Question 1: What do you understand by innovation within the education sector?

Question 2: Apply Braun's principles to your university or college.

Question 3: Consider the innovation activities of the design spectrum. How much of the range would involve patents?

Question 4:'Technology changes, The laws of economics do not,' Discuss the implications and validity of this statement.

Case study Innovation on the production line This case study examines a new paperboard material ing. The paper and board packaging industry is a with unusual properties that may enable the paper major supplier to the food industry. It is characterised packaging industry to compete with plastic packag- as a high-volume commodity product. This case 180 illustrates the role of innovation and product develop- than a single sheet would allow.' These layers are ment within a process industry and how, in such then agitated at a higher rate than standard paperindustries, innovation occurs on the production line board, creating a unique orientation of the fibres rather than in laboratories. within the material and a texture that is more corru- the total costs to the customer are more than double packaging investments. Chester Packaging must disthat of traditional plastic and foil packaging. Operating cover which product applications of the technology in an industry where decisions are so often based on will deliver a return on its investments and efforts in costs has made adoption for the new packaging dif- the innovation process. For example, using the techficult. To accelerate the diffusion process, Chester nology to create increased indentations ( 5mm depth), Packaging is targeting leading pharmaceutical com- a cereal box could be developed for Kellogg's, featurpanies for the adoption of the new packaging. In ing the brand's signature trade-mark cockerel proaddition, Chester Packaging has negotiated a further truding from the pack. This would create unique licence with Billerud, allowing it use of the material in packaging, differentiating Kellogg's from its competifood and drinks packaging. tors on the shelf. Due to the nature of the product, it Findingcustomersposesfewerchallengesthantheblisterpack.mayalsobeanapplicationofthetechnologythat The blister pack product category is an obvious potential customer. However, legislation is tight Conclusions around pharmaceutical products and this extends to This case illustrates typical risks and issues freits packaging. Consequently, change tends to be quently experienced when making investment decislow and decision making cautious. Also, a key ques- sions in process industries. This is particularly true for tion facing a firm considering adopting the product is commodity industries, such as packaging, where whatadvantagewillitgiveme?Bytargetinglargepharmaceuticalfirms,Chesteremphasisisplacedoncostsandefficiencyofpro-duction.Thisemphasisoftencanleadtoanempha- Packaging is seeking a lead user to adopt the forma- sis on short-term decision making with innovation ble board for its blister packs and, in turn, to help the being sidelined. technology cross the chasm and gain wider market Whilst Chester Packaging's experiments and protoadoption. This is the most difficult step in making the typing have demonstrated the product capabilities to transition between a few early adopters and the large be superior to existing packaging, the changes mass markets of pragmatists (Moore, 2004). To required for firms in adopting the technology may be achieve this aim, Chester Packaging will need to too great. Such changes go beyond those of the pro- effectively communicate the benefits of the product duction processes for the firm and include consumer relative to existing packaging and to bridge the gap perceptions of the new product. Marketing communibetween technological uncertainty and market need. cations will be required from Chester Packaging to It will also need to demonstrate that the benefits of demonstrate the superiority of the new product to the new packaging outweigh the significant increase potential customers and to diminish any concerns those of traditional blister packs. This increase comes innovation will cause changes to its existing supply from the new materials and more complex produc- chain and whether new business relationships need tion process, as well as the investments in licences, to be nurtured that will help it develop the required toolingandtheinevitablenewmarketingcommuni-cationsforthenewproduct.supplychain.Furthermore,negotiatingfinancialarrangementsandagreeingcosts,marginsandroy- cationsforthenewproduct.Appreciatingandunderstandingthepotentialarrangementsandagreeingcosts,marginsandroy-altypaymentswillhelpthefirmachievetherightmix product applications of a technology and uncovering of partner firms to build its business model. As the whether markets will embrace these products, is criti- present case demonstrates, such agreements and cal in the innovation process. Firms in certain markets contracts take time to secure and are often over(i.e. toothpaste) appear more receptive to making looked in models of innovation