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1 Beneath the surface 1 Introduction 1 Technology in development - myths and realities 3 From myths to building blocks: understanding technical capability infirms 9 Innovation management in follower-firms 14 Conclusion: growing value-added in firms is the core objective 19 2 Innovation success in follower-firms 20 Introduction 20 Tanzania Breweries Ltd 20 Hero Cycles: success through flexible specialization 24 Grupo Vitro 27 The Indian software industry. miracle in the making or a hightechnology 'sweat-shop'? 32 Cemex 37 Conclusions 41 3 Changing policies for science and technology: governments and markets 44 Introduction 44 Understanding technology and industrial development 46 What worked 48 Comparing national policy environments. what matters forfirms? 56 Conclusions 61 4 Innovation on the shop-floor 63 Introduction: why is shop-floor innovation key in technology-followers? 63 Wages as a source of competitiveness 64 Going beyond wage competitiveness. the new manufacturing as road-map 67 Making innovation happen on the shop-floor - what do we know? What do we not know? 80 Looking beyond thefirm 82 Conclusions 83 5 From process to product and proprietary 85 Introduction 85 Three 'ideal types' offirms 86 What explains the differences - state, culture or firm? 93 Capturing innovation rents by going proprietary 98 Conclusion. what does it take? 108 6 Managing R&D in technology-followers 109 Introduction 109 What is R&D? 109 Why do R&D in a technology-follower? 126 The role and organization of R&D in technology-followers 130 Conclusions: organizing for effective R&D in followers 135 7 Design leadership for technology-followers 137 Introduction 137 Why do good design? 138 What is good design? Moving up the value-chain with 'soft' quality 142 Building design capability is hard 145 Conclusions. from R&D to D&D 152 8 Building a culture for innovation 153 Introduction 153 National culture and cultural stereotypes 154 Moving beyond the stereotypes 160 Follower-firms: organizing against the grain 164 Building afirm culture for innovation 166 Conclusions 172 9 Organizing for innovation. from followers to leaders 173 Introduction 173 How can 'drones' get clever - organizing for innovation 173 Building a technology strategy for innovation 182 Policy implications 189Library of Congress Subject Headings for this publication: Technological innovations Management, International business enterprises Management, New products Management, International trade, Competition, International