Download and Read online, DOWNLOAD EBOOK, [PDF EBOOK EPUB ], Ebooks

download, Read Ebook EPUB/KINDE, Download Book Format PDF

(eBook PDF) Innovation Management and New Product

Development 5th

OR CLICK LINK
http://ebooksecure.com/product/ebook-pdf-
innovation-management-and-new-product-
development-5th/

Download More ebooks [PDF]. Format PDF ebook download PDF KINDLE.
Full download test bank at ebooksecure.com
More products digital (pdf, epub, mobi) instant
download maybe you interests ...

(eBook PDF) Product Design and Development 7th Edition

http://ebooksecure.com/product/ebook-pdf-product-design-and-
development-7th-edition/

(eBook PDF) Strategic Management of Technological

Innovation 5th

http://ebooksecure.com/product/ebook-pdf-strategic-management-of-
technological-innovation-5th/

(eBook PDF) Translational Medicine in CNS Drug

Development, Volume 29

http://ebooksecure.com/product/ebook-pdf-translational-medicine-
in-cns-drug-development-volume-29/

Continuity and Innovation: Canadian Families in the New

Millennium (eBook PDF)

http://ebooksecure.com/product/continuity-and-innovation-
canadian-families-in-the-new-millennium-ebook-pdf/
(eBook PDF) Business Communication Process Product 5th
Canadian

http://ebooksecure.com/product/ebook-pdf-business-communication-
process-product-5th-canadian/

The Technology of Wafers and Waffles II: Recipes,

Product Development and Knowhow 1st Edition - eBook PDF

https://ebooksecure.com/download/the-technology-of-wafers-and-
waffles-ii-recipes-product-development-and-knowhow-ebook-pdf/

Discovery and Development of Antidiabetic Agents from

Natural Products: Natural Product Drug Discovery -
eBook PDF

https://ebooksecure.com/download/discovery-and-development-of-
antidiabetic-agents-from-natural-products-natural-product-drug-
discovery-ebook-pdf/

(eBook PDF) The New Strategic Brand Management 5th

Edition

http://ebooksecure.com/product/ebook-pdf-the-new-strategic-brand-
management-5th-edition/

(eBook PDF) Innovation Management: Effective strategy

and implementation 3rd ed. 2017 Edition

http://ebooksecure.com/product/ebook-pdf-innovation-management-
effective-strategy-and-implementation-3rd-ed-2017-edition/
 Innovation Management and New Product Development

and New Product Development

Innovation Management
Paul Trott
Innovation Management
Fifth Edition

Most of the significant inventions of the past two centuries have not come from flashes of inspiration but
from collaborative endeavours. This book argues that innovation is a management process that continues
to be at the forefront of economic and political debate about how to improve the competitiveness of
economies and firms.
and New Product Development
Innovation Management and New Product Development, Fifth Edition, offers an accessible and Fifth Edition
authoritative multi-functional perspective on innovation management and new product development. Its
clear and informed coverage of the management processes of new product development, coupled with a
practical orientation of taking you through real-life challenges and dilemmas, results in a book that brings
together the most up-to-date and accessible discussion of the literature in this area, as well as a wealth of
examples and illustrations in every chapter.

New to this edition

• Thoroughly revised and updated chapters including new coverage of entrepreneurship,
process innovation and counterfeit and imitation goods.
• New case studies on CSI and genetic fingerprinting, Sony Blu-ray as well as updated case
studies including Apple, eBay and Gore-Tex®.
• New ‘Innovation In Action’ feature in every chapter – practical examples of innovation in
action that help you to link theory with practice.

Online resources available at www.pearsoned.co.uk/trott include PowerPoint slides and an Instructor’s

Manual for lecturers as well as multiple choice questions for every chapter, annotated weblinks and
answers to all ‘Pause for Thought’ questions for students.

This book is suitable for undergraduates and postgraduates on a wide range of courses such as marketing,
strategic management, operations management, business studies and engineering. Fifth Edition

About the Author

Trott
Paul Trott is Professor of Innovation Management at the Business School, University of Portsmouth
and Professor of Innovation Management & Entrepreneurship at The Technical University of Delft, The
Netherlands. He is the author of many articles and papers in the area of innovation management, and
is co-author of the The New Penguin Business Dictionary. Paul Trott

www.pearson-books.com
Front cover image: © Getty Images

CVR_TROT6561_05_SE_CVR.indd 1 06/09/2011 09:46

 Contents

Preface xix
Foreword by Professor Guus Berkhout xxiii
Acknowledgements xxiv
Plan of the book xxviii

Part One Innovation management 1

1 Innovation management: an introduction 2

The importance of innovation 4

The study of innovation 6
Recent and contemporary studies 9
The need to view innovation in an organisational context 10
Individuals in the innovation process 11
Problems of definition and vocabulary 12
Entrepreneurship 12
Design 13
Innovation and invention 15
Successful and unsuccessful innovations 16
Different types of innovation 16
Technology and science 18
Popular views of innovation 20
Models of innovation 20
Serendipity 21
Linear models 21
Simultaneous coupling model 23
Architectural innovation 23
Interactive model 24
Innovation life cycle and dominant designs 25
Open innovation and the need to share and exchange knowledge
(network models) 25
Discontinuous innovation – step changes 27
Innovation as a management process 28
A framework for the management of innovation 29
New skills 31
Innovation and new product development 32
Case study: The success of the iPod and iPhone raises the licensing question
for Apple . . . again 33

vii
Contents

Chapter summary 40
Discussion questions 40
Key words and phrases 41
References 41
Further reading 44

2 Economics and market adoption 46

Innovation in its wider context 48

The role of the state and national ‘systems’ of innovation 50
How national states can facilitate innovation 51
Fostering innovation in the United States and Japan 52
The right business environment is key to innovation 54
Waves of innovation and growth: historical overview 54
Fostering innovation in ‘late-industrialising’ countries 57
Innovation within the 25 EU states 58
Improving the innovation performance of the EU 60
The times they are a changing: how frugal innovation is providing a future
path for firms in emerging markets 61
Innovation and the market 61
Innovation and market vision 62
Innovative new products and consumption patterns 62
Marketing insights to facilitate innovation 64
Lead users 66
Innovation diffusion theories 67
Adopting new products and embracing change 69
Market adoption theories 71
Case study: How three students built a business that could affect
world trade 71

Chapter summary 77
Discussion questions 78
Key words and phrases 78
References 78
Further reading 80

3 Managing innovation within firms 82

Organisations and innovation 84

The dilemma of innovation management 84
Managing uncertainty 85
Pearson’s uncertainty map 86
Applying the uncertainty map in practice 88
Managing innovation projects 89
Organisational characteristics that facilitate the innovation process 91
Growth orientation 93

viii
 Contents

Organisational heritage and innovation experience 94

Vigilance and external links 95
Commitment to technology and R&D intensity 95
Acceptance of risks 95
Cross-functional cooperation and coordination within organisational structure 95
Receptivity 96
Space for creativity 96
Strategy towards innovation 96
Diverse range of skills 97
Industrial firms are different: a classification 99
Organisational structures and innovation 101
Formalisation 101
Complexity 102
Centralisation 102
Organisational size 103
The role of the individual in the innovation process 103
IT systems and their impact on innovation 104
Management tools for innovation 107
Innovation management tools and techniques 107
Applying the tools and guidelines 109
Case study: Gore-Tex® and W.L. Gore & Associates: An innovative company
and a contemporary culture 110
Chapter summary 114
Discussion questions 114
Key words and phrases 115
References 115
Further reading 117

4 Innovation and operations management 118

Richard Noble, University of Portsmouth

Operations management 120

The nature of design and innovation in the context of operations 121
Design requirements 122
Design and volumes 124
Craft-based products 126
Design simplification 127
Process design and innovation 128
Innovation in the management of the operations process 129
Triggers for innovation 130
Design of the organisation and its suppliers – supply chain management 135
Business process re-engineering (BPR) 138
Operations and technology 139
Innovation as an operations process itself 144
Case study: Novels, new products and Harry Potter 145
Chapter summary 151

ix
Contents

Discussion questions 151

Key words and phrases 151
References 152
Further reading 153

5 Managing intellectual property 154

Intellectual property 156

Trade secrets 159
An introduction to patents 160
Novelty 161
Inventive step 162
Industrial applications 162
Exclusions from patents 162
The patenting of life 163
Human genetic patenting 163
The configuration of a patent 164
Patent harmonisation: first to file and first to invent 165
Some famous patent cases 166
Patents in practice 167
Expiry of a patent and patent extensions 167
Patent extensions 169
The use of patents in innovation management 170
Do patents hinder or encourage innovation? 170
Alternatives to patenting 172
Trademarks 173
Should satisfy the requirements of section 1(1) 175
Distinctive 175
Non-deceptive 175
Not confusing 175
Brand names 176
Using brands to protect intellectual property 177
Exploiting new opportunities 178
Brands, trademarks and the internet 179
Duration of registration, infringement and passing off 179
Registered designs 180
Copyright 181
Remedy against infringement 183
Damages 183
Injunction 184
Accounts 184
Counterfeit goods and IP 184
Case study: Pricing, patents and profits in the pharmaceutical industry 185
Chapter summary 189
Discussion questions 189
Key words and phrases 189
References 189
Further reading 191

x
 Contents

Part Two Turning technology into business 193

6 Managing organisational knowledge 194

The battle of Trafalgar 196

Technology trajectories 197
The acquisition of firm-specific knowledge 198
The resource-based perspective 198
Dynamic competence-based theory of the firm 199
Developing firm-specific competencies 200
Competencies and profits 202
Technology development and effort required 203
The knowledge base of an organisation 203
The whole can be more than the sum of the parts 204
Organisational heritage 205
When the performance of the organisation is greater than the abilities
of individuals 205
Japanese organisations and the role of organisational knowledge 206
Characterising the knowledge base of the organisation 207
The learning organisation 209
Innovation, competition and further innovation 209
Dominant design 211
How firms cope with radical and incremental innovation 212
Developing innovation strategies 216
Leader/offensive 216
Fast follower/defensive 217
Cost minimisation/imitative 218
Market segmentation specialist /traditional 218
A technology strategy provides a link between innovation strategy and
business strategy 218
Case study: The cork industry, the wine industry and the need for closure 219
Chapter summary 228
Discussion questions 228
Key words and phrases 228
References 229
Further reading 231

7 Strategic alliances and networks 232

Defining strategic alliances 234

The fall of the go-it-alone strategy and the rise of the octopus strategy 236
Complementary capabilities and embedded technologies 237
Interfirm knowledge-sharing routines 238
Forms of strategic alliance 239
Licensing 239
Supplier relations 240
Outsourcing 240
Joint venture 241

xi
Contents

Collaboration (non-joint ventures) 241

R&D consortia 241
Industry clusters 242
Innovation networks 243
The ‘virtual company’ 245
Motives for establishing an alliance 246
The process of forming a successful strategic alliance 247
Negotiating a licensing deal 248
Terms for the agreement 248
Rights granted 249
Licence restrictions 249
Improvements 249
Consideration (monetary value) 249
Reports and auditing of accounts 249
Representations/warranties 250
Infringement 250
Confidentiality 250
Arbitration 250
Termination 250
Risks and limitations with strategic alliances 250
The role of trust in strategic alliances 253
The concept of trust 253
Innovation risks in strategic outsourcing 255
Eating you alive from the toes up 257
The use of game theory to analyse strategic alliances 258
Game theory and the prisoner’s dilemma 259
Use of alliances in implementing technology strategy 260
Case study: And the winner is Sony’s Blu-ray – the high-definition DVD format war 261
Chapter summary 267
Discussion questions 268
Key words and phrases 268
References 268
Further reading 271

8 Management of research and development 272

What is research and development? 274

The traditional view of R&D 275
R&D management and the industrial context 275
R&D investment and company success 278
Classifying R&D 281
The operations that make up R&D 283
R&D management and its link with business strategy 285
Integration of R&D 286
Strategic pressures on R&D 288
The technology portfolio 289
The difficulty of managing capital-intensive production plants in a dynamic
environment 290

xii
 Contents

Which business to support and how? 291

Technology leverage and R&D strategies 293
Strengths and limitations of this approach 294
Allocation of funds to R&D 295
Setting the R&D budget 296
Level of R&D expenditure 298
Case study: The long and difficult 13-year journey to the marketplace for
Pfizer’s Viagra 299
Chapter summary 306
Discussion questions 306
Key words and phrases 307
References 307
Further reading 308

9 Managing R&D projects 310

Successful technology management 312

The changing nature of R&D management 314
Organising industrial R&D 317
The acquisition of external technology 318
Level of control of technology required 319
Forms of external R&D 320
Effective R&D management 323
Managing scientific freedom 324
Skunk works 327
The link with the product innovation process 328
The effect of R&D investment on products 329
Evaluating R&D projects 330
Evaluation criteria 330
Case study: CSI and genetic fingerprinting 334
Chapter summary 340
Discussion questions 340
Key words and phrases 340
References 341
Further reading 343

10 Open innovation and technology transfer 344

Background 346
The dominant economic perspective 347
Open innovation 348
Introduction to technology transfer 350
Information transfer and knowledge transfer 350
Models of technology transfer 351
Licensing 352
Science park model 352
Intermediary agency model 353

xiii
Contents

Directory model 353

Knowledge Transfer Partnership model 353
Ferret model 353
Hiring skilled employees 355
Technology transfer units 355
Research clubs 355
European Space Agency (ESA) 356
Consultancy 356
Limitations and barriers to technology transfer 356
NIH syndrome 357
Internal organisational factors and inward technology transfer 358
Absorbtive capacity: developing a receptive environment for technology transfer 359
Identifying external technology: the importance of scanning and networking 361
Linking external technology to internal capabilities 362
Managing the inward transfer of technology 362
Technology transfer and organisational learning 363
Case study: Sony-Ericsson mobile phone joint venture dependent on
technology transfer 365
Chapter summary 373
Discussion questions 373
Key words and phrases 373
References 373
Further reading 376

Part Three New product development 377

11 Product and brand strategy 378

Capabilities, networks and platforms 380

Product platforms 381
Product planning 383
Product strategy 386
Competitive strategy 386
Product portfolios 387
The competitive environment 388
Differentiation and positioning 389
Differentiation 389
Product positioning 390
Competing with other products 393
Managing brands 395
Brands and blind product tests 395
Brand strategy 397
Brand extensions 398
Market entry 401
Launch and continuing improvement 402
Withdrawing products 403
Managing mature products 406

xiv
 Contents

Case study: Developing a new product for the tooth whitening market 407
Chapter summary 413
Discussion questions 414
Key words and phrases 414
References 414
Further reading 415

12 New product development 416

Innovation management and NPD 418

Product development as a series of decisions 419
New products and prosperity 420
Considerations when developing an NPD strategy 420
Ongoing corporate planning 420
Ongoing market planning 421
Ongoing technology management 421
Opportunity analysis/serendipity 421
NPD as a strategy for growth 422
Market penetration 422
Market development 423
Product development 423
Diversification 423
A range of product development opportunities 423
What is a new product? 426
Defining a new product 427
Classification of new products 429
Repositioning and brand extensions 431
New product development as an industry innovation cycle 432
Overview of NPD theories 433
The fuzzy front end 434
Time to market 436
Agile NPD 437
Models of new product development 437
Departmental-stage models 438
Activity-stage models and concurrent engineering 439
Cross-functional models (teams) 441
Decision-stage models 441
Conversion-process models 441
Response models 441
Network models 442
Case study: Launching innocent into the growing fruit smoothie market 443
Chapter summary 450
Discussion questions 451
Key words and phrases 451
References 451
Further reading 454

xv
Contents

13 Packaging and product development 456

Wrapping and packaging products 458

The basic principles of packaging 461
Protection 461
Containment 462
Identification 463
Labelling 463
Characteristics of packaging 465
Dispensing 465
Storage 465
Stability 466
Handling 466
Opening/resealing 466
After use and secondary use 468
Disposal 468
Product rejuvenation 468
New product opportunities through packaging 470
Product and pack size variation 471
Packaging systems 473
Retailer acceptance 475
Revitalising mature packaged goods 476
Case study: Halfords Motor Oil – redesign and rebranding of an
existing product 477
Chapter summary 482
Discussion questions 482
Key words and phrases 482
References 483
Further reading 483

14 New service innovation 486

The growth in services 488

Growth in knowledge-intensive business services (KIBS) 488
Outsourcing and service growth 489
Different types of services 493
Technology and new service development 495
New services and new business models 495
Characteristics of services and how they differ from products 496
Intangibility 497
Heterogeneity 498
Simultaneous production and consumption 498
Perishability 498
Classification of service innovations 499
The new service development process 499
New service development models 501
Sequential service development models or stage-gate models 502
Concurrent service development models 504

xvi
 Contents

Service innovation and the consumer 505

Consumer user toolkits 506
Consumer testing of services 507
Case study: Developing new services at the world’s most successful
internet-based company, eBay 508
Chapter summary 516
Discussion questions 516
Key words and phrases 516
References 517
Further reading 520

15 Market research and its influence on new product

development 522

Market research and new product development 524

The purpose of new product testing 525
Testing new products 526
Techniques used in consumer testing of new products 527
Concept tests 528
Test centres 528
Hall tests/mobile shops 528
Product-use tests 528
Trade shows 529
Monadic tests 529
Paired comparisons 529
In-home placement tests 529
Test panels 529
When market research has too much influence 529
Discontinuous new products 532
Market research and discontinuous new products 533
Circumstances when market research may hinder the development of
discontinuous new products 533
Technology-intensive products 534
Breaking with convention and winning new markets 536
When it may be correct to ignore your customers 539
Striking the balance between new technology and market research 540
The challenge for senior management 542
Case study: Dyson, Hoover and the bagless vacuum cleaner 543
Chapter summary 551
Discussion questions 551
Key words and phrases 552
References 552
Further reading 553

16 Managing the new product development process 554

New products as projects 556

The Valley of Death 557

xvii
Contents

The key activities that need to be managed 558

Assembling knowledge 560
The generation of business opportunities 560
Developing product concepts: turning business opportunities into
product concepts 564
The screening of business opportunities 564
New technology product blogs 567
Development of product prototypes 567
Technical testing 569
Market testing and consumer research 569
How virtual worlds can help real-world innovations 570
Market introduction 571
NPD across different industries 572
Organisational structures and cross-functional teams 572
Teams and project management 573
Functional structures 573
Matrix structures 574
Corporate venturing 576
Project management 576
Reducing product development times through computer-aided design 577
The marketing/R&D interface 577
High attrition rate of new products 578
Case study: An analysis of 3M, the innovation company 581
Chapter summary 586
Discussion questions 586
Key words and phrases 587
References 587
Further reading 589

Appendix: Guinness patent 590

Index 606

xviii
Preface

Firms care about their ability to innovate, on which their future allegedly depends
(Christensen and Raynor, 2003), and many management consultants are busy persuad-
ing companies about how they can help them improve their innovation performance.
But what can firms do to improve the way they encourage and manage innovation? And
can firms manage innovation? The answer is certainly yes as Bill Gates confirmed:
‘The share price is not something we control. We control innovation, sales and profits.’
Bill Gates (2008)
Source: Rushe and Waples (2008)
We are all well aware that good technology can help companies achieve competitive
advantage and long-term financial success; just look at Apple. But there is an abundance
of exciting new technology in the world and it is the transformation of this techno-
logy into products that is of particular concern to organisations. There are numerous
factors to be considered by the organisation, but what are these factors and how do
they affect the process of innovation? This book will explain how and why most of the
most significant inventions of the past two centuries have not come from flashes of
inspiration, but from communal, multilayered endeavour – one idea being built on
another until a breakthrough is reached (Johnson, 2010).
In this book we see that many of the old traditional approaches to management need
to change and new approaches need to be adopted. Increasingly, managers and those
who work for them are no longer in the same location. Often complex management
relationships need to be developed because organisations are trying to produce com-
plex products and services and do so across geographic boundaries. Cross-functional
and cross-border task forces often need to be created.

Objective of the book

It is designed to be accessible and readable. The book emphasises the need to view
innovation as a management process. We need to recognise that change is at the
heart of it. And that change is caused by decisions that people make. The framework
(Figure 1.9) at the end of Chapter 1 attempts to capture the iterative nature of the
network processes in innovation and represents this in the form of an endless
innovation circle with interconnected cycles. This circular concept helps to show
how the firm gathers information over time, how it uses technical and societal
knowledge, and how it develops an attractive proposition. This is achieved through
developing linkages and partnerships with those having the necessary capabilities.

Target audience
This book is written for people who want to understand how firms can improve the
way they manage their innovation processes to develop new products and services.

xix
Preface

It can be used as a text book for undergraduate or graduate courses in innovation

management and new product development. A second audience is the manager who
wishes to keep abreast of the most recent developments in the innovation field.

Special features

The book is designed with one overriding aim: to make this exciting and highly
relevant subject as clear to understand as possible. To this end, the book has a
number of important features.
● A clear and straightforward writing style enhances learning comprehension.
● Extensive up-to-date references and relevant literature help you find out more and
explore concepts in detail.
● ‘Innovation in action boxes’ that illustrate how real companies are managing
innovation today.
● Clear chapter openers set the scene for each chapter and provide a chapter contents
list which offers page references to all the sections within the chapter.
● Learning objectives at the beginning of each chapter explicitly highlight the key
areas that will be explored in the chapter.
● Topical articles from the Financial Times illustrate how the subject is being dis-
cussed in the context of the wider business world.
● Summaries at the end of each chapter provide a useful means of revising and
checking understanding.
● Pause for thought questions integrated within the text. These are designed to
help you reflect on what you have just read and to check your understanding.
Answers to all Pause for thought questions are given on the book’s website
(www.pearsoned.co.uk /trott).
● Comprehensive diagrams throughout the book illustrate some of the more complex
concepts.
● Plentiful up-to-date examples within the text drive home arguments. This helps
to enliven the subject and places it in context.
● A comprehensive index, including references to all defined terms, enables you to
look up a definition within its context. See also the ‘Key words and phrases’ boxes
at chapter ends. Key words are presented emboldened in colour within the main text.
● A substantial case study at the end of each chapter shows the subject in action
within actual firms. These have been trialled on classes at several universities and
have formed the basis of lively one-hour class seminar discussions.

What’s new in the 5th edition

● Innovation in action boxes in every chapter. These bring the subject to life by
providing a real life illustration of how firms are managing innovation today.
● All chapters have been reviewed and updated with relevant references to the
literature. Illustrations within chapters have been renewed. All case studies have
been updated and modified where appropriate.
● Chapter 1 – the entrepreneurship concept is expanded. The section on models of
innovation is expanded to include architectural innovation and discontinuous

xx
 Preface

innovation. A new framework is presented at the end of the chapter to help better
understand how to manage innovation.
● Chapter 2 – a new major case study at the end of the chapter tells the story of
how three university students tried to change world trade with the development
of a folding shipping container.
● Chapter 3 – new section on management tools for innovation, which reviews how
well-established management tools can help the leaders of an organisation sustain
innovativeness and even recover from a period of stagnation, if applied correctly
and vigorously.
● Chapter 5 – a new section discusses alternative strategies to patents that have
been developed by companies, where they felt other forms of IP protection were
better suited to their needs.
● Chapter 6 – a new section explains how the competitive environment, process
innovation, product innovation and organisational structure all interact and are
closely linked together.
● Chapter 7 – a new major case study at the end of the chapter tells the story of how
Sony’s Blu-ray battled with Toshiba’s HD-DVD. Plus a new section that discusses
the practicalities of negotiating a license deal.
● Chapter 9 – a major new case study at the end of the chapter explains how the
extraordinary growth in the business of DNA fingerprinting has been matched
only by the mass appeal of the CSI television shows. In just a few years the industry
has grown into a 20 billion dollar technology intensive colossus.
● Chapter 11 – a major new case study at the end of the chapter tells the story of
how a firm developed a radical new technology for whitening teeth and then set
about trying to develop a commercial product.
● Chapter 12 – a new section explores the concept of time-to-market and how agile
New Product Development (NPD) can help reduce this.
● Chapter 16 – a new section explores the concept of the Valley of Death. The Valley
of Death is used as a metaphor to describe a relative lack of resources and expertise
in the front end of product innovation.

Web products

Log on to www.pearsoned.co.uk /trott to access learning resources which include:

For students:
● Study materials designed to help you improve your results.
● Self-test multiple choice questions, organised by chapter.
● Answers to all Pause for thought questions, to allow you to check understanding
as you progress.
● Annotated links for each chapter to relevant companies and internet sites.

For tutors (password protected):

● Lecture notes and PowerPoint slides.
● Figures and tables from the book in PowerPoint colour slides.
● Key models as full-colour animated PowerPoint slide shows.
● Teaching/learning case studies.
● Answers to all end-of-chapter discussion questions.
● Multiple choice questions, organised by chapter for use in assessments.

xxi
Preface

References
Johnson, S. (2010) Where Good Ideas Come From: The Natural History of Innovation,
Riverhead Books, New Jersey, USA.
Rushe, D. and Waples, J. (2008) Interview, Business, Sunday Times, February, p. 5.

xxii
Foreword to the Fifth edition

The purpose of innovation is to create new business. In industry, methods and tools are
developed on how to organise and manage innovation processes with the objective
to better control added-value, cost and risk. Employees, suppliers and customers are
principal actors in the process. In academia, information from observations and case
studies is transformed into scientific knowledge with the objective to better understand
the successes and failures in innovation and, ultimately, to improve the chance of success.
Innovation requires a change, i.e. change in the way we think and change in the way
we act. These changes may be small or big. In life cycle management, the ambition
is to make continuous improvements on existing products and services. In this way
the life cycle can be extended for many extra years. In innovation management, the
ambition is to come up with new concepts. This means moving away from existing
solutions. As a consequence, innovation shortens the life cycle of existing products and
services. Schumpeter calls this property ‘creative destruction’: life cycle management
and innovation management are in competition with each other. This may cause major
dilemma’s in business development. This is explored in this new edition.
Innovation processes are of a complex nature and often poorly understood. There-
fore, good textbooks that provide a clear explanation of the concepts involved, also
illustrating those concepts with real cases, are invaluable to further improve current
innovation systems. For professionals and students who want to improve their
understanding on innovation, Professor Paul Trott’s book is a must.
This new edition builds on the strengths of the fourth edition. In particular the
book remains very accessible and easy for students to read. The new edition has
been updated with several new sections to reflect changes and developments within
the literature. The introduction of several major new cases at the end of the chapters
has enhanced the book and made it more interesting for students. For example, the
Blu-ray case, CSI case and the case study examining the development of new teeth
whitening products are particularly insightful and will be enjoyed by students. I am
sure students will benefit from using this book to enhance their understanding of
innovation management and new product development. Above all I am sure they
will enjoy reading this book.

Professor dr.ir.Guus Berkhout

Professor Guus Berkhout started his career with Shell in 1964, where he held several
international positions in R&D and technology transfer. Professor Berkhout is co-
founder of the European Centre for Innovation (ECI). He is a member of the Royal
Netherlands Academy of Arts and Sciences (KNAW), and the Netherlands Academy
of Technology and Innovation (AcTI). He also holds chairs in Geophysics and
Innovation Management at Delft University of Technology. He has written several
hundred scientific papers, and a number of books in the field of acoustics, geophysics
and innovation.

xxiii
 Acknowledgements

Author’s acknowledgements
I am indebted to many for their ideas and assistance. My primary thanks go to the many
academics who have advanced our knowledge of innovation and new product develop-
ment and on whose shoulders I have been able to stand. The following reviewers provided
feedback for this new edition: Susan Hart, Strathclyde University; Jon Sundbo, Roskilde
University, Denmark; Guus Berkhout, TUDelft; Helen Perks, UMIST; Fiona Lettice,
Cranfield University; Niki Hynes, Napier University Business School; Mark Godson, Shef-
field Hallam Univerity; Paul Oakley, University of Birmingham; David Smith, Nottingham
Business School, Nottingham Trent University; Fritz Sheimer, FH Furtwagen; Claus J.
Varnes, Copenhagen Business School; Roy Woodhead, Oxford Brookes University.
It has been a pleasure to work with my editor Rachel Gear who provided encourage-
ment, help and valuable suggestions. The task of writing has been made much easier by the
support I have had from many people. Firstly, all my students who have both wittingly and
unwittingly provided constant feedback to me on ideas. Also, a big thank you to the team
at Pearson Education. Any errors or omissions in the book are entirely mine.

Publisher’s acknowledgements
We are grateful to the following for permission to reproduce copyright material:

Figures
Figure 3.2 from Managing Innovation: an uncertainty reduction process in Managing
Innovation, J. Henry and D. Walker (eds), Sage/OU (A.W. Pearson 1991); Figure 3.3
from Architectural Innovation: The Reconfiguration of Existing Product Technologies
and the Failure of Established Firms, Administrative Science Quarterly, Vol. 35, No. 1
(Henderson, R. and Clark, K. 1990), Reproduced with permission of Johnson at Cornell
University; Figure 3.5 from Relationships between innovation stimulus, innovation capa-
city and innovation performance, R&D Management, Vol. 36 (5), 499 –515 (Prajogo, D.I.
and Ahmed, P.K. 2006), Reproduced by permission of John Wiley & Sons; Figure 3.6
from Success and failure of innovation: a review of the literature, International Journal
of Innovation Management, Vol. 7 (3), 309 –338 (van der Panne, G., van Beers, C. and
Kleinknecht, A. 2003); Figure 3.7 from Sectoral patterns of technological change: towards
a taxonomy and theory, Research Policy, Vol. 13, 343 –73 (Pavitt, K. 1994); Figure 4.1
adapted from Operations Management, 4th Ed., Pearson Education Ltd (Slack, N. et al.
2004); Figures 4.4, 4.5 adapted from Operations Management, 4th Ed., Pearson Education
(Slack, N. et al. 2004); Figure 6.3 from Innovation Management: Strategies, Implementa-
tion and Profit, Oxford University Press (Afuah, A. 2003) p. 53, Fig. 3.5, By permission
of Oxford University Press, Inc.; Figure 6.8 from Patterns of industrial innovation,
Technology Review, Vol. 80, No. 7, 40 –7 (Abernathy, W.J. and Utterback, J. 1978),

xxiv
Another random document with
no related content on Scribd:
it kept the freight and passenger rates low; the result was a deficit
amounting to about a billion dollars, which had to be made good out
of the public treasury. The taxpayers carried a burden which should
have been borne by the shippers and passengers. Second, public
ownership would mean poor service; the utilities 2. Means retention
would not keep up with modern methods; the of obsolete
public would be put to great inconvenience by methods.
reason of incompetent management. Private companies are alert, on
the look-out for new economies, and always ready to adopt improved
methods. The incentive to all this is their desire to make greater
profits. They do not hesitate to spend money upon improvements if
by so doing they can obtain more business and increase their
earnings.[241] Remove this incentive, as is done when the
government operates a public utility, and everybody takes his job
easily. Third, municipal ownership would merely 3. Would not
substitute the influence of organized labor for improve political
that of organized capital in politics. The nation, conditions.
states, and cities would have an enormous number of officials and
employees on their respective pay rolls. The employees would also
be voters. They would stand solidly for whichever political party
offered them better wages, fewer hours of labor, and other
advantages. The interests of the public would have scant
consideration in the face of organized political pressure from this
huge array of government workers. Even today the city employees
are an important factor in municipal politics. What would they be if
their numbers were doubled or trebled? The railroad employees of
the country number many hundred thousand. Count in their wives
(who are also voters), their relatives and friends, the voters whom
they can personally influence, and you will see that they would form
no negligible factor in national politics. Fourth, 4. European
although public ownership has been moderately experience not
successful in European countries where the applicable.
governments are highly centralized it does not follow that it would
have the same success in this country. In the United States, where
government is conducted on a democratic basis, with short terms of
office and strong partisan forces at work, with the spoils system still
flourishing in many states and cities, public ownership would result in
gross mismanagement and extravagance. If the government is to
engage in business it should first put itself on a business basis.
Before it undertakes to operate the railroads or the telephone service
it should introduce efficiency into its own governmental functions.
Summary.—In balancing these various Weight of the
arguments, one against the other, and in foregoing
comparing the relative merits of public regulation arguments.
with those of public ownership, much depends upon local conditions.
It cannot be said that either policy is the better one at all times, in all
communities, for all utilities, and under all circumstances. Where
public regulation has been satisfactory there is a good deal to be
said for the policy of letting well enough alone. Where the policy of
regulation has not been successful the arguments for trying the
experiment of public ownership become stronger. It ought to be
remarked, however, that if local conditions are such as to make
regulation a failure they are not likely to make public ownership a
success. A state or community which cannot hold capital under
effective control is not likely to be much more successful in its
dealings with a large body of public employees. No great weight
should be attached to the fact that public ownership has succeeded
in one city or failed in another. The success or failure of public
ownership, as a policy, cannot be fairly judged from this or that
adventure in it, any more than we can judge the outcome of a
campaign from the winning or losing of a single skirmish. Banks
sometimes fail, yet our banking system is sound. Speculators
occasionally succeed, and make fortunes, but that does not prove
speculation to be a profitable form of business.
So far as can be judged from the figures of profit and loss, public
ownership is less economical than private management. The
community which owns and operates a street railway or a lighting
plant or any other public utility will not make a profit, in most cases,
unless it charges higher rates than would be charged by a private
company. The books may show a profit, but this is because not all
expenses which ought to be charged to the plant are put down; they
are saddled upon the taxpayer in some roundabout way. Public
ownership cannot be justified as a matter of pennies and dimes. But
profit and loss are not the only things to be considered. The question
as to which plan is better for the public is much The question is not
more than a question of surplus or deficit. The one of profit and
fair treatment of labor, the reliability of the loss alone.
service, the removal of sinister political influences—these should be
reckoned with as well. And that is where people with different points
of view fail to agree. The advisability of public ownership is an
intensely practical issue which cannot be solved by appealing to any
set rules or principles. It is entirely logical for one to favor public
ownership of the water supply while opposing its extension to the
street railway. One is closely related to the public health; the other is
not. In a well-governed community, where the service rendered by a
private company has proved to be unsatisfactory, the policy of public
ownership may be entirely justified. This does not mean, however,
that the people of boss-ridden cities, with the spoils system in full
operation, should take over public services which are doing well
enough under private management. Conditions, not theories, should
determine which is the wise policy.
Guild Operation.—In recent years another alternative to private
ownership has been put forth. It is known as guild ownership.
Knowing that many people are disinclined toward public ownership
because they fear that it would merely mean the mismanagement of
the public services by politicians, some labor leaders have proposed
that the utilities should be owned and operated by the organized
employees. In brief they suggest that the government should supply
the capital (receiving interest on it, of course,) and that the
employees should operate the utilities through officials chosen by
them, or chosen by themselves and the government jointly. The
Plumb plan, put forward in 1919 as a solution of the railroad
problem, was a proposal of this nature. Some advocates of guild
operation believe in applying this policy not only to public utilities but
to all industries.
General References
F. W. Taussig, Principles of Economics, Vol. II, pp. 397-418;
Clyde L. King, The Regulation of Municipal Utilities, pp. 3-55;
H. G. James, Municipal Functions, pp. 246-281 (Public Utilities); pp. 282-295
(Municipal Ownership);
 Massachusetts Constitutional Convention, 1917-1918, Bulletins, No. 22
(Municipal Ownership in the United States);
E. M. Phelps (editor), Government Ownership of Railroads (Debaters’
Handbook Series). Contains material on both sides of the question. See also K. B.
Judson (editor), Government Ownership of Telegraphs and Telephones, and J. E.
Johnson, Municipal Ownership, in the same series;
F. C. Howe, The Modern City and its Problems, pp. 149-164.
Group Problems
1. Government ownership of telegraphs and telephones. History of the wire
services. How the telegraph and telephone companies are organized. Present
methods of regulation by the national, state, and local authorities. Public
ownership of telegraphs and telephones in Europe. The results of European
experience. American experience during the war. Summary and conclusions.
References: K. B. Judson (editor), Government Ownership of Telegraphs and
Telephones (Debaters’ Handbook Series); A. N. Holcombe, Government
Ownership of Telephones in Europe, pp. 441-463; H. R. Meyer, Public Ownership
and the Telephone of Great Britain, pp. 239-268; W. W. Willoughby, Government
Organization in War Time, pp. 191-198.
2. State regulation of public utilities. References: H. G. James, Municipal
Functions, pp. 246-281; C. L. King, Regulation of Municipal Utilities, pp. 253-263;
G. P. Jones, State Versus Local Regulation, in Annals of the American Academy
of Political and Social Science, LIII (May, 1914), pp. 94-107; Proceedings of the
Conference of American Mayors, 1915, pp. 123-162; H. M. Pollock and H. S.
Morgan, Modern Cities, pp. 225-249.
3. Municipal ownership in Europe. References: G. B. Shaw, The Common
Sense of Municipal Trading, pp. 17-42; Leonard Darwin, Municipal Ownership,
pp. 33-66; Douglas Knoop, Principles and Methods of Municipal Trading, pp. 95-
106; F. C. Howe, European Cities at Work, pp. 37-67; Yves Guyot, Where and
Why Public Ownership Has Failed, pp. 55-71; W. H. Dawson, Municipal Life and
Government in Germany, pp. 208-259; C. D. Thompson, Municipal Ownership,
pp. 15-25; National Civic Federation Report (1907), Part I, Vol. I, pp. 261-302.
Short Studies
1. Franchises. Cyclopedia of American Government, Vol. II, pp. 44-48.
2. A model street railway franchise. C. L. King, Regulation of Municipal
Utilities, pp. 165-181.
3. Gas and electric lighting franchises. W. B. Munro, Principles and Methods
of Municipal Administration, pp. 247-257.
4. Germany’s experience in public ownership. W. H. Dawson, Municipal Life
and Government in Germany, pp. 208-259.
 5. Great Britain’s experience in public ownership. Douglas Knoop,
Principles and Methods of Municipal Trading, pp. 306-365.
6. Municipal ownership in the United States. Massachusetts Constitutional
Convention, 1917-1918, Bulletin, No. 22; National Civic Federation, Shall the
Government Own and Operate the Railroads, the Telegraph and Telephone
Systems? The Affirmative Side; Ibid., The Negative Side.
7. Guild ownership. G. D. H. Cole, Guild Socialism, pp. 42-77.
8. Public service commissions. S. P. Orth, Readings on the Relation of
Government to Industry, pp. 308-343.
9. The danger of giving government too much to do. Otto H. Kahn,
American Economic Problems, pp. 235-275.
10. The Plumb plan. Public Ownership League, Bulletin, No. 12, pp. 86-100;
Ibid., Bulletin, No. 14, pp. 59-74; 127-130.
Questions
1. Name all the principal public service industries of the present day. Would you
say that the following are public utilities: abattoirs; grain elevators; coal mines; pipe
lines for conveying oil from city to city; wireless telegraph establishments; airships
carrying passengers; automobiles; taxicabs; jitney busses; hotels; steamships;
docks; banks; hospitals? Why or why not in each case?
2. Make a definition of public utilities which will square with your answer to the
previous question.
3. If a merchant should install an electric generator to provide light for his own
store, would he be then engaged in a public service and would he require a
franchise? If he desired to sell current to his neighbors (without crossing a street)
would he then require a franchise? Give your reasons.
4. Certain industries are particularly suited to public management (for example,
the postal service and water supply). Name some others. Why are they suited?
5. What provisions should be made in a street railway franchise as regards term,
fares, service, contributions by the company to the public treasury, disposal of the
plant when the franchise expires, and regulation during the franchise term?
6. Can you give any reasons why the government should carry mail but not
telegrams? Parcels by post but not by express?
7. Name some reasons why the effective regulation of public utilities is difficult.
8. What public utilities are operated in your city? By what companies? When do
their franchises expire? Who regulates them? Would any of them be better
managed under public ownership?
9. Which of the arguments for municipal ownership seem to you to be the
strongest, and why? Which of the arguments against?
10. Would it be consistent for an Englishman to favor municipal ownership of
street railways in London but to oppose it in New York after becoming a resident
there?
 Topics for Debate
1. Street railways should be (a) owned and operated by private companies, or
(b) owned by private companies and operated by the government, or (c) owned
and operated by the government.
2. Guild operation should be applied to all public utilities.
 CHAPTER XXV
EDUCATION

The purpose of this chapter is to explain why education is made

compulsory, how the schools are managed, what they cost, and what they are
trying to do.

Education and Democracy.—No matter In a democracy

where one may go, in any part of the world, it education is
will be found that political democracy and public essential.
education tend to keep pace with each other. In despotisms one will
rarely find a system of universal, free, public education; or, if it is
found, one can be sure that the despotism will not last very long.
Education is the friend of democracy and the foe of despotism.
Indeed it can fairly be said that without a system of public education
no democracy can be sure of its own permanence. This is because
the maintenance of democratic government depends upon the ability
of the people to think straight and to see things clearly. The more
political freedom you give a people the greater is their opportunity for
abusing it.
In a real democracy the only safeguard is the Free government
common sense of the people, and a system of depends on
free, public education will do more for the intelligence.
diffusion of common sense among the people than anything else can
do. It is unsafe to place the ballot in the hands of people without
giving them the opportunity to acquire that degree of enlightenment
which is necessary to enable them to use the ballot intelligently. The
voter who cannot read a newspaper or understand the public
questions which he is called upon to decide is a poor foundation
upon which to build a government. More than fifty years ago, when
England practically adopted manhood suffrage, some of the old-
fashioned statesmen bemoaned the fact that the multitudes of the
people would be “masters” of the government. “Well, then”, said a
certain member of Parliament, “educate your masters!” That is the
only way to keep a democratic government honest, intelligent,
orderly, and capable.
THE EVOLUTION OF THE BOOK. By John W. Alexander

From a Copley Print, copyright by Curtis & Cameron,

Boston. Reproduced by permission.

THE EVOLUTION OF THE BOOK

 By John W. Alexander
These three mural paintings are in the East Corridor
of the Library of Congress.
The first depicts the spread of knowledge by oral
tradition. A seer, or wise man, narrates by word of
mouth to his tribesmen the story of the race. This was,
in earliest times, the only way of imparting knowledge.
Then, after many centuries, came the making of
manuscript books on parchment. The monks of the
Middle Ages, as shown in the central picture, spent
much of their time in the laborious task of making
books—each letter being printed by hand. Finally came
the invention of printing. In the third picture Gutenburg,
the inventor, is inspecting one of the pages just
completed by the primitive press which the boy is
turning by hand.

But someone may interpose to ask this If so, why are

embarrassing question: If education helps to intelligent men
make people more intelligent in political matters, sometimes corrupt
why is it that well-educated and intelligent in politics?
people are often found among corrupt and selfish politicians, and
that even college graduates sometimes become notorious political
bosses? The answer is that in this, as in other things, a general truth
does not cease to be a general truth because there are exceptions to
it. Many well-educated men are unable to earn a living, but would
any sensible person argue that education, as a general rule, renders
no aid toward the gaining of a livelihood? As well might one urge that
newspapers render no service in disseminating the truth because
some of them occasionally print lies. It is quite true that men are not
politically wise in exact proportion to the extent of their education.
The man or woman who is only a grammar school graduate may
have more political wisdom than the most finished scholar in the
land. But this does not impair the fundamental truth that knowledge
is preferable to ignorance in all countries, at all times, and in every
field of human activity.
Education and Personal Efficiency.—To The general
make men and women intelligent in matters of purpose of
government is not, however, the only purpose of education.
education. The general prosperity of the country depends, in the long
run, upon the individual ability of its citizens. Every individual who
proves able to earn his own living, establish a home, bring up a
family, and by his savings add something to the nation’s capital is a
contributor to the national prosperity. Every individual who fails to
make his own way and becomes dependent, either in whole or in
part, upon the efforts of others, is a drag upon the community. In its
own interest, therefore, it is the duty of the whole people to see that
everyone is not only enabled but encouraged to become personally
efficient, able to make his own way in the world, and capable of
pulling his own weight in that many-oared boat which carries the
progress of society along.
The Purpose and Value of Education.—The The specific
purpose of education therefore is three-fold. purposes of
First, it aims to give young 1. Economic. education:
men and women the sort of
training which will enable them to earn a living. This is a primary and
fundamental purpose, because earning a living is one of life’s great
problems. But it is not the only purpose of education; an educational
system would be very defective if it confined itself to this and nothing
more. The second purpose of education is to 2. Personal.
develop the personality of the individual, his own
resources and mentality, so that he may enjoy those durable
satisfactions of life which are not directly connected with the work of
earning a livelihood. The enjoyment which men and women derive
from life is not entirely dependent upon the amount of their incomes;
one need only to look about the community to realize that this is so.
Even a large fortune does not of itself guarantee happiness. To live a
full and contented life it is necessary to know what is going on in the
world, to appreciate its significance, and to understand the many
things which, to the uneducated man or woman, are hidden
mysteries. Education helps an individual to know himself, to know
what is going on around him, to understand the motives which
govern the actions of his fellow-men, and to adjust himself to the
environment in which he lives. Knowledge is power. It is power in the
hands of everyone who possesses it. The third 3. Social.
purpose of education, the social purpose, is also
of great importance. Education aims to train the individual so that he
may better serve his fellow-men. Democracy, as has been said, rests
upon the intelligence of the people. A democratic government exacts
from its citizens a sort of service which education alone can teach
them to give.[242]
The Growth of Public Education.—For The illiteracy of
many centuries in the history of the world the bygone days.
masses of the people were afforded no opportunity for even the
elements of education. Not one person in ten thousand could read or
write. Even kings on the throne were illiterate. There is a well-known
picture of King John, with a crown on his head and a quill pen in his
hand, signing the Great Charter. It is an altogether fanciful picture,
because John Plantagenet could not write a single word, not even
his own name. No copy of Magna Carta or any other document has
ever been found with his signature on it. The only persons who could
read or write in those days were the monks and other officers of the
Church together with a very few laymen who were educated by
them. Even after the invention of printing, education spread slowly
and it was not until the nineteenth century that the desirability of
providing free schools for the masses of the people came to be
generally recognized. Prior to that time education was almost
everywhere regarded as a luxury to be bought and paid for by the
relatively few individuals who could afford it.
In the United States free education goes back The first American
to colonial days. As early as 1647 the colony of schools.
Massachusetts Bay provided that a schoolmaster should be
appointed and paid out of the taxes in every town of more than fifty
families and that this schoolmaster should teach all the children “to
write and reade”; but this example was not generally followed in the
other colonies. It has been estimated that not more than half the
population in the colonial days could read and write. The proportion
of illiteracy among women was especially large because very little
provision was made for educating girls. Even after the Revolution the
system of free, public schools spread slowly and not until the middle
of the nineteenth century did it cover the greater portion of the
country. Since the Civil War, however, the policy of making education
not only free but compulsory has been adopted in virtually every part
of the United States. The total enrolment in the public schools is now
more than twenty-two millions, and the cost of educating the vast
array of young citizens is considerably over a billion dollars a year.
The Control and Management of The function of the
Education.—As the national constitution gives state in education.
the federal government no power to control education the
responsibility rests with the several states. Every state has
established a system of free, public education, but the methods of
control and management differ greatly from one state to another.
Some states have centralized the management of the schools in the
hands of the state authorities; others leave this very largely to the
school officials of the counties, cities, or districts. Everywhere there
is a state department of education, with a board or a superintendent
in charge, some states having both. The local educational unit may
be the city, town, township, school district, or (especially in the
Southern states) the county. A school board, usually elected, erects
the school buildings, chooses a school superintendent, appoints
principals and teachers (on the recommendation of the
superintendent), and appropriates money for the support of the
schools. The detailed work of managing the schools rests primarily
upon the superintendent.[243]
Central vs. Local Control of Schools.—To Where should the
what extent should the public schools be under chief control be
the control of the state authorities? Is it lodged?
advisable that local school boards should be left free to manage the
schools as they think best, without interference from the state?
These are questions upon which the opinions of educators differ. It is
argued that the school board, in every city, town, or township knows
best the needs of its own community and hence ought to be given a
free hand in meeting these needs. This policy, moreover, affords
each school a chance to try experiments and it is through
experiments that progress in education, as in everything else, is
usually made. On the other hand it is logical to assert that if the state
laws make education compulsory and if the state treasury grants
money to local schools it is the right of the state to see that the
money is properly spent. If every city, town, and village were left free
to manage its schools without any central control there would be no
uniformity in the subjects taught, in the qualifications of teachers, or
in the organization of the schools. It would be difficult in that case for
a pupil to transfer from one school to another, outside the same
community, without finding himself a misfit in the new institution. A
certain amount of central control seems therefore to be desirable,
but it is not for the best interests of education that every school
throughout the state should be conducted in exactly the same way. A
system of that sort tends to deaden the whole process of education.
There is a great deal to be said for home rule in education, provided
there is a sufficient amount of state supervision to keep the schools
up to a proper standard.
School Boards and Politics.—It is generally Keeping the
agreed that party politics should have no place schools out of
in the management of the public schools. There politics.
may be justification for party politics in lawmaking bodies; but in
school boards there is none. There is an efficient way of managing
the schools and an inefficient way; but there is no such thing as a
Republican way or a Democratic way. Yet elections to school boards
are, in many communities, contested upon party lines. Men and
women are nominated and elected, very often, because they belong
to one or the other political party, not because they have good
judgment or a deep interest in school affairs. In this, however, public
sentiment is gradually changing. In many places the school board
elections have become non-partisan; party designations have been
taken off the ballots, and it matters little which party a candidate
belongs to. Why should it? What relation is there between a man’s
views on the tariff or the league of nations and his ability to serve his
own neighbors acceptably as a member of a local school board?
There is no visible relation. Taking the schools out of politics means
that the taxpayers get greater value for the money which is spent in
maintaining the schools, that all questions are decided upon their
merits and not by political favoritism, and that every pupil gets the
benefit of better schools, better teachers, and better educational
methods.
Educational Work of the National Government.—The national
government, as has already been pointed out, possesses no formal
powers with respect to education in the states. Nevertheless it has
done a good deal to promote the interests of public education by
publishing the results of investigations into educational problems,
and by rendering advisory assistance to the state authorities. It
maintains a Bureau of Education which is now The national
within the jurisdiction of the Interior Department. Bureau of
At the head of this bureau is a Commissioner of Education.
Education appointed by the President. The functions of the bureau
are almost wholly of an informal character; it collects data for the use
of educators and publishes this material in annual reports and
bulletins.[244] There has been a strong movement to make this bureau
a regular Department of Education, with a member of the cabinet at
its head, and to increase its powers considerably; but this movement
has not yet been successful.
Federal Aid to Education.—Within the last few years there has
been a good deal of controversy, both in Congress and outside, over
a proposal to appropriate further funds from the national treasury for
the promotion of general education in the states, particularly in those
states where the common school system needs toning up. This
proposal is embodied in a measure which has The Towner-
been before Congress for some time but upon Sterling Bill: its
which no favorable action has yet been taken. merits and defects.
[245]
In favor of the measure it is argued that public elementary
education is a national necessity and that if any state cannot raise
sufficient money to keep its common schools up to a proper standard
the interests of the whole nation will suffer in the end. There is just
as much reason, and more, it is asserted, for federal aid to state
schools as for such aid to state roads. On the other hand it is
objected that the policy of large federal subsidies to education would
involve the taxing of the populous and thriving states of the East, the
Middle West, and the Pacific Slope for the benefit of those other
states, especially in the South, where the school system has
heretofore been backward through lack of funds. Most of the federal
government’s income is provided by the taxpayers of states like New
York, Illinois, Pennsylvania, Ohio, and Massachusetts. But in these
states the public school system has already been brought up to a
standard where there is no urgent need for federal assistance. The
chief gainers under the new plan would be the states which
contribute very little of the revenue. In other words, we should be
taxing some states for the benefit of others. A somewhat more
weighty objection, to some minds, is found in the possibility that if the
national government begins the practice of making large annual
grants to the states for educational purposes it may, in due course,
undertake to exercise control over the public school systems of the
entire country. When a government grants money for any purpose it
has an undeniable right to make sure that the money is being
properly spent. To do this it must create some system of inspection.
Inspection leads to supervision, and supervision sooner or later
merges into actual control. It is feared in some quarters that this
would be the ultimate outcome of federal aid to common school
education on any large scale.

THE PUBLIC

BOARD OF EDUCATION

CLERK SUPERINTENDENT COUNSEL

SECRETARY

PRINCIPALS

ENGINEERS
SUPERVISORS
JANITORS
 TEACHERS

PUPILS

HURON PLAN OF SCHOOL ORGANIZATION

THE CONTROL OF EDUCATION
This diagram illustrates a common type of municipal
school administration. The voters choose a Board of
Education, or School Board. This body, in turn,
appoints a Superintendent of Schools who has
supervision over all matters of school management. In
some cities the members of the Board of Education are
appointed by the mayor. In the larger municipalities
there are, as a rule, one or more assistant
superintendents.
Make a similar chart showing the organization of the
school system in your own community.

Some Problems of School Organization.— A series of present-

Several problems of great importance are day questions.
engaging the attention of the school authorities at the present time.
The more conspicuous among them may be indicated by a series of
questions which are under discussion wherever educators come
together, but which are also of direct interest to the pupils and to the
community. To what age should school attendance be made
compulsory? How can pupils be kept from leaving school before they
have received a sufficient amount of education? How should the
school course be divided? Should we have junior high schools and
junior colleges as well as regular high schools and regular colleges?
How may the training of teachers be improved? Can the work of the
schools be brought into closer and better contact with the resources
of the public library? Is it possible to use the school plant, after
school hours, for various forms of community service? Can greater
use be made of the school plant during the school day? And where
are we going to get the money with which to carry on all these new
enterprises if we ultimately agree that they are desirable? This list of
questions may seem to contain some that are not related to one
another, but they all point to different aspects of the same great
problem and may be summed up in the one broad query: What
changes in school organization will better enable education to fulfil
its three-fold purpose?
The School Age.—To what age should Compulsory school
attendance be made compulsory? In most of the attendance.
states this age is now fixed at fourteen years (or grammar school
graduation) although some Southern states still maintain the twelve-
year limit. Many believe that even the fourteen-year limit is not high
enough and are urging that it be raised. In some states a step in this
direction has been taken by requiring that all persons under sixteen
years of age who engage in any form of wage-earning employment
must either present a certificate of graduation from grammar school
or must attend continuation classes for so many hours per week.
More urgent than any raising of the school age, however, is the need
for more strictly enforcing the rules which now exist. In some
communities the present age limit of fourteen years is not insisted
upon, with the result that many thousands in the backward rural
sections and in the crowded districts of cities are growing up in
illiteracy. Whatever the age limit it ought to be enforced to the letter.
[246]

Re-arranging the School Divisions.—But The present school

we should not depend wholly upon the stern arm divisions.
of the law for the solution of a problem like that of keeping pupils at
school. When normal boys and girls strongly dislike going to school,
when they stay away at every opportunity and leave school as soon
as they can, we may well suspect that there is something wrong with
the school system itself. Graduation from grammar school has
hitherto been looked upon as the natural point at which to break off.
The majority of pupils leave the schools at that stage; only a minority
go on with the regular school course. Our whole system of school
divisions has therefore brought it about that there is no logical
breaking-off point between the ages of thirteen or fourteen on the
one hand (grammar school graduation) and seventeen or eighteen
(high school graduation) on the other. It is believed by many
educators, moreover, that the last two grades of the grammar
schools have not been so organized as to awaken in the average
pupil a desire to go further. The upper grades of grammar schools do
not differ essentially in their methods of instruction from the lower
grades although the much greater maturity of the pupils would seem
to warrant the use of different methods.
To improve this situation it is now proposed to The junior high
divide the school course into three parts by school system.
establishing junior high schools, and many communities have
already adopted this plan. The junior high school as usually
organized takes the last two grades of the grammar school, adds on
the first year or the first two years of the regular high school course,
and thus provides a three-year or a four-year program which carries
pupils through to the ages of fifteen or sixteen. The methods of
instruction are those of the regular high school.[247] This plan is said
to have two marked advantages: it induces pupils to continue their
schooling one or two years longer, and it gives them a type of
instruction which is better suited to their age and interests. Objection
is sometimes raised against the junior high school system on the
ground that it involves the introduction of elective studies and hence
may result in the neglecting of fundamentals. It may also result in
bringing all the customary social and athletic diversions of the high
school into the lives of younger pupils. Whether this is an advantage
or a defect may be regarded as an open question.
What becomes of the regular high school if its The junior college.
first year or two years are lopped off? There are
two alternatives. It may become simply a senior high school with a
three-year or a two-year course, or it may add on two additional
years covering work which has hitherto been done by freshmen and
sophomores in colleges, thus providing what has come to be known
as a junior college course. Where this policy is pursued the pupil can
be carried two years beyond the old high school graduation and
enabled, on entering a college or university, to obtain a degree in
less than the usual time. All this involves a considerable increase in
the expense of maintaining the school system, of course; but it also
increases the service rendered to the community.
The Training of Teachers.—In the last analysis the success of
education depends upon the teacher. Suitable buildings, a well-
planned curriculum, good text books, all contribute their share
towards the efficiency of a school; but these are inanimate things.
Without capable teachers they are of little avail. Now effective
teaching requires two attainments on the part of the teacher, a
knowledge of the subject and ability to impart this knowledge to
others. Both of these things are essential and both are in large
measure the result of training. It is for this Normal schools.
reason that all the states maintain normal
schools in which prospective teachers are trained in the art of giving
instruction. For teachers who are already in service many of these
normal schools provide courses during the afternoon and evening
hours so that teachers may keep abreast of the most modern
methods in education. The universities also Extension courses.
provide extension courses and summer
instruction with the same end in view. All this is highly desirable and
should be carried even further. We are inclined to spend our school
appropriations on buildings, books, supplies, and facilities for the
pupils and to feel that the community discharges its full obligation to
the teachers when it pays them salaries that are by no means
proportionate to the importance of the work in which they are
engaged. But human knowledge is moving forward at a rapid pace
and anyone who does not keep close on its trail is sure to be left far
behind. Unless the teachers are afforded the opportunity of keeping
in touch with everything that is new it is difficult to see how their
instruction can keep pace with the times.
The School and the Public Library.—The public library is an
institution of great educational value and its relation to the schools
ought to be more intimate than is usually the case. Too often the
public library is merely an ornate building with a miscellaneous
assortment of books (mostly fiction) on its shelves. It is regarded as
a place for adult readers primarily. But the way to enlarge this circle
of adult readers is to bring them into touch with the resources of the