Index

Martin Fransman

doi:10.1017/9781108646789.014

Index

2007 financial crisis, 11, 308–313

2G mobile, 106–107

ability to imagine, 1

Abraham, Nigel, 95, 99–100

actors, 30–34, 114, 244–248

adaptive responses, 160–162, 167–168

Adastral Park, 99–100

added value, 268–269, 287–288, 296–297

administrative man, 245–246

adoption, 268

advanced country markets, 86–87

Advanced Research Projects Agency Network (ARPANET), 205

Advanced Telecommunications Corp., 207

Advantage Companies Inc., 207

agents, 243. See also conflict of interest

aggregate demand, 301

aggregate production functions, 20

alliances, 86–87

ambiguous evidence, 231

American Telephone & Telegraph (AT&T), 81–82, 120–128, 205, 213, 217. See also Bell Laboratories

Grubman working for, 211

as incumbent, 206–207, 213–216

animal spirits, 303–308

Anschutz, Joseph, 213

APIs. See application programming interfaces

app platform provider, Apple as, 78

Apple, 51–52, 77–78, 92–95, 265–266, 272

as app platform provider, 78

as high-tech company, 69–70, 92–102

intangible investments of, 93

iPhone of, 18–19, 77

iTunes of, 78

overview of, 92–102

appliance computer, 51–52

application programming interfaces (APIs), 50

arbitrage, 217

ARPANET. See Advanced Research Projects Agency Network

Asia, 260

assets, 52–53, 198–199, 217–218, 220, 301–313

financial, 11–12, 198–199, 203, 259

money as, 220

asymmetric information, 163–165

AT&T. See American Telephone & Telegraph

attention, scarcity of, 244–248

attenuation rates, 146–149

Austrian theory, 239–241

Baby Bells, 81–82, 213

background, 60–61

Baldwin, C. Y., 54–55

bandwidth, demand for, 209–213, 232

Banerjee, A. V., 222

bank credit, 216–218

Bank of England, 300, 308–313

bankruptcy, 237

Bardeen, John, 122–124

Basov, Nicolay Gennadiyevich, 135

Bateson, Gregory, 39–45

Bayes’ Rule, 231

BE. See business ecosystems

beauty contests, 201–202, 218–222, 227–229

behaviour, 221–222, 229–231

Beijing, China, 289

beliefs, 198–199, 209–216, 231, 238–244

Bell, Alexander Graham, 120, 126

Bell Laboratories, 120–128, 133–144, 148, 232–233

Bell Laboratory Record, 125

Bell Operating Companies, 206–207

benchmarking, 218–223, 229–231

benefits, 216–218, 239–241

biased incentives, organisational routines and, 242–244

billboard (kanban), 181

biological systems, 96, 312–313

Bio-Medical Global Innovation Ecosystem, 286–288

BIS. See Department of Business, Innovation and Skills

black box, 20

Blank, Steve, 179

boom, 204–205, 208–209, 223–224. See also telecoms boom and bust

Boston, Massachusetts, 215

boundaries, 50–51, 65, 79, 101–104, 266

bounded rationality, 244–248

Brattain, Walter, 122–124

Britain, 259–262, 283, 306–308

British Aircraft Corporation, 306–308

BT, 86–87, 98–100

as new entrant, 209–216

bubbles, 213, 217–218, 222–223, 248–253, 259

Buffett, Warren, 209–210

building, 183–184

Build-Measure-Learn feedback loop, 183–184

Busicom. See Nippon Calculating Machine Corporation

business cycles, 239–241

Business Cycles (Schumpeter), 160–162

business domains, 48–50

business ecosystems (BE)

boundaries of, 50–51

definition of, 40–42, 46

discussion on, 59–62

dominators influencing, 49–50

drivers of innovation in, 55

fringes of, 55

innovation ecosystem drawing on, 8

Innovation System compared to, 104–106, 153–154

keystones dominating, 49–50

Moore, J., pioneering, 5–7, 38–59, 61

national systems of innovation contrasted with, 111

NIS compared with, 7–8, 22–67

noncompany players attention of, 111

overview of, 5–7, 38–59, 111–112

platforms in, 50

players in, 42–47, 49

reflections on, 7–8, 43–45

value creation in, 52–53

business enterprises, disaggregation of, 267–271

business leadership team, product development team distinguished from, 186–187

business units, 6, 47–48, 59, 64, 172–175

bust, 236–238. See also telecoms boom and bust

buyers, 226

California, 127, 135, 138

Cambridge University, 177, 267–273. See also Marshall, Alfred; Penrose, Edith

capabilities, stickiness of, 78

capacity swaps, 229

capital expenditure, in IIE, 89

capital gains, 198–199, 217–218

capitalism, as restless system, 15

Capitalism, Socialism and Democracy (Schumpeter), 160–162, 165–169

capitalist development, history of, 257–261

capitalist society, 116

capitalists, 159

carrying-out, 159–162, 176–177

catch-up countries, 262–265

CDRF. See China Development and Research Foundation

central research laboratories, 172–175, 233–236

Cerf, Vinton, 205–206

chain of expectations, 212–216

children, 116–118, 123–124, 151–153

China, 66, 77, 83–84, 95, 254–298. See also Huawei

GDP of, 95

metropolitan market of, 84–86

policy case of, 12, 102

Shenzhen in, 99

ZTE of, 82, 91–92

China Development and Research Foundation (CDRF), 254–298

China Mobile, 85–86

China Telecom, 85–86

Chinese Army, 83

Chinese Communist Party, 83–85

Chinese Innovation Ecosystem, Huawei’s membership of, 107

Chinese market, seductiveness of, 277–278

Chinese State Council, 254–298

Chisholm, Paul, 215

Christensen, C. M., 54–55

City of London Telecommunications (COLT), 213–216

Clark, K. B., 54–55

CLECs. See competitive local exchange carriers

clinical trials, 151–153

clusters, 288–289

Clyde River, 259–260

coevolution, 39–45, 103, 149, 192–193

COLT. See City of London Telecommunications

Columbia University, 28, 134, 141–142

combinations, 160–162, 238

command and control, 295–296

Commission on Industrial Productivity, 26–27

Communist Political Association, 141–142

Compagnie des Freins et Signaux Westinghouse, 124

companies, 61–62, 78, 268–270, 293–294

division of labour in, 172–178

as large, 267–268, 280–281

as players, 63–64, 287

company competitiveness, 273

Company Innovation Ecosystems, 109–110, 292

company-level global innovation ecosystems (GIEs), 281–282, 289

competition, as strong, 274–276

competitive horizontal relationships, 80–87

competitive local exchange carriers (CLECs), 215

competitiveness, 53–57, 59–60, 94–102, 272–278

competitors, as global, 274–276

computer-on-a-chip. See microprocessor

computing subsector, mobile telephone subsector converging with, 107–108

Concorde, 18–19, 119, 153, 256, 299–313

confirmatory bias, 242

conflict of interest, 163–165, 242–244

Consensual Vision, 209–216, 228, 232–238, 241–244, 249–250

flaws in, 252

processes generating, 251–252

supply side ignored in, 229–231

consumer-users, 60–61

consumption, 11–12, 268–269

contagion, 202–203

context, 14–21, 97–98, 120–121, 129–130, 134–135, 144–148

of Viagra, 150

contextual coordinates, overview of, 97

control, 295–296, 314–315

conventional wisdoms, challenging of, 248–253

cooperative vertical relationships, 73–77, 98–100

copper cable, 148

Corning, 147–149

corporation, division of labour in, 172–175

corrective research, 253

costs, 216–218, 239–241, 303–308

country competitiveness, 273

crap stocks, 243

creative responses, 160–162, 167–168, 189

creative-destructive system, 25

creators, 75–87, 95–102, 121–123, 148

credit, 216–218, 264–265

creditors, 237

crystal amplifier, 122

Crystal Fire: The Invention of the Transistor and Birth of the Information Age (Bardeen and Brattain), 123

curiosity, 136–140

current cost, 303–308

customers, 179, 192–193, 274–276

customer-users, 268–269, 290–291

Cusumano, M. A., 54–55

Darwin, Charles, 14–15, 19, 276–278

The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems (Moore, J.), 39–45

decision-making, 17–19, 186–187, 222, 244–248

decisions, 113–117, 159, 186–187, 299–313

on perseverance, 184–185, 193

on pivot, 184–185, 193

demand, 58–59, 198, 209–213, 229–232, 301

Deng Xiaoping, 83–84

dense wavelength division multiplexing technique (DWDM), 232–233

Department of Business, Innovation and Skills (BIS) (UK), 37–38, 283, 287–288

Dertouzos, Michael, 26–27

designing, 278–279, 290–292, 295

development. See research & development

“Dielectric-fibre surface waveguides for optical frequencies” (Kao and Hockham), 146

differentiation, 7, 169–171

diffusion, 268

Digiworld Economic Journal, 103–110

diode tunnelling effect, 126–127

discontinuity, 96

displacement, 203–204

dividends, 217–218

division of labour, 79, 156–157, 169–178, 186–194

within process, 77, 194–196

dominators, 49–52

dopant, 147–148

dot-com boom and bust, 11, 199–200

Dot-Com bubble, 222–223

DRAM chip. See dynamic random-access memory chip

drivers, of innovation, 55, 94–95

Dublin, Ireland, 209–210

Dunn, Peter, 150–153

DWDM. See dense wavelength division multiplexing technique

Dye, Tony, 222–223

dynamic random-access memory (DRAM) chip, 129

earnings, 223–226, 229

earnings before interest, tax, depreciation, and amortization (EBITDA), 223–226

East Asia, 260

Ebbers, Bernard, 213

EBITDA. See earnings before interest, tax, depreciation, and amortization

economic activity, 257–261

economic change. See Schumpeterian-evolutionary economics

economic growth, 20, 261

economic output, 11–12

economic theory, 12–13

economics, 308–313. See also mainstream economics

economy-wide equilibrium, 17–18

edge firms, 55

efficient markets hypothesis, 223–226, 250

Einstein, Albert, 134, 143–144

Electric Grid, 215

electrical engineers, 143–144

embeddedness, 294–296

emergent cooperation, 40

emergent innovation, 18–19

emerging countries, 84–86

employment, 11–12, 265, 301

endogenous growth model, 20

ends, means confused with, 58, 256–257

Energis, 213–216

engine of change, 17–18

engineering units, 177

England, 99–100, 145

Enron, 51–52

enterprises, 261–265, 267–271, 278–283

entrepreneurial innovation decision-making, 18–19

entrepreneurs

carrying-out of, 159–162, 176–177

as classical, 157–158

decisions of, 159

definition of, 9, 180, 195–196

distinctiveness of, 158–162

functions of, 158–178, 185–187, 195–196

as iconic, 157–158

innovation happening because of, 155–196

inventors distinguished from, 155, 159–162

in layer model, 77–78

mainstream economics traveling with, 16–17

manager distinguished from, 159

moment-in-being of, 163

money needed by, 264–265

as obsolete, 8, 10, 67, 155–196

overview of, 8–10, 15–18, 67, 155–196

players distinguished from, 9, 155

resistances overcome by, 10, 162–165, 168–169

Schumpeter on, 9–10, 23–24, 155–196

takers providing for, 163–165

entrepreneurship, specialisation and, 169–178

equilibrium, 17–18, 308–313

equipment providers. See information and communication technologies equipment providers

era of liberalisation, of telecoms service provision, 81–82

era of natural monopoly, 80–81

erectile dysfunction, 150–153

Ericsson, 99–100, 106–107

Esaki, Leo, 126–127

Europe, 106–109, 213–216, 223–224, 275

European Commission, 276–277

evaluating, 193, 293

evidence database, 284

evolution, 19, 62, 79, 251, 276–278, 284–285

imagination as, 114

variety providing for, 252

An Evolutionary Theory of Economic Change (Nelson and Winter), 19, 29, 32

ex ante perspective, 154, 166–168, 307–308, 310–313

ex post perspective, 112–113, 307–308

exogenous growth model, 20

exogenous innovation process, 61–62

exogenous outcomes, 59

expectations, 17–18, 114–115, 198–199, 240, 259. See also Consensual Vision; “The State of Long-Term Expectation”

chain of, 212–216

of housing market, 204–205

as subjective, 118

in telecoms boom and bust, 212–216

as unrealistic, 239–241

expenditures, 217–218, 272

experimenting, 182–184, 192–193

external environment, 280–281

External Knowledge Seekers, 289–291

Faggin, Federico, 131–133

Fairchild Semiconductor, 127, 129, 131

feasibility, 113–114, 118

feedback, 118, 183–184, 193, 213

fetish of liquidity, 218–222

feudal societies, 116

Fidelity, 215

figuring out, 166–168

finance noncompany players, 87–88

financial assets, 11–12, 198–199, 203, 259

financial bubbles, feedback loops causing, 213

financial crises, 11, 236–239

financial cycles, 239

financial ecosystems, 12, 197

financial instability, 10–12, 19–20

financial markets, 11–12, 197–253

financial prices, 202–203, 250

financial services, 70–73, 197

financing, 128

FIP. See Fransman Innovation Programme

firms, 32, 55, 71–72, 289–291

definition of, 43–45, 103, 267–273

industries’ relationship to, 34–36

overview of, 30–32, 71–72, 267–273

Penrose on, 103, 267–273

as players, 43–45

as representative, 71–72

First World War, 259–260

fixed costs, 80

focal company innovation ecosystems, 66

focal firms, 289–291

Forest, Lee de, 120–121

Fortune 500 companies, 12, 254–298

Foxconn, 77

France, 306–308

Fransman, Martin, 88–89, 119, 124, 181, 200, 254–298

interview with, 103–110

Fransman Innovation Programme (FIP), 292

Freeman, Christopher, 4–5, 24–30, 33, 105

frictions, 163–165, 191–193

Fujitsu, 91–92

functions, 156–157, 169–178, 185–187, 194

of entrepreneur, 158–178, 195–196

fund managers, 202–203, 218–223, 229–231, 242–244

fundamental unity of action, 169–171

funding, 128, 208–209, 282–283

future earnings, of new entrants, 223–226

Galapagos Effect, 276–278

Gates, Bill, 205–206, 209–210

Gawer, A., 54–55

GDP. See gross domestic product

The General Theory of Employment, Interest and Money (Keynes), 12–14, 222–223, 299–313. See also “The State of Long-Term Expectation”

Germany, 251, 259–260

Gerstner, Lou, 85

GIEs. See global innovation ecosystems

givens, 218–222

Glasgow, Scotland, 259–260

glass company, 147–148

global competition, 272–278

Global Crossing, 209, 236–237

global customers, 274–276

global innovation ecosystems (GIEs), 265–296

global markets, 274–276

Global System for Mobile communications (GSM), 106–107

global telecommunications switching industry, 119

globalisation, global competitiveness and, 273–277

globally competitive indigenous companies, 261–265, 281–282

Google, 177

Gordon, Robert, 261

Gould, Gordon, 141–142

governance, 284–285

government, 287, 294, 296

Grabiner, Mike, 215

Graduate School of Business, 179

grandchildren, 124–127

Great Britain, 259–262, 283, 306–308

great goods, 265–266

Greene, Harold, 206

gross domestic product (GDP), 95

Grove, Andy, 198

growth hypothesis, 182

Grubman, Jack Benjamin, 209–212, 246–248

Consensual Vision influenced by, 213–216, 241–244

GSM. See Global System for Mobile communications

Gurus, 244–248. See also Grubman, Jack Benjamin

Harari, Y. N., 114

Harrington, Andrew, 215

Harvard Business School, 45, 179, 244

Harvard University, 38, 264

Harvey, Will, 178

Hattiesburg, Mississippi, 206–207

Hayashi, Izuo, 149

Hayek, Friedrich, 10, 171–172, 174–175, 177–178, 216–218, 240

on Austrian theory, 239–241

hearing aids, 126

Henderson, R. M., 54–55

Henten, Anders, 103–110

herd behaviour, 222

Hicks, John, 116–117

Higa, Walter, 138

high-tech company, Apple as, 69–70, 92–102

Hockham, G. A., 145–148

Hoff, Marcian Edward, 130–133

Homo sapiens, 1

Hon Hai, 77

Hong Kong, China, 83–84

horizontal competitive innovation relationships, 69, 97, 100

housing market, 204–205

how questions, 111–154

decision in, 113–117

ex ante perspective of, 111–118

innovation emergence in, 118–154

overview of, 63, 66–67, 101–102, 155

subdivision according to, 176–178

Huawei, 82–87, 91–92, 98–100, 107

Abraham at, 95, 99–100

R&D of, 99

Hubbard, Gardiner, 120

Hughes, Thomas, 121

Hughes Research Laboratories, 135

humans, 1, 96, 244–248

hunter-gatherer societies, 116

Hutchison Whampoa, 84

Iansiti, Marco, 6–7, 45–59, 64, 109

The Keystone Advantage: What the New Dynamics of Business Ecosystems Mean for Strategy, Innovation, and Sustainability by, 105

IBM. See International Business Machines

Ibuka, Masaru, 125–127

iconic entrepreneurs, 157–158

ICT. See information and communication technologies

ICT ecosystem. See information and communication technologies innovation ecosystem

IIE. See information and communication technologies innovation ecosystem

illiquid assets, investment markets dealing in, 220

imagination, 1, 113–114, 118, 264

implementation, 3, 190–193, 292

IMVU, 178–179

incentives, 242–244, 268, 290–291, 295

increasing subdivision of functions, 169–171, 194

incumbents, 200–201, 210–216

new entrants and, 233–238, 251–252

of UK, 214

of US, 251–252

independent research, 248–253

indicator, 94–95

indigenous companies, as globally competitive, 261–265

industrial leadership, 34–36

industrial policy, 264

industrial research laboratories, 31–32

industrialisation, 254–298

inertia, 163–165

in-firm training, 265

information, 226, 231, 242–244, 250, 301–313

processors, 244–248

Simon on, 244–248

information and communication technologies (ICT), 28, 70–73, 90–102, 273. See also dot-com boom and bust; telecoms boom and bust

information and communication technologies (ICT) equipment providers, 79

information and communication technologies (ICT) innovation ecosystem (IIE)

capital expenditure in, 89

competitive horizontal relationships in, 80–87

competitiveness in, 95–102

cooperative vertical relationships in, 73–77

definition of, 68, 73

evolution of, 79

innovation hypotheses within, 70

Internet influencing, 11

layer model in, 68–70, 75–87

noncompany players in, 87–88

overview of, 8–9, 11, 23, 66–102, 112

players in, 73–77

process in, 88–102

R&D in, 69–70, 88–95

sector in, 70–73

SRs in, 75–77

unit of analysis in, 70–73

vertical symbiotic relationships in, 75–77

information feedback, testing providing, 118

innovating, in machine, investing compared to, 299–313

innovating technologists, scientists’ distinction with, 136–140

“Innovation, New Waves of Industrialisation, and the Implications for China” (Fransman), 254–298

“Innovation and New Wave Industrialisation” (CDRF), 254

Innovation and Research Strategy for Growth (Department of Business, Innovation and Skills), 37–38

innovation ecosystems, 118. See also Chinese Innovation Ecosystem; Company Innovation Ecosystems; how questions; organisation-level innovation ecosystem; who questions

boundaries of, 65, 103–104, 266

caution regarding, 101–102

caveat of, 62, 70

conceptualisation of, 9, 153–154

creation of, 188–194

definition of, 8, 62, 103–106, 188, 197

as global, 265–296

Innovation System’s difference with, 104–106

laser influenced by, 143–144

NIS and, 8, 22–67

overview of, 8–9, 62–67, 70, 103–110, 188–194

performance of, 271–273

players in, 63–64, 103–104, 136–140, 266–271, 273–277

of transistor, 127–128

types of, 65–66

use of, 153–154

variety in, 278

innovation hypotheses, 116, 166–167, 176–178, 189–194

in Bell Labs, 121–124

carrying-out necessitating, 161, 176–177

children of, 118, 123–124, 151–153

context of, 97–98

creators testing, 95–102

definition of, 117, 135–136

grandchildren of, 124–127

within IIE, 70

implementation of, 3

of laser, 133–144

market selecting, 116–117

of microprocessor, 129–133

novelty created by, 96

of optical fibre, 143–144

overview of, 2–3, 10–11, 70, 72–73, 95–96, 115–154

propositions of, 117–154

rejection of, 119

structural conditions influencing, 97–98

subjective expectations embodied by, 118

testing of, 115–118, 123

of transistor, 121–124

uncertainty of, 118

of Viagra, 150–153

Innovation System, 104–106, 153–154

innovation team, 191–192, 254–298

innovation trajectory, 40–41

innovations. See also how questions; innovation hypotheses; The Lean Startup: How Constant Innovation Creates Radically Successful Businesses; Schumpeter, Joseph; who questions

contextualising, 14–21

definition of, 1, 30, 157, 180, 266–267

economic theory and, 12–13

emergence of, 18–19, 118–154

entrepreneurs causing, 155–196

as ex ante predictable, 118

financial assets influenced by, 11–12

financial instability and, 10–12

financial markets linked with, 11–12

four kinds of, 2–3

functions of, 156–157

The General Theory of Employment, Interest and Money on, 12–14, 299–313

happening of, 9–10, 22–67, 176–178

of integration, 7

Internet facilitated by, 7–8

machine influencing, 157, 166–167

opportunities created by, 11–12

overview of, 1

as probabilistically predictable, 118

relevance of, 310–313

as systemic phenomenon, 3–9, 37–38, 60, 66–67, 296–297

innovator-buyer-user-relationship, 117–118

An Inquiry into the Nature and Causes of the Wealth of Nations (Smith), 169–171

Institute of Computer Technology, 280–281

institutional actors, 30–34

institutions, 5, 61–62, 88, 128, 287, 289

overview of, 25–26, 271

intangible investments, 93

integration, importance of, 56–57

integration capabilities, 57, 59

integration innovations, 7

Intel Corporation, 127, 129–133, 198

Intel 4004, 131–133

internal organisation, 280–281

International Business Machines (IBM), 57, 85, 198

International Telephone and Telegraph (ITT), 145–147

International Western Electric, 145

internationalisation, of R&D, 86–87

Internet, 11, 45–46, 200, 205, 213, 222–223. See also telecoms boom and bust

financial markets influenced by, 199

Gates acknowledging significance of, 209–210

as innovation platform, 69, 97–98

innovations facilitating, 7–8, 11

overview of, 7–8, 11, 199, 205–206

transmission, 235

Internet Protocol (IP), 209–210. See also Transmission Control Protocol/Internet Protocol

“The Internet Tidal Wave” (Gates), 205–206

interpretive ambiguity, 115–117, 204–205, 224–226

interpretive framework, 204–205, 211

inventing, of share prices, 223–226

inventors, entrepreneurs distinguished from, 155, 159–162

investing, in machine, innovating compared to, 299–313

investment banks, 229–231, 242–244

investment markets, illiquid assets dealt in by, 220

investments, 11–12, 207, 216–218, 222, 262–265, 299–313

boom-type, 208–209

investors, 198–199, 208–209, 218–223

IP. See Transmission Control Protocol/Internet Protocol

iPhone, 18–19, 77

Ipswich, England, 99–100

Ireland, 209–210

irrational behaviour, 221–222, 229–231

Irrational Exuberance (Shiller), 244

irrational process, 217–218

“Is US Economic Growth Over? Faltering Innovation Confronts the Six Headwinds” (Gordon), 261

ITT. See International Telephone and Telegraph

iTunes, 78

Japan, 24–28, 95, 105, 125, 260, 274–278

overview of, 4–5, 33

Japanese Army, 125

Japanese companies, 129, 181, 265, 273, 276–278

R&D of, 91–92, 95, 173

Sony as, 91–92, 124–127

Japanese Paradox, 276–278, 281–282

Japan’s Computer and Communications Industry (Fransman), 119

Jensen, Michael, 244

Jet Propulsion Laboratory (JPL), 138

Joel, Amos, 122–123

joint creation, 290–291

JPL. See Jet Propulsion Laboratory

junk stocks, 243

just-in-time manufacture, 181

Kahn, Robert, 205

kanban. See billboard

Kao, Charles, 145–148

Kelly, Mervin J., 121–124

Kent, UK, 150–153

Keynes, John Maynard, 13–14, 201–202, 239–241, 312–313. See also The General Theory of Employment, Interest and Money; “The State of Long-Term Expectation”

on stock market, 218–222, 250–251

The Keystone Advantage: What the New Dynamics of Business Ecosystems Mean for Strategy, Innovation, and Sustainability (Iansiti and Levien), 45–59, 105

keystones, 49–53

Kindleberger, Charles, 198–200, 203–204, 239, 259

on information, 231, 242

on mania, 216–218, 229–231, 248–253

King, Mervyn, 300, 308–313

Knight, Frank, 17–18, 114, 224, 302–303

on uncertainty, 114, 204–205, 247

knowledge, 73–77, 87, 143–144, 248, 269–270, 314–315. See also “The State of Long-Term Expectation”; uncertainty

creators of, 75–87, 121–123

layer model creating, 75–87

markets for, 264–265

optical fibre influenced by, 147–148

organisation aiding, 169–175, 289

as production engine, 169–175

telecoms boom and bust influenced by, 242–244

users of, 75–87, 121–123

“Knowledge segmentation–integration in theory and in Japanese companies” (Fransman), 181

Kojima, Yoshia, 131

Korea, 91–92, 260, 274–277, 281–282

Krugman, Paul, 300, 308–313

Kuhn, Thomas, 252

labour markets, 264–265

large companies, 267–268, 280–281

large-scale integration (LSI) technology, 129–133

“The laser: its origins, applications and future” (Maiman), 139

lasers, 133–144, 149, 198

layer model, 68–70, 75–87, 89, 92, 234. See also platform, content and applications layer

boundaries shifting in, 79

companies in, 78

competitive horizontal relationships in, 80–87

entrepreneurs in, 77–78

overview of, 8–9

specialisation in, 77–78

LDDC. See Long Distance Discount Calling

LDDS. See Long Distance Discount Service

leadership, in mobile telecommunications, 106–109

lean product development, 181

The Lean Startup: How Constant Innovation Creates Radically Successful Businesses (Ries), 156–157, 182, 190, 192–195

overview of, 10, 178–188

vision in, 182–187, 189

leap-of-faith assumptions, 182

learning, 192–193

learning-by-exporting, 85–86, 281–282

legacy networks, 211

Legend Computer, 280–281

Lenovo, 280–281

Lester, Richard, 26–27

Level 3, 209–210

Levien, Roy, 6–7, 45–59, 64, 105, 109

Moore, J., drawn on by, 46–59

LG, 91–92

liberalisation, 81–82, 206–207, 251–252

Life Sciences Ecosystem, 283, 287–288

lifetime employment, 265

Lilienfeld, Julius, 120, 123

liquidity, 218–222

Loasby, Brian, 113–114

local existence, 273–274

London, England, 145

London Stock Exchange, 209–216

Long Distance Discount Calling (LDDC), 206–207, 213

Long Distance Discount Service (LDDS), 206–207

long lines operator, 81–82

long period, 244

long waves, of economic activity, 257–261

long-term investor, 222–223

long-term prospective yields, 248–253

LSI technology. See large-scale integration technology

Lucent Technologies, 232–236

machines, 157, 166–167, 299–313

macroeconomics, 71, 208–209

Made in America: Regaining the Productive Edge (Dertouzos, Lester, and Solow), 26–27

Maiman, Theodore, 135, 138–140, 149

on laser’s contributions, 198

on moment-in-being, 140–141

TRG losing race to, 141–142

mainframe computers, 198

mainstream economics, 16–17, 20–21, 71–72, 244–248, 308–313

management, of GIE, 278–279

managers, 159, 191–192, 243–244, 269–270

of business units, 59, 64

of fund, 202–203, 218–223, 229–231, 242–244

Manias, Panics and Crashes: A History of Financial Crises (Kindleberger), 216–218

Mao Tse-Tung, 83–85

marketing department, of Intel Corporation, 132–133

markets, 3, 204–205, 226, 264–265, 274–278. See also financial markets; real markets

failure of, 262–265

innovation hypothesis selected by, 116–117

sentiment of, 236–238

Marshall, Alfred, 10, 105–106, 174–175, 177–178, 288–289

Principles of Economics by, 169–171, 312–313

Marx, Karl, 255–257

masers, 134–135, 137–138, 141–142

Massachusetts, Boston in, 215

Massachusetts Institute of Technology (MIT), 26–27

Matare, Herbert, 124

Mazor, Stanley, 130–131

MCI. See Microwave Communications, Inc.

means, ends confused with, 58, 256–257

mechanical analogies, 312–313

microeconomics, 71–72

microprocessor, 129–133, 198

Microsoft, 45, 48–50, 57, 177, 205–206

Microwave Communications, Inc. (MCI), 205–207

Mikhailovich, Aleksandr, 135

millimetre waveguides, 145

minicomputers, 132–133

minimum viable product, 184

Ministry of Business, Innovation and Skills (UK), 20

Ministry of International Trade and Industry (MITI), 27–28, 33

Minsky, Hyman P., 203–204, 216–218

Mississippi, 206–207

mistakes, of lasers, 140–143

Mr Doom. See Dye, Tony

MIT. See Massachusetts Institute of Technology

MITI. See Ministry of International Trade and Industry

MNCs. See multinational corporations

Mobilcom, 251

mobile telecommunications, 106–109

mobile telephone subsector, computing subsector converging with, 107–108

modern large corporation, division of labour in, 172–175

moments-in-being, 72, 113–117, 127–128, 131–133, 140–141, 163

of laser, 140–142

money, 191–192, 220, 264–265

Moore, Gordon, 127, 129, 132–133

Moore, James F., 38–59, 64

business ecosystems pioneered by, 5–7, 40, 61

Moore’s law, 132–133

Morita, Akio, 125–127

motivation, 290–291, 295

Mowery, David, 34–36

multinational corporations (MNCs), 293–294

Nacchio, Joseph, 213

Nasdaq, 209–216

National Endowment for Science, Technology and the Arts (NESTA) Innovation Index, 93

National Grid, 215

“The National Guideline for Medium- and Long-Term Plans for Science and Technology Development, 2006–2020” (China Government), 279–280

national innovation systems (NIS), 14, 278–283

BE compared with, 7–8, 22–67

definitions of, 36–38

diffusion of concept of, 36–38

discussion on, 59–62

Freeman initiating, 24–28, 30, 105

innovation ecosystems and, 8, 22–67

institutional actors comprising, 30–34

Nelson influencing, 28–36

OECD and, 36–37

overview of, 3–5, 20, 24–38

reflections on, 7–8

National Innovation Systems: A Comparative Analysis (Nelson), 29–34

national systems of innovation, 27–28, 111

national-level global innovation ecosystem, 278–283, 289

natural equilibrium level, 216–218, 239–241

natural monopoly, era of, 80–81

NEC, 91–92

negative-positive-negative device, 126–127

Nelson, Richard, 4–5, 14–15, 19, 28–36, 62

An Evolutionary Theory of Economic Change by, 19, 29, 32

National Innovation Systems: A Comparative Analysis by, 29–34

Sources of Industrial Leadership: Studies of Seven Industries by, 34–36

NESTA Innovation Index. See National Endowment for Science, Technology and the Arts Innovation Index

network elements, 75

networks, 217, 284–285

Networks of Power (Hughes), 121

new combinations, 160–162

new entrants, to industry, 200–201, 209–216, 223–224, 233–236

BT as, 209

capacity swaps engaged in by, 229

future earnings of, 223–226

incumbents and, 236–238, 251–252

LDDS as, 206–207

MCI as, 205

of UK, 214, 217–218

of US, 217–218, 251–252

The New ICT Ecosystem (Fransman), 88–89

new innovation, 40

new products, 113–114

New York, 215, 243

niche players, 7, 49, 51–52, 55–57

Nippon Calculating Machine Corporation, 129–133

NIS. See national innovation systems

Nobel Prize, 124, 126–128, 135

Nokia-Alcatel-Lucent, 100, 106–109

noncompany facilitators, 5

noncompany players, 60, 63–64, 87–88, 100

BE paying attention to, 111

nonenterprise research organisations, 282–283

Nordic region, 106–107

Normalising Industrial Policy (Rodrick), 264

Nortel, 145, 233–236

North, Douglass, 88, 105

novelty, 17–18, 96, 255–261, 267–268

overview of, 15, 72–73, 255–261

Noyce, Robert, 127, 129–133

objectives, 60–61, 293

“The Obsolescence of the Entrepreneurial Function” (Schumpeter), 165–169

OECD. See Organisation for Economic Co-operation and Development

Ohno, Taiichi, 181

online digital software products, 179, 192–193

open innovation, 109–110, 289–291

operating leverage, 52–53

opportunism, 163–165

opportunities, 11–12

optical fibre, 143–150

DWDM influencing, 232–233

Organisation for Economic Co-operation and Development (OECD), 20, 23–24, 36–37, 272

organisational routines, biased incentives and, 242–244

organisation-level innovation ecosystem, 155–196

organisations, 88, 169–175, 188–194, 289. See also innovation ecosystems

organisms, 42

original new entrant operators, 233–236

Osterloh, Ian, 151–152

output, 301, 303–308

outsourcing, 247–248

owner-shareholders, 243–244

Palo Alto, California, 127, 138

panic, 19–20, 204–205, 241–244

Panish, Morton B., 149

Pasadena, California, 138

passage of time, 114

patents, 94–95, 140–142, 146, 150–151, 272

Pearson, Geoff, 99

Penrose, Edith, 103, 267–273, 311–315

People’s Liberation Army, 83

Perez, Carlotta, 25

performance, 271–273, 284, 287–288, 293

periodisation, of telecoms boom and bust, 200–238

perseverance, 184–185, 193

perspective, 60–61

Peter Kiewit Sons’, 209–210

Pfizer, 150–153

Phillips and Drew, 222–223

physical systems, 96

physicists, 143–144

pin-maker, 169–171, 195–196

pivot, 184–185, 193

Planck, Max, 134

platform, content and applications layer, 69, 97–98

platforms, 7, 40, 50, 69, 97–98, 291

players, 60, 105–106, 293–296. See also layer model; noncompany players; symbiotic relationships

in BE, 42–47, 49

companies as, 63–64, 287

definition of, 266–271

emergent cooperation between, 40

entrepreneurs distinguished from, 9, 155

firms as, 43–45

Huawei as, 107

in IIE, 73–77

in innovation ecosystem, 63–64, 103–104, 136–140, 266–271, 273–277

knowledge created by, 73–77

laser influenced by, 136–140

as niche, 7, 49, 51–52, 55–57

novelty involvement of, 267–268

organisation, as outside of, 193–194

overview of, 3, 63–64, 266–271

supply side taken into consideration by, 231

transistor role of, 127–128

in 2G mobile, 106–107

players and processes. See information and communication technologies innovation ecosystem

POEs. See privately owned enterprises

policies, 9, 12, 117, 264, 284–285

China case of, 12, 102, 254–298

policymakers, 287, 294, 296

positive-negative-positive device, 126–127

Post Office (UK), 147–148

“Predators and Prey: A New Ecology of Competition” (Moore, J.), 39–45

predictability, 118, 166–168, 314–315

prerequisites, 186

PricewaterhouseCoopers (PwC), 85

primary species of ecosystem, 43–45

prime mover, 25

principals, 243. See also conflict of interest

Principles of Economics (Marshall), 169–171, 312–313

privately owned enterprises (POEs), 281–282

processes, 77, 88–102, 193, 200–253, 271, 284–285. See also exogenous innovation process; how questions; players

division of labour within, 194–196

in The Lean Startup: How Constant Innovation Creates Radically Successful Businesses, 181–194

overview of, 3, 65

product development, as lean, 181. See also The Lean Startup: How Constant Innovation Creates Radically Successful Businesses

product development team, business leadership team distinguished from, 186–187

production, 169–175, 268–269

productivity, 169–171, 259

products, 113–114, 180, 182, 192–193. See also The Lean Startup: How Constant Innovation Creates Radically Successful Businesses

professional investors, 218–222

profitability, of ICT companies, 90–102

profits, 148, 198–199, 203–204, 217–218, 231, 259

Internet transmission receiving, 235

propositions, 15–21, 117–154

prospective yield, 301–313

provability, 166–168, 194–195

public information, 250

PwC. See PricewaterhouseCoopers

quantum electronics, 143–144

Qwest, 213–216, 229, 236

Rabin, M., 231

radical fringe, 308–313

radical innovation, Gordon on, 261

radios, 125–127

rational behaviour, 221–222

rational economic man, 308–313

rational process, 217–218

rationality, 244–248

R&D. See research & development

real assets, 198–199

real economy, 259

real markets, financial markets influencing, 201–203, 227–229

real performance, financial prices’ contradiction with, 202–203

real world, 32, 314–315

reasonable calculations, 303–313

regional-level global innovation ecosystems (regional GIEs), 288–289

regulators, societal-challenge global innovation ecosystem including, 294

relevant information, 226

Ren Zhengfei, 83–87

representative firm, 71–72

research & development (R&D), 69–70, 179, 269–270. See also The Lean Startup: How Constant Innovation Creates Radically Successful Businesses

of Apple, 272

in central research laboratories, 172–175, 233–236

of China, 95

as driver, 94–95

expenditure, 272

to GDP ratio, 95

of Huawei, 99

of ICT companies, 90–102

in IIE, 69–70, 88–95

as indicator, 94–95

internationalisation of, 86–87

of Japanese companies, 91–92, 95, 173

as obsolete, 289–291

overview of, 69–70

research institutes, 282–283

reseller, of telecom, 206–207

resistances, 10, 162–165, 168–169

restless system, capitalism as, 15

revenues, 86–87, 217–218, 229, 231

Ries, Eric. See The Lean Startup: How Constant Innovation Creates Radically Successful Businesses

right answers, 18–19

The Rise and Fall of American Growth: The U.S. Standard of Living since the Civil War (Gordon), 261

risk, 114, 159, 224, 302–303, 310–313

risk-taker, 159

Rodrick, Dani, 264

Rosenberg, Nathan, 29–34

routines, as organisational, 242–244

routinisation, 165–168, 194–195

rules of game, 5, 88, 97, 128

Salomon Brothers, 209–212, 246–248

Consensual Vision influenced by, 213–216

Samsung, 91–95, 276–277

savings, 216–218

scarcity of attention, 244–248

Scharfstein, D. S., 222–223

Schawlow, Arthur, 134–135, 138, 140–143

Schrag, J. L., 231

Schumpeter, Joseph, 53–54, 266–267. See also Innovation System

Business Cycles by, 160–162

Capitalism, Socialism and Democracy by, 160–162, 165–169

Darwin and, 19

on entrepreneurs, 9–10, 23–24, 155–196

ideas of, 2–3

Keynes compared with, 13–14

OECD following, 23

overview of, 2–3, 23–24

Technology Policy and Economic Performance: Lessons from Japan following, 24–28

Theory of Economic Development by, 162

Schumpeterian-evolutionary economics, 2–3, 14–21, 28–29, 60–61, 255–261, 278. See also national innovation systems

firms modeled in, 32

Science Policy Research Unit, 24

scientists, innovating technologists’ distinction with, 136–140

Scotland, 259–260

Scott, Walter, Jr., 209–210, 247

SDH. See Sonet/synchronous digital hierarchy

“Sea Change” (Gates), 205–206

secondary inventions, 116

sector GIEs. See sector-level global innovation ecosystems

sector innovation ecosystems, 23, 96, 283. See also information and communication technologies (ICT) innovation ecosystem

sector level, 68

sectoral innovation systems, 35–36

sectoral support systems, 35–36

sector-level global innovation ecosystems (sector GIEs), 283–289

sectors, 70–73

security price, 226

self-healing ring architectures, 211

sellers, 226

selling back, 229

semiconductor technology, metal oxide, 129–133

SGT. See silicon gate technology

Shackle, George, 113

shades of grey, 136–140

share prices, 213–218, 221–226. See also beauty contests

in bust, 236–238

shareholders, 198–199

Sharp, 129

Shenzhen, China, 83–84, 99

Shiller, Robert J., 213, 244

Shima, Masatoshi, 130–133

Shockley, William, 122–125, 127

Shockley Semiconductor Laboratory, 127

short waves, of economic activity, 257–261

sildenafil citrate, 150–153

silicon gate technology (SGT), 131–133

Silicon Valley, 127, 288–289

Simon, Herbert, 244–248

simplification, 128, 297–298

Singapore, 237

small- and medium-sized enterprises (SMEs), 277–278

smartphones, 107–108, 133, 260

SMEs. See small- and medium-sized enterprises

Smith, Adam, 10, 169–171, 195–196

socialism, with Chinese characteristics, 83–84

societal-challenge global innovation ecosystems, 293–296

SOEs. See state-owned enterprises

soft budget constraint, 281

software industry, 187–188

Solow, Robert, 26–27

“Some rough calculations on the feasibility of laser light amplification by stimulated emission of radiation” (Gould), 141–142

Sonet/synchronous digital hierarchy (SDH), 211

Sony, 91–92, 124–127

Sources of Industrial Leadership: Studies of Seven Industries (Mowery and Nelson), 34–36

South Sea Bubble, 248–253, 259

Special Economic Zones, 83–84

specialisation, 77–78, 169–178, 233–236

specialised institutions, 287

species, 42, 47–48

speculative financial bubbles, feedback loops causing, 213

Spitzer, Eliot, 243

Sprint, 206–207

SRs. See symbiotic relationships

stakeholders, 43–45

Standard Telephone and Cables, 145

Standard Telephone Laboratories, 145–147

Stanford University, 179

stars, 128

start-up, 180, 191–193. See also The Lean Startup: How Constant Innovation Creates Radically Successful Businesses

“The State of Long-Term Expectation” (Keynes), 13, 218–222, 301–313

state-owned enterprises (SOEs), 280–281

Stein, J. C., 222–223

stickiness, of capabilities, 78

stock markets, Keynes on, 218–222, 250–251

stock options, 242–244

stocks, Spitzer on, 243

story, 203–204, 208–209, 309

strategy, 182, 190

“Strategy as Ecology” (Iansiti and Levien), 45–59

strong competition, 274–276

structural conditions, innovation hypotheses influenced by, 97–98

subdivision of functions, 169–171, 176–178, 194

subjective expectations, innovation hypothesis embodying, 118

Suematsu, Yasuharu, 149

Supersonic Transport Aircraft Committee, 306–308

suppliers, 193–194, 213

supply side, 58–59, 229–233

Sussex University, 24

Symbian operating system, 108–109

symbiotic relationships (SRs), 69, 75–77, 268–269, 289. See also cooperative vertical relationships; horizontal competitive innovation relationships; vertical symbiotic relationships

systemic phenomenon, innovation as, 3–9, 37–38, 60, 66–67, 296–297

systems, 30, 96, 287–288, 312–313

Taiwan, 77, 260, 274–277, 281–282

takers, 163–165

TCP. See Transmission Control Protocol/Internet Protocol

TCP/IP. See Transmission Control Protocol/Internet Protocol

technical change, 13–14, 299–313

technological change, chain of expectations reinforced by, 212–216

technologies, 149–154, 211, 257–261

Technology Policy and Economic Performance: Lessons from Japan (Freeman), 24–28

telecommunications industry, Internet’s implications for, 200

Telecoms Boom, 223–224

telecoms boom and bust, 11–12, 197, 204–205, 209, 253

telecoms cable providers, optical fibre worked on by, 145

telecoms companies. See telecoms boom and bust

telecoms equipment providers, 80–87, 98–100, 107, 145, 213, 233–236. See also Huawei; telecoms boom and bust

Telecoms in the Internet Age: From Boom to Bust to … ? (Fransman), 200

telecoms liberalisation, 206–207, 251–252

telecoms operators, 79, 145, 213, 229. See also BT; telecoms boom and bust

share prices of, 213–216

telecoms service provision, liberalisation of, 81–82

telecoms shares, benefits of purchasing, 217–218

telecoms switching, 122–123

Telephone Management Corp., 207

television (TV), 127

Tennessee, 207

Terrett, Nicholas, 151

testing, 115–117, 123, 148, 150–153, 182, 192–193

through experimenting, 182–184

information feedback provided by, 118

of innovation hypotheses, 118, 190

Theory of Economic Development (Schumpeter), 162

The Theory of the Growth of the Firm (Penrose), 311–313

threshold target, 146–149

time, passage of, 114

Tokyo, Japan, 125

Tokyo Institute of Technology, 149

Townes, Charles H., 134–144

Toyota, 181

trade, 262–265

tradeable goods and services sector, 273

trade-off decisions, 186–187

transistor, 118–128

bipolar function, 124

point-contact germanium, 123–124, 126–127

Transmission Control Protocol/Internet Protocol (TCP/IP), 205

TRG, 141–142

Tulipomania, 248–253, 259

turning point, 229–236

TV. See television

UK. See United Kingdom

uncertainty, 96, 163–165, 265. See also “The State of Long-Term Expectation”

beliefs influenced by, 231

Concorde example of, 299–313

decision-making and, 17–18, 186–187

expectations and, 17–18

firms facing, 72

imagination under, 264

of innovation hypotheses, 118

Knight on, 114, 204–205, 224, 247, 302–303

of lasers, 140–143

of microprocessor, 131–133

overview of, 17–18, 114–117

policy constrained by, 117

risk distinguished from, 114, 159, 224, 302–303, 310–313

share prices influenced by, 223–226

variety influenced by, 278

unit of analysis, sector as, 70–73

unit price, 303–308

United Kingdom (UK), 24, 145–147, 150–153, 204–205, 215, 222–223

BT of, 86–87, 98–100

Department of Business, Innovation and Skills, 37–38, 283, 287–288

England in, 99–100, 145

Great Britain in, 259–262, 283, 306–308

incumbents of, 213–216

Life Sciences Ecosystem in, 283, 287–288

Ministry of Business, Innovation and Skills, 20

new entrants of, 213–218

Post Office, 147–148

US compared with, 213–218

United States (US), 107–108, 145, 223–226, 235, 251, 259–260. See also American Telephone & Telegraph; transistor

incumbents of, 251–252

mainframe computer demand in, 198

new entrants of, 217–218, 251–252

Silicon Valley in, 127, 288–289

UK compared with, 213–218

universities, 127–128, 253, 269–270

unpredictability, 131–133, 140–143

unrealistic expectations, 239–241

US. See United States

US West, 213

users, 75–87, 121–123

vacuum tube, 120–123

Vail, Theodore, 120–128

value, 52–53, 94–95, 182, 268–269, 287–288

as added, 268–269, 287–288, 296–297

Varian Associates Inc., 138

variety, 252–253, 278, 282–283

vertical specialisation, 233–236

vertical symbiotic relationships, 75–77, 97–100

Viagra, 150–153

vision, 182–187, 189, 204–205. See also Consensual Vision

Visions of Innovation (Fransman), 124

voluntaristic errors, 108–109

Wall Street, 209–216, 242–244

waste, elimination of, 181

Watson, Thomas, 198

waveguides, 145

Welker, Heinrich, 124

Western Electric, 124–126, 145

Western Tennessee, 207

who questions, 63, 66–67, 101–102, 155–196

whole startup ecosystem, 186

Winter, Sidney, 14–15, 19, 29, 32, 62

Wood, Albert, 150–153

world, 32, 149–154, 314–315

World War II (WWII), 123

WorldCom, 206–207, 209, 213–217, 251

bankruptcy of, 237

capacity swaps engaged in by, 229

Consensual Vision influencing, 236

overview of, 213

WWII. See World War II

X86 microprocessor family, 132–133

Xi Jinping, 12, 254–298

Yale University, 28

Zhongxing New Telecommunications Equipment Co., Ltd (ZTE), 82, 91–92

Zweibel, J., 222–223

Book contents

Index

Information

Index

Accessibility standard: Unknown

Why this information is here

Accessibility Information

Book contents

Index

Information

Accessibility standard: Unknown

Why this information is here

Accessibility Information

Save book to Kindle

Save book to Dropbox

Save book to Google Drive