Innovation and Commercialization of Emerging Technologies (Part 4 of 5)

nnovation does not necessarily proceed linearly from basic scientific research to product development; it is an iterative process of both matching market needs to technological capabilities and conducting research to fill gaps in knowledge, whether during product conception, product design, manufacturing, marketing, or other phases of the innovation process. Commercial success depends as much on the ability of firms to establish and protect a proprietary advantage in the marketplace as it does on their ability to generate new scientific and technical advances. The process of innovation varies dramatically across industries and product lines. In some industries, like pharmaceuticals, innovation depends heavily on scientific breakthroughs; in others, like electronics, it derives more from product and process design. In addition, innovation takes on different characteristics throughout product and industry life cycles. Nascent industries exhibit high levels of product innovation as firms attempt to settle on the primary characteristics and architectures of their new offerings; later phases are characterized more by process innovation, as firms attempt to improve their means of manufacturing existing product lines. Government policies to facilitate innovation and commercialization can be more effective if they recognize the varying conditions leading to success in different industries and address the many barriers firms face in all stages of innovation, from emergence to maturity.