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Total Innovation Management. Dr.eng. Dan C. Badea

Total Innovation Management. Dr.eng. Dan C. Badea

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Published by dancbadea
The present paper makes a critical analyze of the concept of Total Innovation Management – TIM, with respect to the novelty of this approach, to its domain of validity and to the present degree of its implementation in the real economic systems. Consequently, the authors proposed an original and simple mathematical model for assessing the innovative potential and offered certain practical correlations between human resources utilization “efficiency” and the number of patent application, considered as the output of the innovative production. We have also analyzed some specific data for the Romanian country profile, with the purpose of highlighting the relative strengths and weaknesses in innovation performance and its main drivers of innovation growth.
The present paper makes a critical analyze of the concept of Total Innovation Management – TIM, with respect to the novelty of this approach, to its domain of validity and to the present degree of its implementation in the real economic systems. Consequently, the authors proposed an original and simple mathematical model for assessing the innovative potential and offered certain practical correlations between human resources utilization “efficiency” and the number of patent application, considered as the output of the innovative production. We have also analyzed some specific data for the Romanian country profile, with the purpose of highlighting the relative strengths and weaknesses in innovation performance and its main drivers of innovation growth.

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Published by: dancbadea on Jun 29, 2009
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05/11/2014

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Critical aspects of the new paradigm of Total Innovation Management –On a procedure for the evaluation of the Innovative Potential
 Dan C. Badea,dancbadea@clicknet.ro CCMMM, Bucharest, Romania Alexandru Marin,alma@almaeng.ro  ALMA ENGINEERING Ltd., Bucharest, Romania Ioan Plotog,ioan.plotog@cetti.ro University POLITEHNICA of Bucharest, Romania
Abstract
The present paper makes a critical analyze of the concept of Total Innovation Management – TIM, with respect to thenovelty of this approach, to its domain of validity and to the present degree of its implementation in the real economicsystems. Consequently, the authors proposed an original and simple mathematical model for assessing the innovativepotential and offered certain practical correlations between human resources utilization “efficiency” and the number of patent application, considered as the output of the innovative production. We have also analyzed some specific data forthe Romanian country profile, with the purpose of highlighting the relative strengths and weaknesses in innovationperformance and its main drivers of innovation growth.
Introduction
The concept of Total Innovation Management – TIM is desired to be a very modern and comprehensive one (Xu,2007 and Li, 2008). The scientific approach is alike in “mechanics” problems, when the position of a materialparticle is identified in a Cartesian reference system O-xyz by its spatial coordinates. So, a first axis regards theinnovation in all human activities, technological and non-technological ones, at the level of strategies, culture,organization, market etc. The second axis take into account the innovation process at the level of all personsimplicated in the specific processes of enhancing firms competences. Third axis considers innovation in every timeperiod of activity and at all organization levels of a company. In this moment, it is important to mention that thisapproach is relative non-scientific and not so rigorous, because the variables are empirical and dimensional non-homogeneous ones. Briefly speaking, the three above mentioned axis are: activities, people, time-space, all of thesebeing, in fact, the human and material resources and the way to organize them for running successfully an economicactivity.TIM is defined as the reinvention and management of an innovation value network that dynamicallyintegrates the conception, strategy, technology (including IT base), structure and business process, culture, andpeople at all levels of an organization. TIM aims to enhance the innovation competence of the company, createvalue for stakeholders, and sustain competitive advantage (Xu, 2007).Without denying the value of this new concept of TIM, mainly drawing on innovation theory, as well as ontwo distinct areas of recent research: core competence theory and complexity theory, there are several difficult toimplement theoretical and policy implications. As declared in intentions, TIM seems to be a “journey”, not a“destination”, towards enhanced firm competence, a rather long-term, competence-based management philosophyfor achieving sustainable competitive advantage involving all people at every aspect and level of organization at alltime and across all space. The associated ideas of synergy and holistic approach, well fitted for explaining thesudden transitions and the discontinuities in the nowadays economical processes, determined us to settle somerationale evaluations of the major components of the TIM framework.
 
Focusing on our geographical area and because Romania became a member of European Union sinceJanuary 2007, we think is useful to present some factors, that strongly influence innovation performance. TheEuropean Innovation Scoreboard (EIS) has been published annually since 2001 to track and benchmark the relativeinnovation performance of EU Member States. For the EIS 2008 (
 EIS
, 2008), the methodology has been revised andthe number of dimensions was increased to 7 and it were grouped into 3 main blocks covering enablers, firmactivities and outputs (see FIG. 1).
FIG. 1: DIMENSIONS OF INNOVATION PERFORMANCE CAPTURED IN THE EIS
It is considered that the above described dimensions form the core of national innovation performance. Inaddition, there are wider socio-economic factors that influence innovation, such as the role of governments, markets,social factors and the demand and acceptance of innovation. These factors and their relationship with innovationperformance have been explored in various EIS thematic papers (
 EIS
, 2008).Patents are an intellectual property right issued by authorized bodies to inventors to make use of and exploittheir inventions for a limited period of time (generally 20 years). Patents are granted to firms, individuals or otherentities as long as the invention is novel, non-obvious and industrially applicable. The patent holder has the legalauthority to exclude others from commercially exploiting the invention (for a limited time period). In return for theownership rights, the applicant must disclose information relating to the invention for which protection is sought.The disclosure of the information is thus an important aspect of the patenting system. A patent is a policy instrumentintended to encourage the making of inventions and the subsequent innovative work that will put those inventions topractical use; it is also expected to procure information about the invention for the rest of the industry and the publicgenerally. By providing a legal framework for protecting inventions, the patent system has an important influence oneconomic performance by stimulating innovation that increases productivity. Patents are a key measure of innovation output, as patent indicators reflect the inventive performance of countries, regions, technologies, firms,etc. They are also used to track the level of diffusion of knowledge across technology areas, countries, sectors, firms,etc., and the level of internationalization of innovative activities. Patent indicators can serve to measure the output of 
 
R&D, its productivity, structure and the development of a specific technology / industry (Pinheiro-Machado, 2004).Among the few available indicators of technology output, patent indicators are probably the most frequently used.The relation-ship between patents as an intermediate output resulting from R&D inputs has been investigatedextensively. Patents are frequently viewed as an output indicator; however, they could also be viewed as an inputindicator, as patents are used as a source of information by subsequent inventors (Varsakelis, 2001 and 2006).The relation between economic growth and R&D development is constantly investigated. Substantialprogress has been made in the calculation and assessment of the economic growth parameters (Sharma, 2008).However, problems concerning the calculation or R&D development parameters are still difficult to solve,particularly regarding the conception and selection of appropriate parameters.One of the indicators is the innovative production. Specialists have suggested different equations forcalculation of this indicator (Maclean, 1993 and Teitel, 1994). In this paper, we propose another equation for asimilar purpose, with a numerical application using Romanian data, from the national R&D system.
Conceptual frame and critical aspects of the new paradigm of Total InnovationManagement
TIM is an emerging paradigm that incorporates important contributions from earlier research while emphasizing theimportance of ecosystem thinking (Xu, 2007). In FIG. 2 we depict the TIM model. From an ecosystem perspective,TIM not only emphasizes the synergistic linkage among all inherent elements, but also emphasizes that allemployees are innovators and that innovation is realized in the totality of time/space of an enterprise and beyond.
FIG. 2: THE THREE LEVELS OF INNOVATION MANAGEMENT
So, in FIG. 2, the arrangement of the concepts is interesting, but seems rather “far-fetched” and withoutoriginal interpretations, i.e.: why this process develops so and not in another manner, which are the premises for theappearance of certain sudden transitions etc. Without being as “the fox with the grapes”, we consider this type of approach as “a socialist competition”, where the activities, in our case the innovative ones, are “freely consented byall workers and according to a superior labor conscience, specific for a new employed man type …”. This concept isprobably valid only in the Chinese economical and political system.TIM may be defined as an ecological system (see FIG. 3) directed by strategy innovation. Its function is toaccumulate and enhance core competency to win sustainable competitive advantage. This approach brings other“miracle” concepts, as: synergy, eco-systems, “every worker is innovative …”, innovation process is continuous intime and space, inside and in the “activity perimeter” of every company. Again, every thing is “acting global, fully

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