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This book integrates the concept of design into the existing framework of industrial performance, international trade and comparative advantage in trade and industrial phenomena, which increasingly have been affected by design characteristics of tradable goods. Design, capability and their evolution are introduced into current theories of trade to explain the reality of international trade in the early twenty-first century and the possibility of design-based comparative advantage is explored. Toward that end, the concepts of design, architecture, organizational capability and productivity are introduced, as are their interactions and evolution. The author starts from the fact that firms’ selection of design locations precedes that of production locations and that a new product’s initial production location is usually the same as its design location. In other words, design matters in explaining today’s trade phenomena. Thus, this book analyzes product design and its evolution in the context of the comparative advantage theory. The author argues that the concept of Ricardo’s comparative advantage must be reinterpreted in a more dynamic way than in the past, with changing labor input coefficients treated as variables and driven by international capability-building competition between factories. Some of the many topics dealt with in this volume include a capability-architecture view of industrial comparative advantage, a design-based view of manufacturing, the evolution of manufacturing capabilities, Ricardian comparative advantage with changing labor input coefficients, comparative design cost and selection of design locations and a design process model behind comparative design cost. In this way, the behaviors of factories, product development projects, firms, industries and national economies in today’s global competition are described and analyzed in the most realistic way.
Industry and academia should capture significant value through adopting design-led innovation to improve opportunities for success. Skills and capabilities should serve as a basis for adopting new breakthroughs in design-driven innovation. The development of an infrastructure and centers of excellence with the capacity to respond to new market needs, combined with enhanced networking capabilities, will allow companies to be more innovative and competitive. The Handbook of Research on Driving Industrial Competitiveness With Innovative Design Principles is an essential publication that focuses on the relationship between innovation and competitiveness in business. Featuring coverage on a broad range of topics including open innovation, business incubators, and competitiveness dynamics, this book is ideally designed for entrepreneurs, government officials, executives, managers, investors, policymakers, researchers, academicians, and students interested in furthering their knowledge of pertinent topics on product design and commercialization, new models for academia-industry partnerships, and regional entrepreneurial ecosystems based on design principles.
Resource added for the Prototype and Design program 106142.
Economic activities are becoming increasingly globalised. One result being that for companies in developed market economies price-based competition is being replaced or supplemented by other forms of competitiveness. This book explores the shift towards design-based competitiveness and the escalation in the design-intensity of goods and services.
This paper surveys recent research on the concept of a dominant product design. The point of departure for the survey is the idea that dominant designs occur which shift the terms of competition in an industry. A dominant design is defined as a specific path along a design hierarchy, which establishes primacy among competing design paths. The way in which this might occur and its implications for innovation and competition are then explored. Evidence from the literature covering a number of industries in the United States is then surveyed and compared with original evidence, first presented here, from some of the same industries in Japan. The dominant design which emerges in each industry is not necessarily the result solely of technical potentials, but also of timing, collateral assets, and other circumstances. In several cases dominant designs have not or have not yet occurred. Once a degree of standardization is accepted, major innovations in an industry seem less and less likely to occur short of a wave of new entrants and increasing competition. In contrast, entry and innovation in Japan seem to occur following appearance of the dominant design, and implies that firms can pursue widely different strategies so long as their strategy is linked to the state of evolution of their core technology. Implications for further research are discussed, and the idea that a dominant design is related to information economies for users is introduced. Thus, for a design to be dominant or a standard requires a degree of experimentation and a rich collaboration between producers and users, not simply a synthesis of parts and functions in a product.
Evolutionary economics sees the economy as always in motion with change being driven largely by continuing innovation. This approach to economics, heavily influenced by the work of Joseph Schumpeter, saw a revival as an alternative way of thinking about economic advancement as a result of Richard Nelson and Sidney Winter's seminal book, An Evolutionary Theory of Economic Change, first published in 1982. In this long-awaited follow-up, Nelson is joined by leading figures in the field of evolutionary economics, reviewing in detail how this perspective has been manifest in various areas of economic inquiry where evolutionary economists have been active. Providing the perfect overview for interested economists and social scientists, readers will learn how in each of the diverse fields featured, evolutionary economics has enabled an improved understanding of how and why economic progress occurs.
The crucial role of product design in international competition is only now becoming fully appreciated. Based on a wide range of research in over 100 leading companies worldwide, this book describes and analyzes from a new perspective how good product design contributes to competitiveness and profitability.
The changing manufacturing environment requires more responsive and adaptable manufacturing systems. The theme of the 4th International Conference on Changeable, Agile, Reconfigurable and Virtual production (CARV2011) is “Enabling Manufacturing Competitiveness and Economic Sustainability”. Leading edge research and best implementation practices and experiences, which address these important issues and challenges, are presented. The proceedings include advances in manufacturing systems design, planning, evaluation, control and evolving paradigms such as mass customization, personalization, changeability, re-configurability and flexibility. New and important concepts such as the dynamic product families and platforms, co-evolution of products and systems, and methods for enhancing manufacturing systems’ economic sustainability and prolonging their life to produce more than one product generation are treated. Enablers of change in manufacturing systems, production volume and capability scalability and managing the volatility of markets, competition among global enterprises and the increasing complexity of products, manufacturing systems and management strategies are discussed. Industry challenges and future directions for research and development needed to help both practitioners and academicians are presented.
A theoretical and empirical study of the effects of competition across a broad range of industries. Policies to promote competition are high on the political agenda worldwide. But in a constantly changing marketplace, the effects of more intense competition on firm conduct, market structure, and industry performance are often hard to distinguish. This study combines game-theoretic models with empirical evidence from a "natural experiment" of policy reform. The introduction in the United Kingdom of the 1956 Restrictive Trade Practices Act led to the registration and subsequent abolition of explicit restrictive agreements between firms and the intensification of price competition across a range of manufacturing industries. An equally large number of industries were not affected by the legislation. Using data from before and after the 1956 act, this book compares the two groups of industries to determine the effect of price competition on concentration, firm and plant numbers, profitability, advertising intensity, and innovation. The book avoids two problems common to empirical studies of competition: how to measure the intensity of competition and how to unravel the links between competition and other variables. Because the change in the intensity of competition had an external cause, there is no need to measure the intensity of competition directly, and it is possible to identify one-way causal effects when estimating the impact of competition. The book also examines issues such as the industries in which collusion is more likely to occur; the effect of cartels and cartel laws on market structure and profitability; the links between competition, advertising, and innovation; and the constraints on the exercise of merger and antitrust policies.