You are on page 1of 177

Tokyo University of Agriculture and Technology

Innovation and Leadership

November 25, 2016

Masanori NAMABA
Self introduction
1964:Kobe University (Business)
1974:University of Southern California,
USA (MBA)
2002: Finished Doctor course at Tokyo
University( Major: Management of
Technology)
Working experiences
Worked in industry for 36 years.
APU (Ritsumeikan Asia Pacific
University)
2002 to 2011 as professor
2006-2008 Dean of AMP & BMA
Course,
2012-now: Professor Emeritus,
Visiting professor
Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Major Established
Companies (Primary
Economy)
National
Micro, Small, & Economic
Medium Companies Growth
(Secondary Economy)

New Companies

Innovation
Major Established
Companies (Primary
Economy)
National
Micro, Small, & Economic
Medium Companies Growth
(Secondary Economy)

New Companies
Mori
Innovation Ironworks
Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Two Walls in Innovation

New Ideas Market Acceptance,


(Technology, Concept) Competitors
Two Walls in Innovation

Value Capture
Value Creation

New Ideas Market, Competitors


Appropriability of
Innovation
Keep your innovation value long time
for the continuous innovation
Innovation Types and Role of Entrepreneur
Conception Ability
Technology driven Market Pull
Innovation Entrepreneur Innovation

New Market
Knowledge Needs
Science / Technology Visible needs/
Invisible needs
Commercialization

Profitability
Sustainability

Continuous Innovation
Innovation based on new knowledge
Three barriers in Innovation

Re Develop Commerci New


alization Industry
search ment

Devil Death Darwinian


River Valley Sea
T h e V a lle y o f D e a t h
[A fte r C o n g r e s s m a n V e r n E h le r s ]

ATP?
B a s ic R e s e a r c h , S B IR ?
I n v e n tio n

I n n o v a t io n

V a lle y o f D e a tth
h

Lewis M. Branscomb
Harvard University
June 14, 2001 Testimony before Hearing of the Technology Subcommittee of the House Science
Committee on the Advanced Technology Program at NIST/DOC.
LMB 7/3/01
The Darwinian Sea
The Struggle of Inventions to
Become Innovations

Research &
Research & Innovation &
Innovation: new
Invention
Invention new business
business

Struggle for Lifein a Sea of Technical and Entrepreneurship Risks


Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Management of Technology

What is Innovation?
Acts that bring new value to society
It creates new significance social
value from new ideas through
organizational activities and
leadership and brings about socially
significant changes.
You should understand the features of innovation
and organization for attaining innovation.
Field of the innovation

Not limited to technologies


Exists in firms, education, art,
politics, sports, etc.

Everybody'sbusiness
Management of Technology

Invention and Innovation


Invention: something new
and workable,

Innovation: .Social impact


(mass production)
(Fashion/prevailing)
Why is innovation so important?

New companies
New businesses
New industries
New employment
Affluent life
Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Classification of innovation
Low
Product Innovation Matrix

Incremental Technical
Innovation
Value added

Innovation

Application Radical
Innovation Innovation
High

Low Technical innovativeness High


SourceD.H. Gobeli and D. J. Brown, Analyzing Product Innovation, Research Management, Vol. 30, No. 4 1987, pp. 25-31.
Innovation Type
Newness of technology

Low High

V
a (1)Incremental 3)Technical
L Innovation
l Innovation
u Lens cleaner
e
a (2)Application 4Radical
H
d Innovation Innovation
d
Film with lens TV, VCR, DSC, iPhone
Example of Application Innovation
Film with lens
1987 today
Example of Technical Innovation
Structure artificial fiber
Fiber in fiber
Fiber

Toray Co.

Micro-fiber
Developed in 1970
Micro-fiber
Original target: artificial fiber for shoes:
low value

Lenz cleaner: Still low value


Kind of Failure

Changed target to fashion cloth


material
Technical Innovation can be
changed to Radical Innovation

Lenz Cleaner made by Toray


26
Technical Innovation to Radical Innovation
Artificial leather
ECSAINE Paris Collection in 1970

TIME : The most remarkable material of


clothes since a leaf of fig of Adam and Eve.
Today
27
100 Billion yen profit during 1970 to 1980
Innovation Type
Newness of technology
Low High
V
a
l L (1)Incremental 3)Technical
u Innovation Innovation
e Lens cleaner
a
d H (2)Application 4Radical
d Innovation Innovation
Film with lens TV, DSC, iPod, iPhone
Definition of Radical Innovation
High value added + innovative technology (Gobeli
and D. J. Brown)

Radical innovation will successfully generates


economic value for a firm for long time.

Good solution to environmental and social


sustainability.
Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Schumpeter, J.A.
Joseph Alois Schumpeter, (1883 1950)

The Theory of Economic


Development, 1912
Father of Innovation Theory

Innovation is a new combination of


existing things.

It will bring about Creative Destruction.


Innovation Process
A New Product, New Technology

C
New Product
B
D
Existing
technology
M
Innovation ProcessExample
Telephone Technology
Computer
A iPhone
Mobile
B
Wireless Technology)
Mobile
C with DSC
Photo Technology Digital
Camera
D
Semiconductor Technology)
How Radical Innovation is created?

Steve Jobs
Visionary: Concept creator

Practitioner

Jonathan Paul Ive


Juke Box:1000
Music Inside

Napster

Walkman 1998,
Download
from Internet

iPod 2001 Concept


Creation
1000 music
songs in your
Make different
pocket tool
Copy Right Namba Masanori
iPod
Identifying the weak points of existing product (MP3, Napster)

Downloading is unstable All the


Sound quality is bad problems
There is not preview function should be
illegal copy solved at once.
Handling is very complicated
(Change of the product basics concept )
1,000 music in a pocket
It is downloaded automatically through internet.
Complicated "machine" becomes a " tool
Elegant product design
Juke Box:1000
Music Inside

Napster

Walkman 1998,
Download
from Internet

iPod 2001 Concept


Creation
Nesting
Innovation
Copy Right Namba Masanori
Double Concept of
Nesting iPhone
Innovation
iOS is key technology
New Dimension

Copy Right Namba Masanori


One of the style of a Radical Innovation
Creation of new value by shifting one dimension up
Synergy effects
Fused technology New Dimension

Existing Technologies, Products, service +


some new technologies

It can be called Nesting Innovation


Apple, Revenue, Net Profit
$ billion
$ billion

billion

Revenue
Net
profit

iPod

Schumpeter, J.A.
Joseph Alois Schumpeter, (1883 1950)

The Theory of Economic


Development, 1912
Father of Innovation Theory

Innovation is a new combination of


existing things.

It will bring about Creative Destruction.


Entrepreneur and Innovation
Three difficulties for creative
destruction.
Creative Destruction
The driving force of the
Three difficulties for entrepreneur to promote
creative destruction radical innovation
1. A rule for decision 1. "Willingness to
changes. build a personal
2. Criticism and empire"
opposition to
transition to the 2. "Winner
new orbit. motivation".
3. Resistance from the 3. Joy of creation"
social environment.
Creative Destruction
Entrepreneur creates innovation,
creative destruction.
The act of a newly created thing
destroying its predecessors.

Then how is it destroyed?


Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
S-Shape Curve
Richard Foster found
Life cycle of technology:
S-Shape curve
Discontinuity of technology
New technology starts in
lower capability than existing
one
Entrepreneur needs get an insight
into the new technology
S Shape Curve
Technology Effects on Technology Life Cycle
Area III: Base Technology

Key Technology
Area II
Pacing Technology

Area I : Emerging Technology

Time/Accumulated Investment (Foster)


S Shape Curve
on Technology Life Cycle
Technology Effects

Area III: Base Technology


PC, Auto, Steel, Shipbuilding

IT Key Technology
Area II
Bio Pacing Technology
Nano
Area I : Emerging Technology

Time/Accumulated Investment (R. Foster)


Shifting and developing
of the S-curve
Performance

Discontinuous Innovation
Digital Camera

Creative
Destruction)

Film Camera
Time
Creative Destruction)
World wide demand for film camera YR 2000=100

Peak time

Less than
/

Source: Sigetaka Komori Tamashii no Keiei=Management by Soul, 2013


Magic is
Exponential Pixels in compact digital camera
development
20 Million pixels 250K Pixels)
15
10
CASIO OV-10
1994
5

Source: Casio
Revenue comparison between Kodak and Fuji Film
(100
million
Yen)
Fuji Film Upward
Current
Share in USA :

90%,
Employees:
Sigetaka Komori
Revenue

145,000
Bankruptcy
in 2012, Employees:
15,000

Kodak

Source: Takashi Yunokami, Kodak and Fuji Film, Electronic Journal, June 201s.
Revenue comparison between Kodak and Fuji Film
(100
million
Yen)
Fuji Film

Share in USA :

90%,
Employees:
Revenue

145,000
Bankruptcy
in 2012, Employees:
15,000

Kodak

Source: Takashi Yunokami, Kodak and Fuji Film, Electronic Journal, June 201s.
Fuji Film Leadership of Sigetaka Komori, Chairman
Change of Breakdown of Sales

2000

2007



Digital
Camera
Digital
Camera

Photo related Photo related



Products
Products


Graphics
Graphics

Systems

Systems

Medical Medical

Science

Science
FPD
FPD FPD
FPD

Other Industrial
Other Industrial

Machinery and Machinery and
Materials Materials
Film related : 55% Film related : 35%
Around 1990s everybody felt that
digital camera would replace
chemical film.
However, we did not understand the
speed and timing.
The decrease of demand for
chemical film suddenly came after
2000.
In addition to building a new growth
Mr. Sigetaka strategy, we were forced to reduce
KOMORI, Chairman,
the number of staff at 5,000 people
Fuji Film
each time in 2005 and 2009.

It is the role of leader to decide the


severe selection and take action.
There is no concept of
Mature Industry
Charan and Tichy(1998)
If a leader of a company can transcend
the traditional view of his own industry,
he can make his company grow in any
"mature" industry.

Growth is a mindset created by a


companys leadership.
Charan, R. and Tichy N. M.
Every Business Is a Growth Business
Trajectory Path to the Next Curve

Future curve
Growth

Stabilizing
Replication and
improving

Dying
Starting

Time
Shifting and developing
of the S-curve
Performance
Creative
Destruction iPhone

Digital Camera

Film Camera
Time
Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Innovation is very difficult, why?

Self-denial (Kodak)

Complexity (iPhone)

Uncertainty
Uncertainty
Technology
Market
Organization
Resources
Competition
Uncertainty of Technology
No guarantee for solving
unknown factors
Success rate of new pharmacy :
1/1000
Acceleration of technology
change (product obsolescence)
Uncertainty
Technology
Market
Organization
Resources
Competition
Market
Should be accepted by
customers & society
Diversification of customer
value
Fierce competition.
Acceptance by society
RogersInnovation Diffusion Theory

# Newly Early
adopt Majority
Late majority
Early
Adopter Laggard
Innovator

Time
Revised Technology Adoption Life cycle

Chasm Theory

Early Adaptors
Early Majority Late Majority
Innovators
Laggards

Chasm Compelling reasons to buy: Whole product)


Uncertainty
Technology Which factors are
fatal to radical
Market innovation?
A research project by
Organization IRI (Industrial
Research Institute).

Resources Executed by
Rensselaer
Polytechnic Institute,
Competition USA.
Four Uncertainties of Radical Innovation
After survey of 12 radical innovations in USA.

(1)Technology
(2)Market
(3)OrganizationStrategy, Policy, Alternation of CEO)
(4)Resource (Total resources, Allocation to a project)

Immobilization by
Controllable the internal system
SourceLeifer et al., Radical Innovation, 2001

Passion should be fixed.


Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Innovation Management
contributes to Appropriability of
National Economic
Growth at three major Innovation
places
Where has Google come
Two walls of from?
Innovation
What is conception ability?
What is innovation
Two Types of Innovation
Product Innovation 3 Innovation
Matrix I

Innovation Process Trickle Up method


by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
How can we overcome uncertainty?

Technology
Market Needs
Organization comprehensive way
Resources

One of the ways is : phase review


Gradually squeezing success
project from many ideas through
phase reviewing.
Phase review method

Project
Funnel process

Idea Concept NPD Biz Development


Philosophy
Many ideas will bring success by
step by step evaluation.

But this random approach is inefficient


and may lead waste of time and
resources.
Then, create new product development
method.
Prof. Cooper

Stage- gate method


A Stage-Gate System is a phase review
method for moving a new-product project
from idea to launch.
Start from a simple idea by one person
Obtain resources step by step
Evaluate after seeing actions
Clear objects at each step, target is clear
Go, NO GO are definitely decided.
R. Cooper
Typical Stage-Gate Model

Stage Stage Stage Stage Stage


Search Theme Bench Pilot Busine
Human ss
Idea Team up Resource)

Evaluate for Go/No Go depend s on Study target and


Transparent Criteria
More than 60 % USA manufacturing companies use this methods.
Merits for Stage-gate Method
Everybody can propose new idea for innovation:
gathering many ideas for innovation.
If the first gate is cleared, company will provide
him resources required for next gates (budget and
persons).
Careful feasibility study will lead to success.
It starts small scale and expand scale if it is
feasible.
If not feasible, it can be stopped without serious
loss.
Weak Points of Stage- gate Method

Idea for incremental innovation will


be easily chosen and passed
through gates.
Ideas for radical innovation will be
difficult to be selected.
Because ?
Enrichment of Stage-gate
AlliedSignals Front-End Innovation Model
Technology
Market Place Needs
Idea Breakthrough

Generation
Front End Invasion Core Process

Target Selection High impact Manage idea Define Frame


research portfolio technology strategic
options opportunity

Project &
Business
Commercial Development
Plan
(Concurrent Engineering Core
(Stage Gate)
Process) Satisfied Customers
Product/
Process
development

Commercial
Scale up

Parallel development of Incremental Innovation and Radical Innovation


s Horizon Management

Horizon 3

Horizon 2

Horizon 1

Phase1 2 Phase3

Source

The Closed paradigm for Managing Industrial R&D

Source:Chesbrough,2002

Boundary of the firm

Research
Project
Current Market

Source: Chesbrough, 2002


Open Innovation
Jungle Rule Game in a Silicon Valley
Company
New product concept contest for new product
devlopemnt in a year.
40 engineers propose in front of board members.
Limited budget only for top 15 persons.
Engineers who lost in the game must find their boss
(sometimes a senior engineer ask a junior engineer) or
quit the company.
Long term development is executed by another way
(skank work).
Engineers are very active to find themes for next year
(seems to enjoy this game).
Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Innovation Management
contributes to Appropriability of
National Economic
Growth at three major Innovation
places
Where has Google come
Two walls of from?
Innovation
What is conception ability?
What is innovation
Two Types of Innovation
Product Innovation 3 Innovation
Matrix I

Innovation Process Trickle Up method


by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Stages of Innovation
Management Principle in each step

Concept Develop Commerciali


ment zation
New Customer Resources High Quality
Value
Technology Cost down
Strategy Development
Customer
Creativity Efficiency Satisfaction
Type of Innovation Concurrent Competitiveness
Reduce uncertainty Quick job Appropriability
of Innovation
To be considered at this stage
Appropriability of Innovation

Ability of the company to capture


profit from the innovation which
was created by the company.

Goto, Nagata
Changes share (shipments) by countries in the liquid crystal display panel production

%
100
90 JP
80 Korea
70 Taiwan
60
50
40
30
20
10

1995 96 97 98 99 00 01 02 03 04 05
Source: M. Namba depend on Shintaku et al. Hitostubashi Review Fall , 2008.
Measures to capture Appropriability of
Innovation by Tidd, J. et al., 2001
Trade secret
Accumulated tacit knowledge
Lead time and after-sales service
Learning curve
Complementary assets
The complexity of the product
Standards
Pioneering and innovative new product
The strength of patent protection
*The independent enforcement of these means is not necessarily
effective, and those combinations are required.
Index of Strategic Profit Zone
Capability of Index Strategic Control Points Examples
Profit
Protection
Standardization(10) Microsoft
High Control of the value chain(9) Intel, Apple
A series of prominent
Coca Cola
High position (8)
Customer relation ship (7)

Brand, Intellectual Property Numerous


2-year precedence in the development
Medium of products

2-year precedence in the development of Some
Low product
Nucor, South West
10 to 20% cost superiority
Air Line

Zero The cost competitive commodity product
Cost inferior commodity product Numerous

Adrian J. Slywotzky, David J. Morrison, Bob Andelman, The Profit Zone


Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Radical Innovation sometimes
takes long time for completion

From basic concept to


commercialization: 50 years
Where has Google come from? (MEMEX theory)

Vannevar Bush
1945 Vannevar Bush
proposed the concept of hypermedia
He proposed the automatic search and
editing system for data.
This system can search, edit and accumulate
the contents of a lot of description of a text
document based on "association" on the
basis of a microfiche.
The machine was named "MEMEX" (1945).
There was no computer and network which
still realizes it those days.
Source: Touru Nishigaki, Multimedia,1994
1945

http://www.mii.kurume-u.ac.jp/~smoto/edu/ala/history/f1.html
Analog way
Where has Google come from?
(MEMEX theory)
1945: Vannevar Bush; MEMEX Vision

1965: Theodor Holm Nelson: Conceptualization of
Hypertext
1968: Douglas Carl Engelbart; Demonstrated
Hypertext on computer

1989: Sir Timothy John Berners-Lee; Developed
WWW

1998: Google; Commercialization of Information
retrieval (What is not yet realized what is proposed
by Bush?)
Hypertext means " transcending the document" and linking the documents which have related contents.
http://www.tufs.ac.jp/ts/personal/yamaguci/inet_lec/lec12/98med12.html
Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
What is conception ability?

It is said: Steve Jobs is genius.


If so, how a ordinary people can
create radical innovation?

Let's hear the voice of philosophers.


(1724-1804)

Immanuel Kant
Conception ability is the specific
ability that a genius has.
He considered conception ability
of the artists.
Conception ability is composed by
Pathos and Logos.
(1724-1804)

Immanuel Kant
Mozart,
Conception ability is the
Beethoven)
specific ability that a genius has.
He considered conception ability of
the artists.
Conception ability is composed by
Pathos and Logos. staff
correc
voice from heaven,
enlightenment notation tion
(1897~1945)

Kiyoshi Miki
Expanded Kants concept to
technology area.

Technologist realizes his idea / concept


subject to natural law.

Concept ability is a genius ability that a


common person has. (1939)
(1897~1945)

Kiyoshi Miki
Expanded Kants concept to
technology area.
Copernicus
Technologist realizes his idea / concept
subject toconversion
natural law.
Concept ability is a genius ability that a
common person has. (1939)
Conception Ability

E. Kant Kiyoshi Miki


ability of the Concept related to
technology
artists: Thinking
think + action

Concept ability is a
Ability of Genius genius ability that a
common person has.
Conception Ability

Analysis of the " Conception Ability" is


required.

Element decomposition of the


Conception Ability

Output of the Conceiving power


Process model
K. Miki
Conception Ability
Hypothetical
(Pathos: Passion) Intuition

1. Pathos Imagination

Vision
Conceiving
2.Logos Concept

(Logos: Logic, Natural Law)


Logical, Concrete,

(Source: Prepared by M. Namba depend on K. Miki, The logic of Practical, Substantial


Conception, 1939.
Conception Ability
Hypothetical
(Pathos: Passion) Intuition

1. Pathos Imagination

Vision
Conceiving
2.Logos Concept

(Source: M. Namba
(Logos; Logic, Natural Law)
Logical, Concrete,
Practical, Substantial
(Source: Prepared by M. Namba depend on K. Miki, The logic of
Conception, 1939.
Brain Science
Recent brain science also asserts a
similar facts.

For example, Wilson (1998) says


Scholars of brain science confirmed
that 'passion' is tied to 'reason'
inseparably. If there is no affective
stimulation, the rational thought
blunts and declines.
Wilson, E. Consilience
The genealogy to he logic of Conception
Greek Philosophy Buddha

EKant
Zen
Kritik der reinen
Vernunft(Critique of Pure Nishida Kitaro
Reason) (1781) An Inquiry Into
the Good, 1911
Kiyoshi Miki
The logic of Conception , 1939
Source: M. Namba
Ration of Pathos and Logos

Logos

Pathos
Conception Development Commercialization
Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Two types of innovation

Develop- Commer -
Concept ment cialization

Borrowing Catch-up type


Existing
market/product

Own concept Front-runner type


Two type of innovation

Develop- Commer -
Concept ment cialization

Borrowing Catch-up type


Existing
market/product + Creativity
Own concept Front-runner type
Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
3
I innovation example

Imitation
Improvement
Innovation

Source: K. Seno
Other style of innovation

3
I innovation
Imitation
Improvement
Innovation
This method is very common.

Source: K. Seno
17~19
Century
Karakuri

wind-up doll
Automata

Karakuri doll
Origin of Karakuri
658
China: Mechanism
1620
Compass
vehicle Japan
Karakuri
Europe: Power spring
For entertainment
Watch
Precision gear

17 century
Zhou


770221) Japan

Compass Mechanism,
vehicle Gear
Technology
Point to the
658
south all the
time
A.D.

Dashi (float) Karakuri at


Improvement Festival in Nagoya area
1620
Karakuri move and play
Innovation Karakuri were toys in high-income class

17 century Tea serve


boy

Guest Host
Present Day Application
The Karakuri tradition
continues to influence the
Japanese view of robots.
Various Karakuri
Archery shooting boy
arrows
1820s

2M

https://www.youtube.com/watch?v=9bvyOgeJcjk
Made by Tanaka Hisasige,
Karakuri Craftsman, at the end of EDO era.

Later, he set up Tanaka Works Co. 1875, the


first private machinery manufacturer in
Japan.

1904, changed company name as Shibaura


Manufacturer, (now, TOSHIBA).
Opened in 1830. Liverpool and Manchester Railway
Engineer and inventor: George Stephenson
Who were entrepreneur?
Joseph Sandars (Rich merchant ) in Liverpool
John Kennedy(Owner of spinning factory, largest in Manchester)
Hisashige TANAKA (1799-1881)
Karakuri Master, Founder of
Toshiba

Imitation
1853, The first model steam engine in Japan
1855, Demonstration
Imitation
1902: The first homemade
Steam Engine.
Dead copy of A8 made in UK.

Improvement
1919: Original homemade Steam Engine; C51
1964: Shinkansen
Innovation

1981: TVG

The fastest train in the


world:574.8km/h
Linear Motor Car in the test line
Linear Shinkansen
603 Km/ h (April 2015)
Commercialization:
The fastest train in the world:
2027(Tokyo-Nagoya)
Sakichi Toyoda

1867-1930
The founder of the Toyota, was a
Karakuri Master.
1890 Wooden Manpowered loom

Imitation

Made by
Sakichi
Toyoda
1896 Steam-powed loom
Improvement
1924 Non stop automatic loom WW #1

Innovation
1929 Toyota Industries Corp.
Toyota Kiichiro
1929: Toyota Industries Corp. sold patent of
Non stop automatic loom to Plat corp. UK
by 1,000 million yen (present value:10
million US$).
Given to 5100 employees as bonus.
1933: Set up Auto Mobile Co.
1933 Imitation
1935 Improvement
1995 Hybrid Car

Innovation

1933 199562 yeas 1890 1995105 years


Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Difficulties of radical innovation in
established companies
It takes long time for technological
development.
It also takes long time to be profitable.
Original plan will be often changed through
change of top managements.

One of the method to avoid them :


Trickle up method
Trickle up theory
M. Branscomb & M. Kodama, 1991

This theory is extracted from Japanese


high-tech development cases.

Low end to high end


LCD
Carbon fiber

(Trickle: to move or go one by one or little by little )


Trickle Up Innovation
Application of new technology
First :Consumer market (learning)
Then: High specification product

Japan is strong in this style.


CFRP (Carbon-fiber-reinforced polymer )

Carbon fiber

Epoxy resin
History of Carbon-fiber

1879: T. Edison: Carbon Filament


1959: National Carbon (USA) :Test plant
1961: Mr. SHINDO, Akio:Polyacrylonitrile

Compared with steel


Weigh:
Strength: 7~10~ (Future,100)
Toray
History of Application of CFRP
1970:fishing rod
1985:golf shaft
1990: Airbus 320: Primary structure
1990: Boeing 777: Primary structure
1995: Industry machine
2000: Vessel
2005: Wind mill
20Off Shore Oil
2011: Boeing 787 (50% of body)
1970: fishing rod
1985: Golf shaft
1990 Airbus 320
Toray
History of Application of CFRP
1970:fishing rod 20 years
1985:golf shaft
1990: Airbus 320: Primary structure
1990: Boeing 777: Primary structure
1995: Industry machine
2000: Vessel
2005: Wind mill
20Off Shore Oil
2011: Boeing 787 (50% of body)
2005 Wind Mill
2011 Boing 787
As for 787 bodies, 50% of carbon fibers were used,
and 20% of fuel reduction was accomplished.
50% of Boeing 787 is
carbon fiber
in terms of weight

Carbon Aluminum and others


Fiber
World share of Carbon Fiber

Others Toray(Japan)

Teijin (Japan)
SGL Group (Germany) Mitsubishi Rayon (Japan)
Source: Nikkei Shinbun, Production Basis
Passion
President to president:
long race

Make small money


and reach to the final
target, big profit.
Toray
History of Application of CFRP
1970:fishing rod 20 years
1985:golf shaft
1990: Airbus 320: Primary structure
1990: Boeing 777: Primary structure
1995: Industry machine
2000: Vessel
40 years
2005: Wind mill
20Off Shore Oil
2011: Boeing 787 (50% of body)
Ratio of Pathos and Logos

Logos

From CEO to CEO


Pathos 40 yeas

Conception Development Commercialization


Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Dream Fiber
The spider silk has only thinness of
1/1000mm (1
If you have spider silk with thickness
of 1cm, it is not torn even if it
captures Jumbo Jet airplane at the
speed of 80m/s.

When can the dream come true?


It is already realized by
Spiber Co., Ltd.
Pilot production factory for Spider Silk
first in the world
Foundedation:2007
Paid in Capital: 14,600 Million
Succeeded in mass production of spider silk
for the first time in the world in 2013.
The total floor space is 6,600 square meters
Production capacity: 20 ton/year in a few
years
Number of Employees: 106
electron micrograph Diameter : 2
Toughness comparison between spider
silk and other fiber
Spiber
s prototype
Who is Spiber Co., Ltd.?
Head Office: Tsuruoka, Yamagata Pref.
Venture company set up in 2007
Named after: Spider + Fiber Spiber
Employees: 53
Paid in Capital: 2 billion yen
Founder: Mr. Kazuhide Sekiyama
(1983~)
Interview
December, 2014

Catch world peace in a spider silk


Kazuhide SEKIYAMA
CEO, Spiber
Corporate Identity: For Human Beings

Mr. SEKIYAMA Kazuhide, CEO


Today Future
Shock absorbing car body

Advanced
artificial blood
vessel
Mr. Sekiyama
Expected Applications
Parts for automobile
The car which does not hurt a person even if
it hits a person
Medical uses
Thread of the operation to be able to sew the
minute blood vessel and nerve

Many material of the world will replaced by


spider silk.
Such future is very near.
What was Triggering Event for
Mr. Sekiyama?
He has strong passion on the world peace
since high school days.
But he could not get a solution to realize it.
He met Dr. Masaru Tomita, Professor, Keio
Univ., specialist on biotechnology.
He made a speech: Biotechnology solves
every social problem, energy, environment,
food !
This gave Mr. Sekiyama strong impact.
Mr. Sekiyama says
At the drinking session, there was a topics that
"the greatness of insect in his senior days.
Insect is the most refined and prospering
creature on the earth.
It is a spider which very easily catch such
refined insects, and eat.
The weapon of the spider is " thread." I heard
that spider silk is the strongest natural fiber
above the ground.
Table of Contents
Innovation theories Innovation is difficult, why?
Innovation Stages of Innovation and
contributes to Appropriability of
National Economic Innovation
Growth at three major
places Where has Google come
Two walls of from?
Innovation What is conception ability?
What is innovation Two Types of Innovation
Product Innovation I3 Innovation
Matrix
Trickle Up method
Innovation Process
by Schumpeter Dream Fiber
S-Shape Curve Mori Ironworks
Mori Ironworks (Kurume City)
World market
share in high end
market: 40%

Drum for tire making





Tire forming machine


MORI s customers:
Tire for high end car
Special tire
KOMATSU960E
MORI to Michelin to NASA
Auto Production

Demand 1981
in Japan

Tire
Production

You might also like