Description

Technological changes are responsible for both the creation and destruction of industries. In the face of sweeping changes in technology, some industries die while others are born. Quite clearly, a firm’s competitiveness is significantly influenced by its ability to understand and embrace new product or process technologies. Introducing technological change is risky because it brings with it a high degree of uncertainty. Understanding the nature of this uncertainty, especially the obstacles to the acceptance of the new technology, is a tricky issue. Between technical feasibility and commercial viability is a period of suspense. Excessive caution and haste are both undesirable in the context of new technologies. Sometimes, companies commit themselves to a new technology too fast and burn their fingers. In other cases, they wait and watch while another company comes up with a new technology that puts them out of business. So, even the most seasoned managers have problems evaluating the potential of a new technology. In this paper, we make an attempt to understand the nature of technological innovations and develop a framework to manage technological risks. Earlier, innovation cycles were quite long. This was the case with water power, textiles and iron in the late 18th century; steam, rail and steel in the mid-19 century; and electricity, chemicals and the internal-combustion engine at the turn of the 20th century. The encyclopaedia will be an indispensable source for all professionals, researchers and students in this subject and for anyone working in the related areas for acquiring an up-to-date overviews.