Modern development of economics and science implies the continuity and cyclicality of the innovation process. Its detailed design makes it possible to further optimize the production output and analyze the compliance of the innovation with consumer expectations. The innovation cycle includes several major phases, stages and their stages, which are interconnected. Building a strategy that moves production from innovation to product quality to cost provides significant competitive advantages.
Definition
The innovation cycle is understood as a model that describes the process of introducing innovation from the initial stage (mastering information) to the final stage - consumption of the finished innovative product. In modern literature there is no generally accepted concept for this process. There are 2 main approaches to this problem: general economic (description of the institutional structure for the introduction of future technologies) and within the framework of the development of a separate organization.
There are several types of models used in innovation management:
- Linear. It is one of the first (proposed in the middle of the 20th century) and is a linear sequence that describes the step-by-step innovation process from the formulation of an idea to the sale of products. Its disadvantages are the lack of consideration of market demand for innovations, and the focus mainly on fundamental research, which does not correspond to the current stage of development of science and technology.
- Nonlinear. According to this model, there is constant interaction between all stages and institutions: the exchange of information flows, investments, human and material resources. In modern organizations, there is no determinism of innovation activity, the functions of various institutions often overlap and complement each other.
- Grocery. It is based on the life cycle of a product and is a description of a series of works, the end result of which is embodied in the form of a new or improved product introduced to the market.
- Procedural. Among the subspecies, organizational, managerial and technological models of the innovation cycle are distinguished.
The use of the above models allows for analysis, planning of systematic work on the release of innovations and management of innovative activities of enterprises. In a narrower sense, the life cycle of an innovation is the period of time during which it brings some benefit to the manufacturer or seller.
Phases of the innovation cycle
In general, there are 5 major phases of the innovation life cycle:
- Studying basic patterns (basic research).
- Finding practical solutions to problems (applied research).
- Design process.
- Development and production.
- Consumption.
Detailed features of the structure of the innovation cycle depend on the type of innovation. This process can be accompanied by various activities and financial components.
Stages
The main stages of the product innovation cycle include the following:
- Development (market research, R&D, testing, design, technological and organizational pre-production and other stages). This period is characterized by active capital investment.
- Start of sales. At this stage, the product begins to make a profit (benefit). The most important factors are advertising policy, inflation rate.
- Expansion of sales areas. Growth in sales until market saturation.
- Sales level stabilization. Demand in the market is still active, but its decline is already planned.
- Reducing the volume of sales. When expanding the range and reorienting the market, the last 2 stages may be absent.
To describe an innovative operation (technology), 4 stages are distinguished:
- development;
- implementation;
- market stabilization;
- decrease in the volume of sales (its natural fall).
Durationand the number of stages, their influence on the development of the cycle is determined by the characteristics of a particular innovation.
Steps
At each stage, there are several stages that characterize a certain type of work being carried out. For the product model, the stages of the innovation cycle are:
- R&D, marketing research (forecast demand and commercial success). Investments in the latter types of work can be commensurate with those for research and technical development, since the final result of the activity depends on it.
- Pilot production (production of a sample of a new solution).
- If necessary, refinement, correction of initial ideas based on the results of the previous stage.
- Mass production of new products.
- Trademarking.
The following similar stages are distinguished for the organizational, managerial and technological model:
- development of managerial decisions (R&D for technology);
- testing/trial operation;
- introduction into the organizational/general technological process;
- documentation, security patents, licenses for innovation.
The final stage for all models is the implementation of innovation and its improvement in the process of use by consumers.
Basic Research
Basic research is the most important in managing the technologies of the future. Features of their implementationare:
- the final result and the resource costs for obtaining it are not known in advance;
- exploratory research at the initial stage is carried out without correlation with practical application;
- individual nature of work;
- discovery of general patterns or categories, substantiation of theories and principles;
- formulation of results in scientific publications and reports, production of prototypes.
Fundamental and applied research may not be carried out if the available body of knowledge allows the formation of innovative ideas.
Applied research
Applied research is based on fundamental research. A selection of results that may be suitable for practical implementation and derivation of certain benefits is carried out. A technical and economic justification for the use of new products and technologies is being carried out. The result of activities at this stage can be:
- technological regulations;
- standards and methodologies, model standards;
- sketch projects;
- preliminary plans, including drawings, calculations, layouts;
- technical specifications, requirements and other scientific and technical recommendations.
At this stage, as part of the innovation cycle, laboratory and pilot production tests are carried out that determine long-term development trends, and research work is summarized and evaluated.
Design
Based onthe results obtained in the process of applied research, the preparation of documentation (technical and economic calculations, diagrams, explanatory notes, estimates and calculations, schedules, etc.) begins for the production of new products or technologies. Developments at this stage are distinguished by their types: design, technological, organizational, design and survey, production of the first product samples for testing.
These works are preparatory before the mass launch into production. This stage is often combined with the previous one in R&D and can be defined as a process whose main goal is to realize the expectations and requirements of consumers in innovative products. Here such parameters of the innovation cycle are already becoming known, such as:
- product quality and competitiveness;
- development, production and market entry times;
- possibility of product modification;
- project budget.
Production
At this stage, 2 steps can be distinguished:
- Production of an experimental batch or single copies. (industrial designs), commissioning (commissioning) of technical facilities.
- Economic development of production. At this stage, the full design capacity of manufacturing (material and energy intensity, labor productivity, cost, capital productivity) and the use of innovation is achieved.
This stage may include the following work:
- development of a technological project;
- approval of technical specifications, factory standards;
- production of serial equipment and tools;
- retraining or advanced training of personnel for innovation;
- construction and installation works;
- changes in pay or organizational structure.
Management
Innovation cycles are managed in two main directions:
- at the state level;
- at the micro level within the organization.
State regulation is carried out using the following tools:
- Institutions whose activities are related to innovation processes (ministries of economic development, finance, education, the Center for Strategic Research, organizations for the protection of intellectual property rights and others).
- Legislative acts, federal and sectoral regulations.
- Federal funded educational and research organizations.
- Infrastructural facilities (technoparks and technopolises, information technology centers, science cities, business incubators and others).
- Market institutions for commercialization (venture funds and companies, leasing and insurance firms).
Management at the organization level is carried out at all stages of the innovation life cycle and consists of elements such as:
- forecasting, determining the most promising development paths and the need for innovation;
- planning stages and providing them with resources;
- analysis of existing problems and the effectiveness of innovation;
- development of alternative technical solutions and selection of the best of them;
- development of a managerial decision;
- monitoring results.
