Managing Global Innovation (eBook)

Third edition 4
Preface to the Third Edition 6
Preface to the Second Edition 8
Contents 10
Part I Challenges and Trends 12
I.1 Challenges of Organizing International Research & Development
1 Changes in the Global Innovation Environment 13
2 Key Topics in Global R& D Management
I.2 Extent of R& D Internationalization
1 International R& D and Countries
2 International R& D and Multinational Companies
3 Factors Driving R& D Internationalization
4 Conclusion 64
I.3 Foreign R& D in China
1 The Rise of China as a Destination of Foreign R& D
2 How Important is Foreign R& D in China?
3 Research on R& D in China
4 Differences in Management Styles 79
5 Interaction with the Local Innovation System 81
6 Managing Chinese R& D Staff
7 Conclusions and Outlook 83
I.4 Internal Drivers 85
1 Five Organizational Concepts of International R& D Organization
2 Ethnocentric Centralized R& D
3 Geocentric Centralized R& D
4 Polycentric Decentralized R& D
5 R& D Hub Model
6 The Integrated R& D Network
7 Organizing International R& D
8 Conclusions 103
I.5 External Drivers 105
1 Four Archetypes of Externally Driven R& D Internationalization
2 National-Treasure R& D: Domestic Research and Domestic Development
3 Technology-Driven R& D: Dispersed Research and Domestic Development
4 Market-Driven R& D: Domestic Research and Dispersed Development
5 Global R& D: Dispersed Research and Dispersed Development
6 External Forces and Trends 112
7 Differentiating the Four Archetypes 115
8 Conclusions 119
I.6 Establishing Overlaying Structures 121
1 Perspectives of R& D Organization
2 Constituents of the Project and Processes Structure 124
3 Constituents of the Informal Links and Network Structure 128
4 Conclusions 133
I.7 Organizing Virtual R& D Teams
1 Organization of Virtual R& D Teams
2 Decentralized Self-Coordination 136
3 System Integrator as R& D Coordinator
4 The Core Team as a System Architect 142
5 Centralized Venture Team 147
6 Contingency Approach to Virtual R& D Teams
7 Conclusions 152
Part II Emerging Patterns 155
II.1 The Market as a Challenge for R& D
1 Push versus Pull Orientation 156
2 Focusing R& D on Market Needs
3 Siemens - Positioning Central Research 162
4 General Electric - Staying Vital through Business- Orientation and Cooperation 166
5 EGU - Matrix Organization in a Research Environment 168
6 Rolic - Selling Liquid Crystal Research to Customers and Markets 171
7 Conclusions 174
II.2 Technology Listening Posts 177
1 Listening Posts in R& D
2 Towards Organizational Concepts for Listening Posts 179
3 Trend Scout 181
4 Technology Outposts 182
5 Match Maker 184
6 Hybrid Listening Post Configurations 185
7 Managerial Implications and Conclusions 186
II.3 Managing the International R-to-D Interface 189
1 The Three Roles of the R-to-D Interface 189
2 Why is Research Different from Development? 192
3 Ensuring Vertical Transfer of Knowledge through R& D Funding
4 How to Get Technology Across 205
5 Conclusions 213
II.4 Transnational R& D Processes
1 Distinguishing R& D Phases
2 Stage-Gate-Processes to Support Project Management 218
3 Pre-project Phase: Fostering Creativity 221
4 Development Phase: Focusing on Efficiency 229
5 Market Introduction: Focus on Time-to-Money 233
6 Conclusions 236
II.5 Information & Communication Technologies
1 ICT Changes How R& D is Done
2 The Need for ICT in Transnational R& D Projects
3 Use of ICT in Decentralized Projects 242
4 Selected ICT Instruments 246
5 Dynamics in the Course of a Project 252
6 Means to Measure and Lead Dispersed R& D Teams
7 Limitations of ICT in Virtual R& D Teams
8 Conclusions 256
II.6 Directors of International R& D Labs
1 R& D Directors: An Easy Choice?
2 Profiles of Initial R& D Directors
3 Determinants of Director Selection 268
4 Managerial Recommendations 272
5 Conclusions 275
II.7 Managing Knowledge and Human Resources 277
1 Building Bridges between Islands of Knowledge 277
2 Knowledge Creation and Project Management: A Matter of Managing People 278
3 Managing Cultural Diversity 287
4 Management Concepts are Almost Impossible to Transfer 289
5 Conclusions 290
Part III Best- in-Class: The Pharmaceutical and Chemical Industry 293
III.1 DuPont: Gaining the Benefits of Global Networks — from the Science Base to the Market Place* 296
1 Leading in the Chemical Industry - DuPont 296
2 R& D Organization
3 R& D Coordination
4 Important R& D Instruments and R&
5 Example of an International Project 304
6 Conclusions 308
III.2 Hoffmann-La Roche: Global Differentiation between Research and Development* 309
1 The Roche Group 309
2 R& D Organization
3 R& D Coordination
4 Important R& D Instruments and Procedures
5 Problems and Challenges of the Existing Organization 317
6 Conclusion 320
III.3 Schering: Synchronized Drug Development* 323
1 Concentration on Core Businesses 323
2 R& D Organization
3 R& D Coordination and Management
4 R& D Instruments and Processes
5 Levovist: Example of an International R& D Project
6 Conclusions 331
III.4 Ciba: International Research Laboratories in Japan: Practical Validation of a Strategic Concept* 332
1 Ciba before the Merger with Sandoz 332
2 R& D Organisation
3 R& D Coordination
4 Example of an International R& D Project
5 Establishing International Research Labs in Japan 337
6 Successes and Failures 341
7 Conclusions 344
III.5 Kao: Localizing R& D Resources*
1 Customer Commitment 348
2 Plants and Laboratories in Japan 349
3 The Coordination and Management Structure of R& D
4 Managing R& D: Flat and Dynamic
5 International Labs: Tapping Local Resources 354
6 Conclusions 355
Part IV Best- in-Class: The Electronics, Software, and Service Industry 357
IV.1 Xerox: The Global Market and Technology Innovator* 360
1 Xerox, the Document Company 360
2 Research and Development 365
3 R& D Coordination
4 R& D Instruments and Procedures
5 An International R& D Project: XTRAS
6 Conclusions 376
IV.2 Canon: R& D –Driver for Continuous Growth and Diversification*
1 Continuous Growth and Diversification 377
2 R& D Organization
3 R& D Coordination
4 Overseas R& D Centers
5 Example of an International R& D Project
6 Conclusions 392
IV.3 Hewlett-Packard: Planet-Wide Patterns in the Company’s Technology Tapestry* 394
1 Preface 394
2 HP: A Strong Company in Growing Industries 395
3 The WARP Threads: HP’s Global Attributes and Practices 400
4 The WEFT Threads that Add Color and Texture to Local Patterns 413
5 A Successful Team 435
IV.4 IBM: Using Global Networks for Virtual Development* 442
1 Leadership Through R& D in Information Technology
2 R& D Organization
3 R& D Coordination
4 Management of International R& D Projects
5 Conclusions 454
IV.5 SAP: Global Intellectual Property Management in the Software Industry Sector* 456
1 The Software Company SAP 456
2 SAP Research Organization: The Teams 457
3 SAP Research Coordination: The Research Process 461
4 Global Collaborative Research Activities 462
5 Intellectual Property Management at SAP 464
6 Conclusions 479
IV.6 Unisys: Localization of Software Development* 483
1 Main Business Information Technology 483
2 Research and Development Organization and Coordination 484
3 Important R& D Instruments and Procedures
4 URBIS Localization 490
5 Conclusions 500
IV.7 Huawei: Globalizing through Innovation 503
1 Who is Huawei? 503
2 International Expansion of Sales and Services 507
3 R& D at Huawei
4 Internationalization of R& D
5 Conclusions 517
IV.8 Fujitsu: Solutions for the Ubiquitous Networking World* 519
1 Fujitsu 519
2 Global Collaboration of Fujitsu Units in Innovation Projects 523
3 Flexible R& D Structures and New Innovation Approaches
4 Outlook and Conclusions 529
IV.9 Swiss Re: Global Intellectual Property Management in the Financial Services Industry* 531
1 The Reinsurance Company Swiss Re 531
2 Research and Innovation 532
3 Global Collaborative Research Activities 532
4 Intellectual Property Management at Swiss Re 533
5 Conclusions 547
Part V Best- in-Class: The Electrical and Machinery Industry 551
V.1 ABB: Management of Technology: Think Global, Act Local* 553
1 The Transnational Company ABB 553
2 R& D Structure
3 R& D Coordination and Integration
4 Conclusions 564
V.2 Daimler: Global Knowledge Sourcing and Research* 566
1 Daimler-Benz‘s R& D Organization in Overview
2 Management of International R& T Sites
3 R& D Projects in an International Context
4 Conclusions 592
V.3 Schindler: Institutionalizing Technology Management and R& D Core Competencies*
1 Schindler - the Elevator and Escalator Company 596
2 Former Innovation Examples 597
3 Organization, Process and Infrastructure of R& D
4 Identifying Core Competencies in R& D
5 Technology Management as an Ongoing Process 608
6 Managing Human Resources in R& D
7 Conclusions 613
V.4 Hitachi: Management Practices for Innovation in Global Industrial Research* 615
1 Three Major Issues for Global R& D
2 New Innovation Processes for Global R& D
3 New Directions in Hitachi‘s R& D
4 More Innovation through R& D Globalization
5 Establishing Corporate R& D Center Outside of Japan
6 Examples of Innovations Achieved in European R& D Center
7 Management of Global R& D as Practiced in European R&
8 Experience of Practicing R& D Management in Europe
9 Conclusions – Across the Boundaries of Nations and Multiple Cultures 636
V.5 Leica Microscopy: International Transfer of R& D Activities*
1 Leica Microscopy and Surveying 639
2 R& D Organization
3 Example of an International R& D Project
4 Most Important Lessons Learned 649
5 Conclusions 652
V.6 MTU: Partner in International High-Tech- Cooperations* 654
1 Profile of the Jet-Engine Industry and the Joint „ Advanced Ducted Propfan” Program 654
2 R& D Organization
3 R& D Coordinator
4 Important R& D Instruments and Procedures
5 Specific Aspects of the Demonstrator and Technology Readiness Program 665
6 Conclusions 666
V.7 BMW Group: Strategic Framework for Global Innovation to Enhance the Efficiency of Global R& D*
1 At a Glance: The BMW Group in Today’s Automotive Industry 667
2 Taking Advantage of Global R& D
3 Conclusion: Balancing Inside and Outside Innovation in Global Network Structures is the Future Challenge 682
V.8 Siemens: Flying with the Dragon - Innovation in China* 684
1 The China Magic 684
2 Innovation in China: Yesterday, Today, and Tomorrow 685
3 Siemens and Siemens in China 687
4 Siemens R& D in China
5 Siemens Corporate R& D in China
6 Flying with the Dragon: China and Siemens, Perfectly Together 696
Part VI Implications 698
VI.1 Implications for Organizing Global R& D
1 Organizing Global R& D
2 Some Dilemmas in Global R& D
3 Looking Ahead: Organizing Global R& D Ten Years From Now
Bibliography 740
Index 772
Index of Companies 778
Editors 783
Case Study Contributors 785