Lead time reduction for new products

The research, which was given the terms of reference, "To cut the lead time for getting new products into volume production", was sponsored by a company which develops and manufactures telecommunications equipment. The research described was based on studies made of the development of two processors which were designed to control telephone exchanges in the public network. It was shown that for each of these products, which were large electronic systems containing both hardware and software, most of their lead time was taken up with development. About half of this time was consumed by activities associated with redesign resulting from changes found to be necessary after the original design had been built. Analysing the causes of design changes showed the most significant to be Design Faults. The reasons why these predominated were investigated by seeking the collective opinion from design staff and their management using a questionnaire. Using the results from these studies to build upon the works of other authors, a model of the development process of large hierarchical systems is derived. An important feature of this model is its representation of iterative loops due to design changes. In order to reduce the development time, two closely related philosophies are proposed: By spending more time at the early stages of development (detecting and remedying faults in the design) even greater savings can be made later on, The collective performance of the development organisation would be improved by increasing the amount and speed of feedback about that performance. A trial was performed to test these philosophies using readily available techniques for design verification. It showed that about an 11 per cent saving would be made on the development time and that the philosophies might be equally successfully applied to other products and techniques.

Technological diversification and new innovators in European regions:evidence from patent data

This paper assesses the impact of regional technological diversification on the emergence of new innovators across EU regions. Integrating analyses from regional economics, economic geography and technological change literatures, we explore the role that the regional embeddedness of actors characterised by diverse technological competencies may have in fostering novel and sustained interactions leading to new technological combinations. In particular, we test whether greater technological diversification improve regional ‘combinatorial’ opportunities leading to the emergence of new innovators. The analysis is based on panel data obtained merging regional economic data from Eurostat and patent data from the CRIOS-PATSTAT database over the period 1997–2006, covering 178 regions across 10 EU Countries. Accounting for different measures of economic and innovative activity at the NUTS2 level, our findings suggest that the regional co-location of diverse technological competencies contributes to the entry of new innovators, thereby shaping technological change and industry dynamics. Thus, this paper brings to the fore a better understanding of the relationship between regional diversity and technological change.

Does human capital endowment of foreign direct investment recipient countries really matter? evidence from cross-country firm level data

The stylized literature on foreign direct investment (FDI) suggests that developing countries should invest in the human capital of their labor force in order to attract FDI. However, if educational quality in developing country is uncertain such that formal education is a noisy signal of human capital, it might be rational for multinational enterprises to focus more on job-specific training than on formal education of the labor force. Using cross-country data from the textiles and garments industry, we demonstrate that training indeed has a greater impact on firm efficiency in developing countries than formal education of the workforce. © 2013 John Wiley & Sons Ltd.