production innovation and commercialisation in defence industry professor stefan hristov, phd...

PRODUCTION

INNOVATION AND

COMMERCIALISATION

IN DEFENCE INDUSTRY

Professor STEFAN HRISTOV, PhDDepartment “National and

Regional Security”University of National and World

EconomySofia , Bulgaria

INTRODUCTIONINTRODUCTION

““THE PURPOSE OF BUSINESS IS TO THE PURPOSE OF BUSINESS IS TO CREATE AND TO KEEP A CUSTOMER; CREATE AND TO KEEP A CUSTOMER; THE BUSINESS ENTERPRISE HAS THE BUSINESS ENTERPRISE HAS TWO – AND ONLY TWO TWO – AND ONLY TWO –– BASIC BASIC FUNCTIONSFUNCTIONS: : MARKETING AND MARKETING AND INNOVATIONINNOVATION. . THEY PRODUCE THEY PRODUCE RESULTS (MAKE MONEY); ALL THE RESULTS (MAKE MONEY); ALL THE REST (EVERYTHING ELSE) ARE REST (EVERYTHING ELSE) ARE COSTS”COSTS”

PROF. PETER DRUCKERPROF. PETER DRUCKER

CONCEPTUAL FRAMEWORKCONCEPTUAL FRAMEWORK

INNOVATION = INNOVATION =

THEORETICAL CONCEPTION + THEORETICAL CONCEPTION +

TECHNICAL INVENTION + TECHNICAL INVENTION +

COMMERCIAL EXPLOITATIONCOMMERCIAL EXPLOITATION

PROF. PAUL TROTTPROF. PAUL TROTT


BUSINESS GOAL:BUSINESS GOAL:FROM FROM

““IDEA GENERATION” IDEA GENERATION” TO TO

””INCOME GENERATION”INCOME GENERATION”

FROM FROM INNOVATION INNOVATION

TO TO COMMERCIALISATIONCOMMERCIALISATION


INNOVATION STRATEGIESINNOVATION STRATEGIES

INNOVATION “PULL STRATEGY”INNOVATION “PULL STRATEGY”

““MARKETING – R&D – MANUFACTURING – CUSTOMERS”MARKETING – R&D – MANUFACTURING – CUSTOMERS”

INNOVATION “PUSH STRATEGY”INNOVATION “PUSH STRATEGY”

““R&D – MANUFACTURING – MARKETING – CUSTOMERS”R&D – MANUFACTURING – MARKETING – CUSTOMERS”

INNOVATION “INTERACTIVE STRATEGY”INNOVATION “INTERACTIVE STRATEGY”

COMBINATION: “PULL STRATEGY” + “PUSH STRATEGY”COMBINATION: “PULL STRATEGY” + “PUSH STRATEGY”


CORPORATE STRATEGIES“PRODUCTS-MARKETS” MATRIX

(PROF. IGOR ANSOFF)

Products / Markets

Products

Present Products

New Products

Markets

Present Markets

Market Penetration

Strategy

Product Development

Strategy

New Markets

Market Development

Strategy

Diversification Strategy

EMPIRICAL SURVEYEMPIRICAL SURVEY

MAIN QUESTIONSMAIN QUESTIONS

WHAT ARE IMPORTANT WHAT ARE IMPORTANT EXTERNAL FACTORSEXTERNAL FACTORS? ? WHAT ARE IMPORTANT WHAT ARE IMPORTANT COMPANY INNOVATIONSCOMPANY INNOVATIONS?? HOW DO EXTERNAL FACTORS HOW DO EXTERNAL FACTORS AFFECT THE PROCESS OF AFFECT THE PROCESS OF INNOVATION?INNOVATION?


Q1: WHAT ARE IMPORTANT EXTERNAL Q1: WHAT ARE IMPORTANT EXTERNAL

FACTORSFACTORS?? ENVIRONMENTAL FACTORS EFEF

1. POLITICAL FACTORS PF

2. ECONOMIC FACTORS EF

3. SOCIAL FACTORS SF

4. NATURAL FACTORS NF

5. LEGAL FACTORS LF

6. MARKET FACTORS MF

7. FINANCIAL FACTORS FF

8. RESOURCE FACTORS RF

9. TECHNOLOGICAL FACTORS TF

10. CULTURAL FACTORS CF


Factors

Descriptive statistics

Mean

Trmean

Stdev

Semean

Median

Q1 Q3 Rk

PF 8,857

9,105 1,621

0,354 9,0 8,0 10,0

1

EF 7,524

7,579 1,692

0,369 8,0 6,5 9,0 6

SF 5,381

5,316 2,202

0,480 5,0 3,5 6,5 9

NF 5,095

5,053 2,827

0,617 5,0 3,0 6,5 10

LF 7,286

7,474 2,411

0,526 8,0 5,0 9,0 7

MF 8,095

8,368 1,972

0,430 8,0 7,5 9,0 3

FF 8,143

8,158 1,062

0,232 8,0 8,0 9,0 4

RF 7,952

8,108 1,936

0,422 8,0 7,0 10,0

5

TF 8,762

8,895 1,221

0,266 9,0 8,0 10,0

2

CF 5,810

5,895 2,421

0,528 6,0 3,5 7,5 8


0 2 4 6 8 10

SCORES

NF

SF

CF

LF

EF

RF

FF

MF

TF

PF

FA

CT

OR

SIMPORTANCE OF THE FACTORS

EMPIRICAL SURVEYEMPIRICAL SURVEYQ2: WHAT ARE IMPORTANT COMPANY Q2: WHAT ARE IMPORTANT COMPANY INNOVATIONSINNOVATIONS??

COMPANY INNOVATIONS CONSENSUS

RANK

1. PRODUCT INNOVATIONS (PRI) 72,6 2

2. MARKET INNOVATIONS (MRI) 66,1 4

3. MANUFACTURING INNOVATIONS (MNI)

69,6 3

4. TECHNOLOGICAL INNOVATIONS (TCI)

81,6 1

5. ECONOMIC INNOVATIONS (ECI) 40,5 7

6. FINANCIAL INNOVATIONS (FNI) 41,7 6

7. MARKETING INNOVATIONS (MKI) 45,8 5

8. COMMERCIAL INNOVATIONS (CMI)

32,1 8


CONSENSUS

020

40

60

80

100CMI

MKI

FNI

ECI

TCI

MNI

MRI

PRI

EMPIRICAL SURVEYEMPIRICAL SURVEYQ3: HOW DO EXTERNAL FACTORS AFFECT THE Q3: HOW DO EXTERNAL FACTORS AFFECT THE

PROCESS OF INNOVATION?PROCESS OF INNOVATION?

Multiple Regression Models R R2 SPRI = 13,90 + 0,06PF – 0,21EF + 0,04SF + 0,01NF – 0,25LF + 0,20MF – 1,52FF – 0,01RF + 0,64TF – 0,05CF

0,787 62,0 1,88

MRI = 9,05 – 0,30PF – 0,26EF + 0,30SF + 0,12NF + 0,01LF + 0,08MF – 0,85FF – 0,01RF + 0,91TF – 0,53CF

0,752 57,2 1,78

MNI = – 3,33 + 0,18PF – 0,36EF + 0,19SF – 0,64NF + 0,45LF – 0,44MF – 0,23FF + 0,73RF + 1,16TF – 0,25CF

0,632 39,9 2,26

TCI = 3,74 – 0,03PF + 0,21EF + 0,16SF – 0,28NF + 0,22LF – 0,65MF + 0,16FF + 0,20RF + 0,49TF – 0,26CF

0,716 51,2 1,38

ECI = – 8,33 + 0,28PF + 0,62EF – 0,20SF – 0,21NF + 0,08LF – 0,12MF + 0,80FF + 0,03RF – 0,34TF + 0,18CF

0,754 56,8 1,74

FNI = – 1,95 – 0,32PF + 0,35EF – 0,31SF + 0,48NF – 0,36LF – 0,04MF + 0,59FF + 0,40RF – 0,10TF + 0,08CF

0,874 76,4 1,29

MKI = 12,0 + 0,29PF – 0,11EF – 0,44SF + 0,34NF – 0,07LF + 0,60MF + 0,23FF – 0,82RF – 1,38TF + 0,51CF

0,873 76,2 1,33

CMI = 10,90 – 0,16PF – 0,23EF + 0,27SF + 0,17NF – 0,06LF + 0,37MF + 0,53FF – 0,52RF – 1,38TF + 0,32CF

0,781 61,0 1,52


Stepwise procedureStepwise procedure

Multiple Regression Models R R2 SPRI = 14,34 – 1,49 FF + 0,64 TF – 0,28 LF 0,765 58,5 1,51

MRI = 3,58 – 0,26 PF + 0,65 TF – 0,30 CF 0,553 30,5 1,74

MNI = – 0,64 + 0,54 TF + 0,39 RF – 0,30 CF 0,456 20,8 1,99

TCI = 4,53 – 0,43 MF + 0,32 EF + 0,38 FF 0,627 39,4 1,18

ECI = – 4,79 + 0,80 FF + 0,48 EF – 0,26 MF 0,629 39,5 1,58

FNI = – 4,96 + 0,83 FF + 0,45 RF – 0,23 PF 0,799 63,9 1,22

MKI = 10,80 – 0,55 RF – 0,69 TF + 0,38 PF 0,735 54,0 1,42

CMI = 10,50 – 0,85 TF + 0,35 CF – 0,30 RF 0,680 46,2 1,37

CONCLUSIONCONCLUSION

INNOVATIVE PERFORMANCEINNOVATIVE PERFORMANCE

IN DEFENCE INDUSTRY DEPENDS IN DEFENCE INDUSTRY DEPENDS ON THE INTELLECTUAL ABILITY TO ON THE INTELLECTUAL ABILITY TO CREATE NEW PRODUCTS AND CREATE NEW PRODUCTS AND PRACTICAL EXPERIENCE TO PRACTICAL EXPERIENCE TO EXPLOIT COMMERCIAL EXPLOIT COMMERCIAL OPPORTUNITIES ON THE OPPORTUNITIES ON THE MARKETPLACE.MARKETPLACE.

production innovation and commercialisation in defence industry professor stefan hristov, phd...

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