Course content
While basic competitive concepts can explain why some firms are more profitable than others in the short term, the concept of innovation (and the managerial decisions behind it) is a key driver of long-term competitive advantage. In high-tech markets in particular, innovation management is the chief explanation behind the rise and fall of every enterprise, from the decline of Polaroid during the digital camera revolution to the birth and rise of Biogen as the biotechnology revolution unfolds. If taking center stage in high-tech markets was not enough, innovation management is becoming essential to understand competitive changes in traditional markets: the shift from books to easy-to-use electronic tablets as a result of the digital revolution; the shift from simple crayons to erasable, mess-free children’s markers as a result of advances in chemistry; and the shift from regular fabric to wrinkle-, stain-proof alternatives as a result of nanotechnology. Even a broadly used service like advertising has faced dramatic revenue model changes as a result of the Internet revolution.
This course introduces fundamental concepts in innovation management, from documented patterns on how industries face waves of technological change, to the distinctive preferences of people involved in the research and development of high-tech innovation. The main objective of the course is to link these concepts to the assessment of managerial decisions (and sometimes policy implications). Emphasis will be given to the critical discussion of evidence behind the concepts covered. Illustrations of the applicability of concepts to management in non-high-tech markets will be offered whenever feasible.
The course is divided into four broad areas:
Industrial Patterns of Innovation
-
What are the known dynamics of technology life cycles?
-
What are the known steps in the process through which a market changes technologies in research and development?
-
How do agglomeration economies support innovation?
Innovation and its Effect on the Competitiveness of Firms
-
What is radical innovation? What is its effect on firm competitiveness?
-
How are radical and disruptive innovations different? How does that matter for competitive purposes?
-
How can innovation alter the set of customers targeted by a firm?
The Internal Operation of Innovative Firms
-
How can a firm organize to maximize both efficiency in the present and innovativeness in the future?
-
What steps can firms take to support the creativity of their employees?
The Unique Preferences of Scientists and Entrepreneurs
-
Is there anything distinctive about the preferences of high-tech scientists?
-
Is there anything distinctive about the preferences of entrepreneurs?
Course outcomes
At the end of the course, students should be able to:
-
Recognize the distinctive dynamics of high-tech markets
-
Evaluate the potential for added competitiveness of innovations considered by a given firm
-
Evaluate recommendations to improve the long-term innovative ability of firms
-
Examine the particular preferences of scientists and entrepreneurs in high tech settings and evaluate the managerial and policy implications of those preferences
World-class LSE teaching
The Department of Management was established in 2000, and is committed to advancing the frontiers of the study of management, through its social-science based research, collaboration across the entire LSE, and its engagement with enterprises, organisations, and leaders throughout the world. The 2014 Research Excellence Framework has ranked LSE as the UK higher education leader for Business and Management Studies.
On this three week intensive programme, you will engage with and learn from full-time lecturers from the LSE.
Texts
There is no set text for this course. Students will be given a set of photocopied materials, and will additionally be expected to make use of reading materials available electronically in the Library.
*Course content, faculty and dates may be subject to change without prior notice