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By John Stuart Mill

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The company also needs to continue and develop its effective use of such tools as CMM, as it expands its technological ambitions in collaborative projects. THE BRITISH PUMP FIRM The pump industry is well established in Britain, with a number of firms over a century old. It includes companies producing relatively simple products for irrigation projects in Africa, to highly sophisticated pumps used for oil exploration at great depths. Few firms have successfully diversified or grown to any significant size, and the industry has seen numerous company closures over the past decade.

In a study of seventeen innovations, Mansfield et al. (1977), found the social returns from R & D investment to be 56 per cent, and private returns to be 25 per cent. r Technological innovation has played a significant role in the economic transforma- tion of the East Asian economies (Kim and Nelson 2000). r Entire industries, such as the Swiss watch industry, and geographical regions, such as Silicon Valley in California, can be invigorated or depressed by technological change (Saxenian 1994; Utterback 1994).

It involves managing creative and productive researchers and research teams. Managing R & D is discussed in Chapter 6. MTI entails the management of product and service innovation. This includes efficiency factors, encouraged, for example, through the use of various project management systems; and effectiveness factors, such as whether chosen new products and services complement and build upon firms’ existing product bases, expertise, reputations, and overall innovation strategies. The management of design is an important component of new product and service development.

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