Management of R& D and Innovation
MS 58 Free Solved Assignment
Q1. What is technological inertia? Explain the reasons for technological inertia, preventing the implementation of new technologies?
Ans. The technological innovation system is a concept developed within the scientific field of innovation studies which serves to explain the nature and rate of technological change.
A Technological Innovation System can be defined as ‘a dynamic network of agents interacting in a specific economic/industrial area under a particular institutional infrastructure and involved in the generation, diffusion, and utilization of technology
The approach may be applied to at least three levels of analysis: to a technology in the sense of a knowledge field, to a product or an artifact, or to a set of related products and artifacts aimed at satisfying a particular (societal) function’.
With respect to the latter, the approach has especially proven itself in explaining why and how sustainable (energy) technologies have developed and diffused into a society, or have failed to do so.
The concept of a technological innovation system was introduced as part of a wider theoretical school, called the innovation system approach.
The central idea behind this approach is that determinants of technological change are not (only) to be found in individual firms or in research institutes, but (also) in a broad societal structure in which firms, as well as knowledge institutes, are embedded.
Since the 1980s, innovation system studies have pointed out the influence of societal structures on technological change, and indirectly on long-term economic growth, within nations, sectors or technological fields.
MS 58 Free Solved Assignment
The purpose of analyzing a Technological Innovation System is to analyze and evaluate the development of a particular technological field in terms of the structures and processes that support or hamper it.
Besides its particular focus, there are two, more analytical, features that set the Technological Innovation System approach apart from other innovation system approaches.
Firstly, the Technological Innovation System concept emphasizes that stimulating knowledge flows is not sufficient to induce technological change and economic performance.
There is a need to exploit this knowledge in order to create new business opportunities.
This stresses the importance of individuals as sources of innovation, something which is sometimes overseen in the more macro-oriented, nationally or sectorally oriented innovation system approaches.
Structures involve elements that are relatively stable over time. Nevertheless, for many technologies, especially newly emerging ones, these structures are not yet (fully) in place.
For this reason, mostly, the scholars have recently enriched the literature on Technological Innovation Systems with studies that focus on the build-up of structures over time.
The central idea of this approach is to consider all activities that contribute to the development, diffusion, and use of innovations as system functions.
These system functions are to be understood as types of activities that influence the build-up of a Technological Innovation System. MS 58 Free Solved Assignment
Each system function may be fulfilled in a variety of ways. The premise is that, in order to properly develop, the system should positively fulfil all system functions. Various ‘lists’ of system functions have been constructed.
Authors like Bergek et al., Hekkert et al., Negro and Suurs give useful overviews. These lists show much overlap and differences reside mostly in the particular way of clustering activities. An example of such a list is provided below.
Note that it is also possible that activities negatively contribute to a system function. These negative contributions imply a (partial) breakdown of the system.
In particular, domestic instability has been shown to exert downward pressure on innovation systems, while international threats and national security alliances have a significantly positive effect on national innovative performance.
Q 2. “Corporate function of Research & Development (R&D) is a managerial rather than technical function.” Discuss. Also identify the contents of this function.
Ans.Research and development is the generation of new knowledge. In a business context, it is an activity that companies undertake in order to develop new products, processes or services, or improve those that already exist. MS 58 Free Solved Assignment
In order to do this, businesses often take on risk. This is because uncertainties exist around if what they are attempting is technologically feasible, or, more commonly, they don’t know how they will achieve their objectives in practical terms.
R&D is an essential function for many businesses. Launching new offerings or improving existing ones is a way for a business to remain competitive and make profit.
When developing a new product, process or service, or refining an existing one, R&D is one of the earliest phases.
Experimentation and innovation is often rife at this stage, along with risk. The R&D cycle often begins with ideation and theorising, followed by research and exploration and then into design and development.MS 58 Free Solved Assignment
Research and development occurs across a wide range of sectors and industries, and in companies of all sizes.
These range from intensive R&D industries that rely heavily on R&D projects like pharmaceuticals, life sciences, automotive, software and technology to areas like food and drink.
R&D also plays a major role in the construction industry, in particular in manufacturing and engineering.
Types of research and development :
All R&D tends to start with ideas and theories – this can relate to identifying issues or new opportunities.
The R&D process then focuses on exploring and researching those ideas, seeing what’s feasible. There are two main types of research within R&D-basic research and applied research.
Basic research is all about acquiring knowledge and using it to build understanding and intelligence that a business can use to its advantage. This knowledge can be the foundation for further R&D projects and feed into strategic business decisions.
Applied research is a lot more defined, and often looks to achieve a specific objective. This could be using a new technology, reaching a new market, improving safety or cutting costs. Applied research is often what leads to the development phase.
The design and development phase is all about taking an idea and making it into a product or process. MS 58 Free Solved Assignment
Effectively, it’s about translating the research into a commercial product or service. It often involves designs, prototyping, trials, testing and refinement.
Prototyping is key to the development phase as it allows you to identify and overcome issues, and improve the design.
Eventually, for those in manufacturing development, you move into manufacturing trials where you look to produce the product on a larger scale.
R&D and product development often go hand in hand. Rapid changes in consumer demands and emerging technologies means there’s always a need to adapt.
Before developing new products, you need a deep understanding of the market and the user needs. This lays the groundwork for the development of the new product.
Various concepts are generated and tested at the outset. These can then be prototyped for further research and testing. MS 58 Free Solved Assignment
Improving existing products and processes
The continual evaluation of existing products, services and processes is also a key part of R&D. If a product, service or process is no longer profitable or adding value in a market then it risks stagnating.
It could also be that technology has been developed that could facilitate improvements that may cut costs, make efficiency gains or improve safety. This can include improvements to the manufacturing and production processes of the product.
Legislative changes or shifts in user wants can also mean a product or process must change or evolve to remain viable.
Q 3 “The human resource management practices that faster innovation and creativity for effective R&D have four dimensions.” Explain these dimensions.
Ans. Human resource management is a vast area that covers the entire expanse of an organization. Given its vastness and the impact of its coverage, we must classify it into different dimensions for ease of understanding and operational efficiency.
While many sub-disciplines and processes exist within the gamut of HR and various models to categorize them, one of the most common ways to do it is by creating the four dimensions of human resource management practices as defined by Noe et al. (2010).
Most of the HR management courses online will cover them.
This element covers everything that relates to company culture, compliance or regulation issues, the mission and vision of the organization, and so on.
It means that the environment or climate that exists within the company is the primary responsibility of human resources. MS 58 Free Solved Assignment
Managing it in a way conducive to encouraging good performance from the workforce is what HR does.
The internal environment of a company is bound to have a substantial effect on every employee. It is necessary to see each of these elements in detail.
Impact of Culture On Employee Performance :
The culture of a company has a powerful impact on every employee. Various factors make up the culture of a company.
The manner in which a company treats its employees and what working environment it provides is an important factor. A
nother important aspect that decides a company’s culture is its employee makeup. Companies must be inclusive and try to employ people from different religions, races, and genders. MS 58 Free Solved Assignment
A good mix of people from different backgrounds helps to bring more perspectives.
People need to enjoy their work. When workers enjoy what they do, their productivity is much better.
Companies should try to make work a game that all can enjoy. This will bring more creativity and ensure better interaction between employees.
The decisions made by top management also become part of a company’s culture. Its mission, vision, and values must inspire staff members to work for the company and for a more significant cause that positively impacts society.
An excellent corporate culture is where every employee gets an opportunity to exhibit their skills. All workers must get a chance to perform and grow.
The importance of studying human resource management is that these courses will teach them how to bring that culture into an office and enlighten everyone with its values.
HR managers should also ensure that new employees are made to feel comfortable by others and given guidance about how to be part of a team. Companies should develop a culture of helpfulness in the workplace. MS 58 Free Solved Assignment
Being compliant with both internal and external regulations and directions is a necessity for every company. HR managers must ensure that compliance training is given to all employees for various reasons.
When workers are offered this training, companies can rest assured that employees will follow them.
This will help in reducing expenses that are likely to be incurred due to fines.
This is the answer for someone asking why it is important to study human resource management. Companies will also save their reputation when employees follow all rules and regulations.
One of the benefits of studying human resource management is that it will teach students the importance of staying updated with the latest regulations.
HR officials must regularly inform employees about the latest compliance standards and other rules. There are specific industries in which laws can change very often.
HR can offer online training classes on compliance so that everyone knows the latest regulations. It will help the company to avoid any penal action.
Passing on regular information about rules and regulations helps companies to avoid any damage to their reputation. Nowadays, it is not just losing reputation among customers that should worry companies. MS 58 Free Solved Assignment
A company known to violate rules will not be able to attract promising talents to work for them.
Today’s youngsters are very much aware and concerned about such issues. Employees will also be happy to know that their company will not face closure due to non-compliance issues.
Q 4 Discuss the provision for funding of R&D projects under various schemes of the Government of India. Also, critically comment upon them.
Ans. Innovation and development is a vital driver of economic growth and stability, ushering in economic and social prosperity.
New ideas and products act as catalysts for a set of new goods and services that could change the economy and increase employment.
Further, businesses are better positioned to compete in the global marketplace with constant R&D investments at the proper levels.
Therefore, to get the best competitive advantage and keep the business continually growing, investment in research and development must be continuously made.
In this article, we look at some of the ways of securing funding for research and development of the new product or a new process or new systems.
SIDBI Revolving Fund for Technology Innovation (SRIJAN Scheme)
SIDBI provides financial assistance to MSMEs towards development, scaling up, demonstration and commercialization of innovative technology-based projects.
The financial assistance is provided in the form of early-stage debt funding on softer terms for development, demonstration and commercialization of new innovations in emerging technological areas, un-proven technologies, new products, process, etc.
which have not been successfully commercialized so far. The maximum loan amount provided is generally not more than Rs.100 lakhs per project at a concessional rate of interest of not more than 5% per annum. MS 58 Free Solved Assignment
Assistance up to 80% of the total project cost is normally considered and in certain cases, higher amounts of assistance are considered based on the innovative content of the project. Costs covered under the SRIJAN Scheme include:
• Capital expenditure e.g. factory shed for the project, plants & machinery, utilities, etc.,
• Intangibles e.g. patents/ copyrights / R&D / technology transfer fee / licensing/Marketing
• Working capital margin
• Pre-operative expenses
• Manpower cost
• Contingencies / Any other heads required for the project
A maximum loan repayment period of 6 years is available including moratorium. Security to be given to the bank for the loan are the first charge on assets (both moveable/immoveable) created / to be created under the project, first / pari passu / second charge on other assets of the unit depending upon prior charge created/ to be created, personal guarantees of promoters
Know more about SIDBI SRIJAN Scheme MS 58 Free Solved Assignment
Assistance from Technology Development Board
The Technology Development Board aims to accelerate the development and commercialization of indigenous technology or adapting imported technology to wider domestic application.
The Board plays a pro-active role by encouraging commercial enterprises to take up technology-oriented projects and provides financial assistance in the form of Equity, Soft loans, or Grants.
The loan or equity capital provided by TDB to industrial concerns and financial assistance to research and development institutions is provided at a simple interest of 5 per cent per annum and TDB does not levy processing, administrative or commitment charges.
The quantum of loan will be, normally, limited up to 50 per cent of the approved project cost. The duration of the project should not generally exceed three years.
The loan is payable in instalments that links to risk-associated milestones in accordance with the terms and conditions of the loan agreement.
The refund of the loan and payment of interest commence one year after the project completion and the full loan amount is recoverable in five years thereafter.
In some cases, TDB may have nominee director(s) on the Board of Directors of the assisted industrial concern. MS 58 Free Solved Assignment
TDB may also subscribe by way of equity capital in an industrial concern, on its commencement, start-up and/or growth stages.
The full Board of TDB decides the equity subscription. It is up to 25 per cent of the approved project cost provided such investment does not exceed the capital paid-up by the promoters.
The pre-subscription conditions include that the promoters should have subscribed and fully paid up their portion of the share capital.
Grants by TDB: TDB may also provide financial assistance by way of grants and/or loans to industrial concerns and R&D institutions engaged in developing indigenous technology.
TDB is not to be considered a substitute for funding by the Government or other appropriate institutions. The sanction of grants is decided by the full Board of TDB and is sanctioned in exceptional cases. Royalty may be levied in case of grant assistance.
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