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By Wilfried Buchholz

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Extra resources for Proof Theory of Impredicative Subsystems of Analysis

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1 Definitions of technology and innovation Technology is a replicable artefact with practical application, and the knowledge that enables it to be developed and used. Technology is manifested in new products, processes, and systems, including the knowledge and capabilities needed to deliver functionality that is reproducible. Innovation is much more than invention—the creation of a new idea and its reduction to practice— and it includes all the activities required in the commercialization of new technologies (Freeman and Soete 1997).

Essentially, innovation is the successful commercial exploitation of new ideas. It includes the scientific, technological, organizational, financial, and business activities leading to the commercial introduction of a new (or improved) product or service. Firms compete successfully when they offer new, better, and/or cheaper products and services, which their customers can use to advantage, and which their competitors cannot provide. Competitive advantage therefore derives from the ability to make and do things more cheaply and better, or to make and do new things.

Specific focus will be placed on the move from mass to ‘lean’ and ‘agile’ production and consumption and the combination of operation capacities with those of design and development, and the integration of supply chains. MTI and operations are discussed in Chapter 8. The eventual aim of MTI is the delivery of value, and the process of commercialization—that is, obtaining returns from innovation investments—is a central element of MTI. Appropriating value from firms’ investments in technological innovation involves consideration of intellectual property rights (IPR), licensing, the creation of technical standards, speed, and secrecy, and the ownership of ‘complementary assets’.

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