak and should decline after 1975. Improved surface travel will lead to the development of aircraft more accessible to the public. Although VTOL is attractive, STOL aircraft could offer almost as much improved accessibility as VTOL and be less complex.
The authors examine a firm able to adopt an innovation of uncertain profitability; reject the innovation; or delay deciding in order to acquire information on profitability. Deriving the optim al strategy from established sequential sampling literature, the authors constru ct a theory of the diffusion of innovation. Firms are assumed to hold identical prior expectations of an innovation's profitability, and to conduct privately ob served experiments on its profitability. The naturally arising distribution of e xperimental results yields a distribution of adoption times exhibiting establish ed facts on innovation diffusion. Finally the authors examine the implications o f strategic interactions between firms, where this affects both the learning pro cess and the results of adoption. Copyright 1986 by Royal Economic Society.
The basic science and technology research enterprise of the United States--sources of funding, performing institutions, researcher incentives and motivations--is reasonably well understood by academics and policy makers alike. Similarly corporate motivations, governance, finance, strategy, and competitive advantage have been much studied and are relatively well understood. But the process by which a technical idea of possible commercial value is converted into one or more commercially successful products--the transition from invention to innovation--is highly complex, poorly documented, and little studied. In this paper we discuss the process by which basic research is converted into successful commercial innovations. Following Arrow (1962) and Zeckhauser (1996), we explore the hypothesis that asymmetries of information and motivation, as well as institutional "gaps," may systematically deter private investment into early stage technology development. We describe the role of governments--federal and state (or provincial)--in promoting the commercial transition from an invention to an innovation. We conclude by suggesting some lessons that may be learned from the experience of the Advanced Technology Program (ATP) of the United States Department of Commerce, among the few Federal programs specifically intended to meet this need. Copyright 2003 by Kluwer Academic Publishers
The principal-agent literature is concerned with how one individual, the principal (say an employer), can design a compensation system (a contract) which motivates another individual, his agent (say the employee), to act in the principal’s interests. The term principal-agent problem is due to Ross (1973). Other early contributions to this literature include Mirrlees (1974, 1976) and Stiglitz 1974, 1975).
The venture capital industry experienced its biggest decline ever in 2001. The National Venture Capital Association reports that, in the fourth quarter of 2001, investments by venture capital firms were at approximately a third of the level the year before and the amount of money raised by these firms had dropped 80 percent. Many people question whether this trend signals the eventual demise of venture capital. ; However, according to the authors of this article, it is important to put these numbers in perspective. In terms of total dollars invested, 2001 ranks as the venture capital industry's third-best year, and the developments of 2001 are simply an anomaly in an otherwise exceptional growth curve. The article examines the significance of this difference between short- and long-term performance. ; Using the findings from the Stanford Project on Emerging Companies, an interdisciplinary research project that analyzed 170 technology start-up firms, the authors discuss the effects of venture capital on both the market position of the start-up and on internal operational issues. Their research supports the conclusion that venture capitalists provide value-added services that enhance the value of their portfolio companies. The article concludes with some thoughts on the evolution of the venture capital industry in the nineties.
Research and development at the nanoscale requires a large degree of integration, from convergence of research disciplines in new fields of enquiry to new linkages between start-ups, regional actors and research facilities. Based on the analysis of two clusters in nanotechnologies (MESA+ (Twente) and other centres in The Netherlands and Minatec in Grenoble in France), the paper discusses the phenomenon of technological agglomeration: co-located scientific and technological fields associated to coordinated technology platforms to some extent actively shaped by institutional entrepreneurs. Such co-location and coordination are probably a prerequisite for the emergence of strong nanoclusters
Over the past decade, a number of researchers have extended conventional models of business fixed investment to incorporate a role for "financial constraints" in determining investment. This paper reviews developments and challenges in this empirical research, and uses advances in models of information and incentive problems to motivate those developments and challenges. First, I describe analytical underpinnings of models of capital-market imperfections in the investment process, and illustrate the principal testable implications of those models. Second, I motivate tests and describe and critique existing empirical studies. Third, the review considers applications of the underlying models to a range of investment activities, including inventory investment, R&D, employment demand, pricing by imperfectly competitive firms, business formation and survival, and risk management. Fourth, I discuss implications of this research program for analysis of effects of investment of monetary policy and tax policy. Finally, I examine some potentially fruitful avenues for future research.
American producers of textile machinery have lagged behind non-American producers in developing technology in the postwar period. By tracing production patterns for 22 major textile machinery innovations, the influence of the production lag on diffusion among American textile-processing mills is explored. The principal finding is that the level of adoption of textile machinery innovations by American mills following the commercial introduction of these innovations anywhere in the world is independent of the magnitude of production lags in the American machinery industry. -from Author
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