ABSTRACT
A fundamental problem in the field of management of technology is how firms develop radical and incremental innovations that sustain the competitive advantage in markets. Current frameworks provide some explanations but the general sources of major and minor technological breakthroughs are hardly known. The study here confronts this problem by developing a conceptual framework of problem-driven innovation. The inductive study of the pharmaceutical industry (focusing on ground-breaking drugs for lung cancer treatment) seems to show that the co-evolution of consequential problems and their solutions induce the emergence and development of radical innovations. In fact, firms have a strong incentive to find innovative solutions to unsolved problems in order to achieve the prospect of a (temporary) profit monopoly and competitive advantage in markets characterised by technological dynamisms. The theoretical framework of this study can be generalised to explain one of the sources of innovation that supports technological and industrial change in a Schumpeterian world of innovation-based competition.
Notes on contributor
Mario Coccia is a Senior researcher at the National Research Council of Italy and Visiting Scholar at the Arizona State University (Center for social dynamics and complexity). He has been Research Fellow at the Max Planck Institute of Economics, Visiting Professor at the Polytechnics of Torino and University of Piemonte Orientale (Italy). He has conducted research work at the Georgia Institute of Technology, Yale University, United Nations University – MERIT, University of Maryland, Bureau d’Économie Théorique et Appliquée, University of Toronto, RAND Corporations and University of Bielefeld. He has written extensively more than 280 papers in economics of science and technology, R&D management and related disciplines.
Notes
1. This research began in 2014 at the UNU-MERIT (The Netherlands) and is further developed in 2015 and 2016 at Arizona State University while I am a visiting scholar funded by National Research Council of Italy. This paper benefited from helpful comments and suggestions by Christopher S. Hayter and two anonymous referees. The author declares that he has no relevant or material financial interests that relate to the research discussed in this paper.
3. Dosi (Citation1982, 152, original emphasis) posits that ‘“technological paradigm” as “model” and a “pattern” of solution of selected technological problems based on selected principles derived from natural sciences and on selected material technologies’ (cf. Dosi, Citation1988).
4. Age-standardized rate (W) is the rate that a population would have if it had a standard age structure. Standardization is necessary when comparing several populations that differ with respect to age because age has a powerful influence on the risk of cancer (GLOBOCAN, Citation2012, http://globocan.iarc.fr/ –accessed February 2015).
5. Cf. Afshar (Citation2003) and Fraser and Pai (Citation2014). For countries with high R&D investment, see Coccia (Citation2005, Citation2007, Citation2008a, Citation2008b, Citation2009c, Citation2009d, Citation2010a, Citation2010c, Citation2013b, Citation2015b); Rolfo and Coccia (Citation2005).
6. An exon is the portion of a gene that codes for amino acids.
7. ‘A characteristic that is objectively measured and evaluated as an indicator of normal biological processes, pathogenic processes, or pharmacologic responses to therapeutic intervention’ (National Institute of Health, as quoted by Amir-Aslani and Mangematin Citation2010, 204)
8. The literature is vast and not fully cited here, but a good list of references is found in Dempke, Sutob, and Reck (Citation2010, 262–263, 271–274) and Coccia (Citation2012d, Citation2014d).
9. The evolution of technological paradigms is also based on developing new technological trajectories by ‘inventive analogical transfer’ from experience and solutions in one knowledge field—source domain e.g. a type of cancer—to solve new problems in other fields -target domains e.g. other cancers (cf. Kalogerakis, Lüthje, and Herstatt Citation2010, 418).
10. Cf. also Coccia Citation2001b, Citation2006a, Citation2008, Citation2009a, Citation2009e; Coccia and Cadario Citation2014; Coccia and Rolfo Citation2007, Citation2013; Coccia, Falavigna, and Manello Citation2015; for public research labs see also Coccia Citation2001a, Citation2003; Coccia and Rolfo Citation1999, Citation2002, Citation2010.
Coccia, M. 2004. “Spatial Metrics of the Technological Transfer: Analysis and Strategic Management.” Technology Analysis & Strategic Management 16 (1): 31–51. doi: 10.1080/0953732032000175490 Coccia, M. 2014b. “Driving Forces of Technological Change: The Relation Between Population Growth and Technological Innovation-Analysis of the Optimal Interaction Across Countries.” Technological Forecasting & Social Change 82 (2): 52–65. doi: 10.1016/j.techfore.2013.06.001 Coccia, M. 2014e. “Socio-Cultural Origins of the Patterns of Technological Innovation: What is the Likely Interaction Among Religious Culture, Religious Plurality and Innovation? Towards a Theory of Socio-Cultural Drivers of the Patterns of Technological Innovation.” Technology in Society 36 (1): 13–25. doi: 10.1016/j.techsoc.2013.11.002 Coccia, M. 2006b. “Classifications of Innovations: Survey and Future Directions.” Working Paper Ceris del Consiglio Nazionale delle Ricerche, Anno VIII, n. 2. ISSN (Print): 1591-0709. Coccia, M. 2010b. “Energy Metrics for Driving Competitiveness of Countries: Energy Weakness Magnitude, GDP per Barrel and Barrels Per Capita.” Energy Policy 38 (3): 1330–1339. doi: 10.1016/j.enpol.2009.11.011 Coccia, M. 2015b. “General Sources of General Purpose Technologies in Complex Societies: Theory of Global Leadership-Driven Innovation, Warfare and Human Development.” Technology in Society 42, August: 199–226. doi: 10.1016/j.techsoc.2015.05.008 Coccia M. 2015c. “Patterns of Technological Outputs Across Climate Zones: The Geography of Innovation.” Prometheus. Critical Studies in Innovation 33 (2): 165–186. doi: 10.1080/08109028.2015.1095979 Coccia, M. 2016b. “The Source and Nature of General Purpose Technologies for Supporting Next K-Waves: Global Leadership and the Case Study of the U.S. Navy's Mobile User Objective System.” Technological Forecasting and Social Change. doi:10.1016/j.techfore.2016.05.019. Coccia, M., U. Finardi, and D. Margon. 2012. “Current Trends in Nanotechnology Research Across Worldwide Geo-Economic Players.” The Journal of Technology Transfer 37 (5): 777–787. doi: 10.1007/s10961-011-9219-6 Dosi, G. 1982. “Technological Paradigms and Technological Trajectories. A Suggested Interpretation of the Determinants and Directions of Technical Change.” Research Policy 2 (3): 147–162. doi: 10.1016/0048-7333(82)90016-6 Dosi, G. 1988. “Sources Procedures and Microeconomic Effects of Innovation.” Journal of Economic Literature 26 (3): 1120–1171. Afshar, M. 2003. “From Genes to Products: Innovations in Drug Discovery.” Drug Discovery Today 8 (9): 392–394. doi: 10.1016/S1359-6446(03)02679-5 Fraser, H., and A. Pai. 2014. “The Role of Genomic Medicine in Transforming Healthcare.” Health Policy and Technology 3 (4): 223–225. doi: 10.1016/j.hlpt.2014.10.005 Coccia, M. 2005. “Countrymetrics: Valutazione Della Performance Economica e tecnologica dei paesi e posizionamento dell’Italia.” Rivista Internazionale di Scienze Sociali CXIII (3/2005): 377–412. Coccia, M. 2007. “A New Taxonomy of Country Performance and Risk Based on Economic and Technological Indicators.” Journal of Applied Economics 10 (1): 29–42. Coccia, M. 2008a. “Science, Funding and Economic Growth: Analysis and Science Policy Implications.” World Review of Science, Technology and Sustainable Development 5 (1): 1–27. doi: 10.1504/WRSTSD.2008.017810 Coccia M. 2008b. “Investimento pubblico e privato in R&S: complementarietà ed interazione con la crescita della produttività.” Economia e Politica Industriale 34 (3): 127–154. Coccia, M. 2009c. “What is the Optimal Rate of R&D Investment to Maximize Productivity Growth?” Technological Forecasting & Social Change 76 (3): 433–446. doi: 10.1016/j.techfore.2008.02.008 Coccia M. 2009d. “A new Approach for Measuring and Analyzing Patterns of Regional Economic Growth: Empirical Analysis in Italy.” Italian Journal of Regional Science- Scienze Regionali 8 (2): 71–95. Coccia, M. 2010a. “Foresight of Technological Determinants and Primary Energy Resources of Future Economic Long Waves.” International Journal of Foresight and Innovation Policy 6 (4): 225–232. doi: 10.1504/IJFIP.2010.037468 Coccia, M. 2010c. “Public and Private R&D Investments as Complementary Inputs for Productivity Growth.” International Journal of Technology, Policy and Management 10 (1/2): 73–91. doi: 10.1504/IJTPM.2010.032855 Coccia, M. 2013b. “What are the Likely Interactions Among Innovation, Government Debt, and Employment?” Innovation: The European Journal of Social Science Research 26 (4): 456–471. Coccia, M. 2015b. “General Sources of General Purpose Technologies in Complex Societies: Theory of Global Leadership-Driven Innovation, Warfare and Human Development.” Technology in Society 42, August: 199–226. doi: 10.1016/j.techsoc.2015.05.008 Rolfo S., and M. Coccia. 2005. “L’interazione tra ricerca pubblica e industria in Italia.” l’Industria Rivista di Economia e Politica Industriale 26 (4): 657–674. Amir-Aslani, A., and V. Mangematin. 2010. “The Future of Drug Discovery and Development: Shifting Emphasis Towards Personalized Medicine.” Technology Forecasting & Social Change 77 (2): 203–217. doi: 10.1016/j.techfore.2009.09.005 Dempke, W. C. M., T. Sutob, and M. Reck. 2010. “Targeted Therapies for Non-Small Cell Lung Cancer.” Lung Cancer 67 (3): 257–274. doi: 10.1016/j.lungcan.2009.10.012 Coccia, M. 2012d. “Evolutionary Growth of Knowledge in Path-Breaking Targeted Therapies for Lung Cancer: Radical Innovations and Structure of the New Technological Paradigm.” International Journal of Behavioural and Healthcare Research 3 (3–4): 273–290. doi: 10.1504/IJBHR.2012.051406 Coccia, M. 2014d. “Path-Breaking Target Therapies for Lung Cancer and a Far-Sighted Health Policy to Support Clinical and Cost Effectiveness.” Health Policy and Technology 3 (1): 74–82. doi: 10.1016/j.hlpt.2013.09.007 Kalogerakis, K., C. Lüthje, and C. Herstatt. 2010. “Developing Innovations Based on Analogies: Experience from Design and Engineering Consultants.” Journal of Product Innovation Management 27 (3): 418–436. doi: 10.1111/j.1540-5885.2010.00725.x Coccia, M. 2001b. “Satisfaction, Work Involvement and R&D Performance.” International Journal of Human Resources Development and Management 1 (2–4): 268–282. doi: 10.1504/IJHRDM.2001.001010 Coccia, M. 2006a. “Analysis and Classification of Public Research Institutes.” World Review of Science, Technology and Sustainable Development 3 (1): 1–16. doi: 10.1504/WRSTSD.2006.008759 Coccia, M. 2008. “New Organizational Behaviour of Public Research Institutions: Lessons Learned from Italian Case Study.” International Journal of Business Innovation and Research 2 (4): 402–419. doi: 10.1504/IJBIR.2008.018589 Coccia, M. 2009a. “Bureaucratization in Public Research Institutions.” Minerva, A Review of Science, Learning and Policy 47 (1): 31–50. Coccia M. 2009e. “Research Performance and Bureaucracy Within Public Research Labs.” Scientometrics 79 (1): 93–107. doi: 10.1007/s11192-009-0406-2 Coccia, M., and E. Cadario. 2014. “Organisational (un)learning of Public Research Labs in Turbulent Context.” International Journal of Innovation and Learning 15 (2): 115–129. doi: 10.1504/IJIL.2014.059756 Coccia, M., and S. Rolfo. 2007. “How Research Policy Changes Can Affect the Organization and Productivity of Public Research Institutes.” Journal of Comparative Policy Analysis, Research and Practice 9 (3): 215–233. doi: 10.1080/13876980701494624 Coccia, M., and S. Rolfo. 2013. “Human Resource Management and Organizational Behavior of Public Research Institutions.” International Journal of Public Administration 36 (4): 256–268. doi: 10.1080/01900692.2012.756889 Coccia, M., G. Falavigna, and A. Manello. 2015. “The Impact of Hybrid Public and Market-Oriented Financing Mechanisms on Scientific Portfolio and Performances of Public Research Labs: A Scientometric Analysis.” Scientometrics 102 (1): 151–168. doi: 10.1007/s11192-014-1427-z Coccia M. 2001a. “A Tool for Measuring the Performance in Research Organizations.” In Technology Management in the Knowledge Era, edited by D. F. Kocaoglu and T. R. Anderson, 160–168. Piscatawey, NJ: IEEE Operations Center. Coccia M. 2003. “Metrics of R&D Performance and Management of Public Research Institute.” Proceedings of IEEEIEMC 03, Piscataway, 231–236. Coccia M., and S. Rolfo. 1999. “Ricerca pubblica e trasferimento tecnologico: il caso della regione Piemonte” in Innovazione epiccole imprese in Piemonte, Franco Angeli Editore, Milano (Italy). Coccia M., and S. Rolfo S. 2002. “Size of Research Labs and Performance: An Analysis of the Italian National Research Council.” In Proceedings of 3rd International Conference on Management of Innovation and Technology, edited by X. Qingrui, W. Xiaobo, and C. Jin, 292–297. Hangzhou: Zhejiang University Press. Coccia M., and S. Rolfo. 2010. “New Entrepreneurial Behaviour of Public Research Organizations: Opportunities and Threats of Technological Services Supply.” International Journal of Services Technology and Management 13 (1/2): 134–151. doi: 10.1504/IJSTM.2010.029674
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