Technology and Innovation

Technology and Its Relationship to Innovation

Technology, as defined by Betz, is the knowledge of manipulation of nature for human purposes. This definition highlights two essential characteristics of technology; namely, that it is knowledge and its end or goal is to achieve certain human purposes.

Technology, as knowledge, is something born in the human mind. It is conceived. The act of conceiving this knowledge is the moment of invention of the technology. However, it is important to clarify that conceiving knowledge, in scientific thinking, is not the same as conceiving an idea or a hypothesis. Knowledge means knowing certain truths and in scientific terms, truth corresponds to reality. Therefore, conceiving knowledge includes its demonstration (i.e. that it works in the real world; this can be demonstrated through a physical artifact, as is often the case for new technology, or through accurate predictions  of certain physical phenomena, as is the case for new theories.)

Technology, as having an end to achieve certain human purposes, is useful and desirable. Once its usefulness has been established, human beings, whether as individuals or groups, are willing to pay to acquire technology. In other words, human society value technology.

Innovation is the invention and exploitation (e.g. commercialization) of something valuable. As previously discussed, technology is both invented and valuable. It, therefore, follows that technology is a product or output of innovation. However, technology is not the only possible output of innovation. There are other valuable things that can be invented and exploited that may not be technological in nature. For instance, a new way of doing business I.e. a new business model is also an innovation. A new business model does not necessary involve new technology but rather a new way doing or managing a business. As such, it is not technological but rather managerial in nature. Having said that, it is also important to note that many business model innovations are enabled or brought about by technology. In this regard, technology is also an input to innovation.

In general, technology is an input to innovation (that technology is often an input to business model innovations is just a specific instance.) This is the case because innovation does not happen in isolation. It occurs in the context of human society and human society is a web of interacting and interrelated organizations and institutions where knowledge can be transferred, acquired, diffused and assimilated. In the context of human society, the process of innovation is non-liner and cumulative. It builds on existing knowledge to come up with something new. Thus, technology, in actual history, has always been a critical input to innovation (though not the only input.)

The mechanism by which technology becomes an input to innovation is varied. It can be very deliberate through carefully planned and arranged technology acquisitions or as a natural consequence of innovation occurring in human society through technology diffusion. Regardless, the result is the same; existing technology is used, directly or indirectly, to develop or produced either a new technology or an improvement to an existing technology. When a totally new technology is produced, the innovation is said to be radical. When an improvement to existing technology is developed, the innovation is said to be incremental. Whether incremental or radical, a technological innovation is either in the form a product (embodying the innovation) or a process (utilizing or made possible by the innovation).

In summary, by nature and definition, technology is an output of innovation and as a consequence of the nature innovation as it occurs in the context of human society, technology is also an input to innovation.

References

Betz, Frederick. Managing Technological Innovations: Competitive Advantage from Change. Hoboken, New Jersey: Wiley, 2011.

Imbang, Glen. “Some Important Features of Technology.” Technology Management Center, University of the Philippines.  2010.

Imbang, Glen. “Technology Forecasting and Assessment.” Technology Management Center, University of the Philippines.  2010.

Posadas, Roger. “Definition and Classification of Technology.” Technology Management Center, University of the Philippines.  2010.

Posadas, Roger. “Forms and Types of Innovation.” Technology Management Center, University of the Philippines.  2010.

Posadas, Roger. “Introduction to Management of Technology and Innovation.” Technology Management Center, University of the Philippines.  2010.

Posadas, Roger. “Invention – The Conception of New Technology.” Technology Management Center, University of the Philippines.  2010.

Williams, Robin, and David Edge. “The Social Shaping of Technology.” Research Policy 25 (1996): 865 – 899.