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Product And Process Development Intensity In Process Industry: A Conceptual And Empirical Analysis Of The Allocation Of Company Resources For The Development Of Process Technology

Author

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  • THOMAS LAGER

    (Department of Business Administration and Social Sciences, Division of Industrial Organisation, Luleå University of Technology, SE-97187 Luleå, Sweden)

Abstract

In Process Industry, process development traditionally takes a large part of the company's total development efforts, but has nevertheless not received much attention in academic studies. As a part of a larger research project concerning process development in Process Industry, the allocation of company resources to R&D, and to process development in particular, has been investigated in an exploratory survey to R&D managers in European Process Industry (Mining & Mineral Industry, Food & Beverage Industry, Pulp & Paper Industry, Chemical Industry, Basic Metal Industry, and Other Process Industry). The results show that of the total resources for R&D, 40% was allocated to process development, and over 60% of the companies expected this figure to increase in the future. This figure not only shows the future importance of process development, but also indicates that the importance of product development in this group of companies is at present still rated higher than process development. The results from the study do not fit the most widely used theoretical models, and it is concluded that there is a need for better models with more explanatory power. The new concepts of product and process development intensity are introduced. The product and process development intensities can be looked upon as aggregated measures of individual development efforts by a company, and it is thus argued that they are of overall company strategic importance.

Suggested Citation

  • Thomas Lager, 2002. "Product And Process Development Intensity In Process Industry: A Conceptual And Empirical Analysis Of The Allocation Of Company Resources For The Development Of Process Technology," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 105-130.
    • Handle: RePEc:wsi:ijimxx:v:06:y:2002:i:02:n:s1363919602000537
    DOI: 10.1142/S1363919602000537
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    Citations

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    Cited by:

    1. Lager, Thomas & Simms, Christopher Don, 2023. "From customer understanding to design for processability: Reconceptualizing the formal product innovation work process for non-assembled products," Technovation, Elsevier, vol. 125(C).
    2. Hervas-Oliver, Jose-Luis & Sempere-Ripoll, Francisca & Boronat-Moll, Carles, 2012. "Process innovation objectives and management complementarities: patterns, drivers, co-adoption and performance effects," MERIT Working Papers 2012-051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Vinit Parida & Pankaj C. Patel & Johan Frishammar & Joakim Wincent, 2017. "Managing the front-end phase of process innovation under conditions of high uncertainty," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(5), pages 1983-2000, September.
    4. Kamalaldin, Anmar & Sjödin, David & Hullova, Dusana & Parida, Vinit, 2021. "Configuring ecosystem strategies for digitally enabled process innovation: A framework for equipment suppliers in the process industries," Technovation, Elsevier, vol. 105(C).
    5. Lager, Thomas, 2017. "A conceptual framework for platform-based design of non-assembled products," Technovation, Elsevier, vol. 68(C), pages 20-34.
    6. Hullova, Dusana & Trott, Paul & Simms, Christopher Don, 2016. "Uncovering the reciprocal complementarity between product and process innovation," Research Policy, Elsevier, vol. 45(5), pages 929-940.
    7. Simms, Christopher & Frishammar, Johan & Ford, Nicholas, 2021. "The front end in radical process innovation projects: Sources of knowledge problems and coping mechanisms," Technovation, Elsevier, vol. 105(C).
    8. Romero-Martínez, Ana M. & Montoro-Sánchez, Ángeles & Garavito-Hernández, Youseline, 2017. "O efeito da diversidade de gênero e o nível educacional na inovação," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 57(2), April.

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