Kevin Parker: Innovation as a collective undertaking applied to newly pervasive technologies

Why is innovation the current king of management concepts? How has it become in manufacturing circles something akin to one of the “four big truths” or “five shining lights” that used to emerge with the five-year plans of command economies? According to Paths of Innovation: Technological Change in 20th Century America, by Mowery and Rosenburg, it wasn't till the second h...


Why is innovation the current king of management concepts? How has it become in manufacturing circles something akin to one of the “four big truths” or “five shining lights” that used to emerge with the five-year plans of command economies?

According to Paths of Innovation: Technological Change in 20th Century America , by Mowery and Rosenburg, it wasn't till the second half of that century that economists fully appreciated “the extent to which economic growth was a consequence of the process of technological change.” As proof, studies show only a relatively small percentage of measured output in the late 19th and early 20th century as accounted for by growth in measured inputs of capital and labor.

While technological change undoubtedly accounts for much of the additional output growth, its impact, unfortunately, doesn't last, as new products and industries “experience retardation in their growth rates as their markets reach saturation… and further cost-reducing process innovations have relatively small effects on demand,” the cited studies demonstrate.

Does that mean then, that product innovation, as opposed to process innovation, is always the key to success?

Not necessarily, as the always helpful Wikipedia points out in its entry on “innovation”: process innovation can lead directly to increased shareholder value. Product innovation, on the other hand, risks costly R&D efforts that, if they fail, can erode shareholder value.

Mowery and Rosenburg themselves feel the studies underestimate “the importance of the adoption of new technologies by mature industries.” And they point out it's hard to untangle all the threads involved, because of globalization.

It's become a cliche to point out that—measured by share of gross national product accounted for by exports—the U.S. economy 1900 to 1910 was more open than any time from 1910 to 1970. But the last third of the 20th century saw “an increasingly dense network of inter-firm relationships… that contribute to more rapid international flows of technology…. The spectacular improvements in the information technologies that unite this international network have lent to the term 'globalization' a vastly expanded significance over its meaning at the beginning of the century.”

It's wrong also, the authors say, to think innovation only arises from fundamental research at the frontiers of science or even the institutionalization of innovation as “R&D,” but rather often draws on “existing technological knowledge.”

Perhaps that's why innovation discussions find an audience, despite that relatively few executives, managers, or knowledge professionals are directly engaged in R&D or design efforts. New technologies are so quickly pervasive it's as if we're all engaged in some grand exercise to learn how to best apply them.

No one, for example, has ever been identified as the inventor of the generic engineering and production systems used in manufacturing enterprises today. Yet, while infinitely varied in detail, basic system elements are common around the world.

Innovation discussions speak to us because we're all part of a collective effort to find best uses for new technologies that have come into our lives in the last twenty years, applying them in ever finer granularity of detail to a heritage of processes that must change in light of the evolving technology infrastructure.

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2015 Top Plant: Phoenix Contact, Middletown, Pa.; 2015 Best Practices: Automation, Electrical Safety, Electrical Systems, Pneumatics, Material Handling, Mechanical Systems
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Raising the standard: What's new with NFPA 70E; A global view of manufacturing; Maintenance data; Fit bearings properly
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Migrating industrial networks; Tracking HMI advances; Making the right automation changes
Understanding transfer switch operation; Coordinating protective devices; Analyzing NEC 2014 changes; Cooling data centers
Upgrading secondary control systems; Keeping enclosures conditioned; Diagnostics increase equipment uptime; Mechatronics simplifies machine design

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.