Managing the “S” curves of innovation

Innovations have the ability to create entirely new markets, or bring about substantial shifts in the balance of power in existing ones. As such, innovation should be an integral element in strategic marketing management, but in practice many large organizations seem better suited to squeeze it out rather than encourage it. This article examines the risks and complexities involved in managing the process of innovation, and sets out the management action required to build a more innovative organization.     

Innovation, embeddedness and policy: evidence from life sciences in three UK regions

This paper draws upon a survey of the life science and biotechnology regions of Oxford, Central Scotland and South West England to examine the innovation and embeddedness traits of the regions. The insights into the compositional weaknesses and strengths of the regions suggest opportunities and threats for the future development of the UK's life sciences and biotechnology. The discussion moves forward debates on biotechnology, regional innovation, regional economic development and policy by posing research questions relating to the gap of knowledge of two under-researched regions, the need for a differentiated view of regions and a public policy approach tailored towards them, as well as the prospects of 'engineering' high-tech regions. Some of the highlighted policy challenges are common to the three regions, while others are region-specific and reflect the variations of regional make-up and stage of development.     

Evolutionäre Algorithmen im Marketing

Evolutionary algorithms (EA) are search heuristics, which simulate the basic principles of biological evolution and by reenacting the evolutionary mutation and selection processes, find optimum solutions in a predefined environment. In this article we examine the current state of research on EA in fields related to marketing and discuss potential applications in marketing research. Based on a bibliographic network and factor analysis, we identify nine focus areas in current research, most of which are in the operations research area. In particular, interactive EA hitherto have hardly ever been used in marketing research. In consumer surveys they can be linked to elements of classical market research in order to design products that provide consumers with maximum benefit from their viewpoint. Thanks to their model-free approach, evolutionary algorithms offer an alternative to conjoint analyses.     

The persistence of current and proposed measures of operating cash flow

The measurement of operating cash flow using U.S. generally accepted accounting principles (GAAP) currently requires deductions for interest and income tax payments, and prohibits deductions for capital expenditures. In contrast, the IASB and the FASB are jointly proposing a new measure of operating cash flow which prohibits deductions for interest and income tax payments, and requires deductions for capital expenditures. This study compares the persistence of the current and proposed measures of operating cash flow, and the industry-specific results indicate that there is no significant difference between the persistence of the two measures for more than three-fourths of the industries in the sample. Moreover, the Boards’ constituents are recommending the use of a subtotal of operating cash flow prior to capital expenditures, and the results of this study suggest that this subtotal is more persistent for a limited number of industries than the current measure. Overall, the results of this study suggest that the predictive ability of operating cash flow will not change significantly for most industries.     

The potential value of rapid,cloud-enabled onsite testing for the diagnosis of rheumatoid arthritis in the United States

Abstract

Aims: Improvements in information technology have granted the recent development of rapid, cloud-enabled, onsite laboratory testing for rheumatoid arthritis (RA). This study aims to quantify the value to payers of such technologies.

Materials and methods: To calculate the value of rapid, cloud-enabled, onsite laboratory testing to diagnose RA relative to traditional, centralized laboratory testing, an Excel-based decision tree model was created that simulated potential cost-savings to payers who cover routine evaluations of RA patients in the US. First, a conceptual framework was created to identify the value components of rapid, cloud-enabled onsite testing. Second, value associated with patient time savings, savings on visit fees, change in treatment costs, and QALY improvements was measured, leveraging existing literature and information from an observational study. Lastly, these value components were combined to estimate the total incremental value accruing to payers per patient-year relative to centralized laboratory testing.

Results: Rapid, cloud-enabled, onsite testing is estimated to save one office and 1.81 laboratory visits during the evaluation period for the average patient. Results from an observational study found that rapid, cloud-enabled testing increased the likelihood of completing diagnostic orders from 84.5% to 97%, resulting in an increased probability of early treatment (3.5 percentage points) with disease-modifying anti-rheumatic drugs among patients eligible for treatment. The combined total value was $5,648 per evaluated patient-year. This value is primarily attributed to health benefits of early treatment ($5,048), fewer visit payments ($459), and patient time savings due to fewer office ($216) and laboratory visits ($255).

Limitations and conclusions: Data on the impact of rapid, cloud-enabled, onsite testing on patient health, care delivery, and clinical decision-making is scarce. More robust real-world data would confirm the validity of our model. Rapid, cloud-enabled, onsite testing has the potential to generate significant value to payers.     

Creativity,attention and the memory for brands: an outdoor advertising field study

This study investigates whether creativity is sufficient by itself to attract attention to the ad space or whether the ad must also be conspicuous. Attention to the ad is an important driver of message processing that leads to favourable advertising effectiveness outcomes, such as improved memory for the brand. To provide insight on this, we conducted a field study of billboard advertising along an urban expressway to explore the variables that affect recognition of outdoor advertising. Using a computational neuroscience software program, we find evidence for the presence of an attention capture threshold. That is, creativity's message processing promoting strategy only improves memory when billboards cross a threshold, i.e., when the ads are at a sufficient level of conspicuity within an individual's visual field. This threshold represents a boundary condition for creativity and provides evidence that attention must first be captured in some contexts before creativity increases the memory for brands in advertising. Results also show that billboard size, visual saliency, and brand familiarity increase recognition rates.     

The Bard of Savagery: Thorstein Veblen and Modern Social Theory

The hypothesis of this paper is that a detailed history of a specific location and period is more effective for isolating the important characteristics of institutions than studies which span multiple millennia across the globe. To illustrate this hypothesis, I examine three Italian city-states in the period between eleventh and sixteenth centuries. This was a time when the "commercial revolution" was underway in these city-states. As a result, there were institutional innovations in settlement patterns, work organization, and self-governing institutions to help provide for mutual defense and for the internalization of gains from long-distance trade. I contrast this case study with the methodology and findings employed by Douglass C. North, John J. Wallis, and Barry R. Weingast (2009) in Violence and Social Orders. Rather than analyze the importance of beliefs and the protection of property rights as in prior work of theirs, the authors here focus on the "Schumpeterian competition" between impersonal organizations as an effective institutional form to control violence. Moreover, the timeframe of their book extends to "all recorded human history." In contrast to North, Wallis, and Weingast's approach, I concentrate on Genoa, Florence, and Venice in an effort to explain more effectively the emergence of the public/private divide and the relationship between politics and economics in modern industrial society. Experimentation in medieval Italy in mediating conflict between newly emerging classes, innovating in public finance to support the military, and focusing on broad civic participation in the political process had a lasting impact on the development of the state as an institution.