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A Retrospective Analysis of U.S. Policy

In recent decades, antitrust investigations and cases targeting mergers—including those involving Google, Ticketmaster, and much of the domestic airline industry—have reshaped industries and changed business practices profoundly. And yet there has been a relative dearth of detailed evaluations of the effects of mergers and the effectiveness of merger policy. In this book, John Kwoka, a noted authority on industrial organization, examines all reliable empirical studies of the effect of specific mergers and develops entirely new information about the policies and remedies of antitrust agencies regarding these mergers. Combined with data on outcomes, this policy information enables analysis of, and creates new insights into, mergers, merger policies, and the effectiveness of remedies in preventing anticompetitive outcomes.

After an overview of mergers, merger policy, and a common approach to merger analysis, Kwoka offers a detailed analysis of the studied mergers, relevant policies, and chosen remedies. Kwoka finds, first and foremost, that most of the studied mergers resulted in competitive harm, usually in the form of higher product prices but also with respect to various non-price outcomes. Other important findings include the fact that joint ventures and code sharing arrangements do not result in such harm and that policies intended to remedy mergers—especially conduct remedies—are not generally effective in restraining price increases. The book’s uniquely comprehensive analysis advances our understanding of merger decisions and policies, suggests policy improvements for competition agencies and remedies, and points the way to future research.

Marginal Notes on Innovation, Design, and Democracy

Innovation and design need not be about the search for a killer app. Innovation and design can start in people’s everyday activities. They can encompass local services, cultural production, arenas for public discourse, or technological platforms. The approach is participatory, collaborative, and engaging, with users and consumers acting as producers and creators. It is concerned less with making new things than with making a socially sustainable future. This book describes experiments in innovation, design, and democracy, undertaken largely by grassroots organizations, non-governmental organizations, and multi-ethnic working-class neighborhoods.

These stories challenge the dominant perception of what constitutes successful innovations. They recount efforts at social innovation, opening the production process, challenging the creative class, and expanding the public sphere. The wide range of cases considered include a collective of immigrant women who perform collaborative services, the development of an open-hardware movement, grassroots journalism, and hip-hop performances on city buses. They point to the possibility of democratized innovation that goes beyond solo entrepreneurship and crowdsourcing in the service of corporations to include multiple futures imagined and made locally by often-marginalized publics.

Contributors
Måns Adler, Erling Björgvinsson, Karin Book, David Cuartielles, Pelle Ehn, Anders Emilson, Per-Anders Hillgren, Mads Hobye, Michael Krona, Per Linde, Kristina Lindström, Sanna Marttila, Elisabet M. Nilsson, Anna Seravalli, Pernilla Severson, Åsa Ståhl, Lucy Suchman, Richard Topgaard, Laura Watts

Competition Policy for the Twenty-first Century

For more than two decades, the U.S. Department of Justice, various states, the European Commission, and many private litigants pursued antitrust actions against the tech giant Microsoft. In investigating and prosecuting Microsoft, federal and state prosecutors were playing their traditional role of reining in a corporate power intent on eliminating competition. Seen from another perspective, however, the government’s prosecution of Microsoft—in which it deployed the century-old Sherman Antitrust Act in the volatile and evolving global business environment of the digital era—was unprecedented.

In this book, two experts on competition policy offer a comprehensive account of the multiple antitrust actions against Microsoft--from beginning to end—and an assessment of the effectiveness of antitrust law in the twenty-first century. Gavil and First describe in detail the cases that the Department of Justice and the states initiated in 1998, accusing Microsoft of obstructing browser competition and perpetuating its Windows monopoly. They cover the private litigation that followed, and the European Commission cases decided in 2004 and 2009. They also consider broader issues of competition policy in the age of globalization, addressing the adequacy of today’s antitrust laws, their enforcement by multiple parties around the world, and the difficulty of obtaining effective remedies—all lessons learned from the Microsoft cases.

How Cheap Experiments Are Worth More than Good Ideas

What is the best way for a company to innovate? That’s exactly the wrong question. The better question: How can organizations get the maximum possible value from their innovation investments? Advice recommending “innovation vacations” and the luxury of failure may be wonderful for organizations with time to spend and money to waste. But this book addresses the innovation priorities of companies that live in the real world of limits. They want fast, frugal, and high impact innovations. They don’t just seek superior innovation, they want superior innovators.

In The Innovator’s Hypothesis, innovation expert Michael Schrage advocates a cultural and strategic shift: small teams, collaboratively--and competitively—crafting business experiments that make top management sit up and take notice. Creativity within constraints—clear deadlines and clear deliverables—is what serious innovation cultures do. Schrage introduces the 5X5 framework: giving diverse teams of five people up to five days to come up with portfolios of five business experiments costing no more than $5,000 each and taking no longer than five weeks to run.

The book describes multiple portfolios of 5X5 experiments drawn from Schrage’s advisory work and innovation workshops worldwide. These include financial service approaches for improving customer service and addressing security challenges; a pharmaceutical company’s hypotheses for boosting regulatory compliance; and a diaper divisions’ efforts to give babies and parents alike better “diapering experiences” with glow-in-the-dark adhesives, diagnostic capability, and bundled wipes.

Schrage’s 5X5 is enterprise innovation gone viral: Successful 5X5s make people more effective innovators, and more effective innovators mean more effective innovations.

How Audiences Take Shape in a Digital Age

Feature films, television shows, homemade videos, tweets, blogs, and breaking news: digital media offer an always-accessible, apparently inexhaustible supply of entertainment and information. Although choices seems endless, public attention is not. How do digital media find the audiences they need in an era of infinite choice? In The Marketplace of Attention, James Webster explains how audiences take shape in the digital age.

Webster describes the factors that create audiences, including the preferences and habits of media users, the role of social networks, the resources and strategies of media providers, and the growing impact of media measures—from ratings to user recommendations. He incorporates these factors into one comprehensive framework: the marketplace of attention. In doing so, he shows that the marketplace works in ways that belie our greatest hopes and fears about digital media.

Some observers claim that digital media empower a new participatory culture; others fear that digital media encourage users to retreat to isolated enclaves. Webster shows that public attention is at once diverse and concentrated—that users move across a variety of outlets, producing high levels of audience overlap. So although audiences are fragmented in ways that would astonish midcentury broadcasting executives, Webster argues that this doesn’t signal polarization. He questions whether our preferences are immune from media influence, and he describes how our encounters with media might change our tastes. In the digital era’s marketplace of attention, Webster claims, we typically encounter ideas that cut across our predispositions. In the process, we will remake the marketplace of ideas and reshape the twenty-first century public sphere.

Options and Games

Corporate managers who face both strategic uncertainty and market uncertainty confront a classic trade-off between commitment and flexibility. They can stake a claim by making a large capital investment today, influencing their rivals’ behavior, or they can take a “wait and see” approach to avoid adverse market consequences tomorrow. In Competitive Strategy, Benoît Chevalier-Roignant and Lenos Trigeorgis describe an emerging paradigm that can quantify and balance commitment and flexibility, “option games,” by which the decision-making approaches of real options and game theory can be combined.

The authors first discuss prerequisite concepts and tools from basic game theory, industrial organization, and real options analysis, and then present the new approach in discrete time and later in continuous time. Their presentation of continuous-time option games is the first systematic coverage of the topic and fills a significant gap in the existing literature.

Competitive Strategy provides a rigorous yet pragmatic and intuitive approach to strategy formulation. It synthesizes research in the areas of strategy, economics, and finance in a way that is accessible to readers not necessarily expert in the various fields involved.

Delivering Value and Driving Growth

Why is Memphis home to hundreds of motor carrier terminals and distribution centers? Why does the tiny island-nation of Singapore handle a fifth of the world’s maritime containers and half the world’s annual supply of crude oil? Which jobs can replace lost manufacturing jobs in advanced economies?

Some of the answers to these questions are rooted in the phenomenon of logistics clusters--geographically concentrated sets of logistics-related business activities. In this book, supply chain management expert Yossi Sheffi explains why Memphis, Singapore, Chicago, Rotterdam, Los Angeles, and scores of other locations have been successful in developing such clusters while others have not.

Sheffi outlines the characteristic “positive feedback loop” of logistics clusters development and what differentiates them from other industrial clusters; how logistics clusters “add value” by generating other industrial activities; why firms should locate their distribution and value-added activities in logistics clusters; and the proper role of government support, in the form of investment, regulation, and trade policy.

Sheffi also argues for the most important advantage offered by logistics clusters in today’s recession-plagued economy: jobs, many of them open to low-skilled workers, that are concentrated locally and not “offshorable.” These logistics clusters offer what is rare in today’s economy: authentic success stories. For this reason, numerous regional and central governments as well as scores of real estate developers are investing in the development of such clusters.

View a trailer for the book at: http://techtv.mit.edu/videos/22284-logistics-clusters-yossi-sheffi

Breakthroughs in medical science, innovations in medical technologies, and improvements in clinical practices occur today at an increasingly rapid rate. Yet because of a fragmented healthcare delivery system, many Americans are unable to benefit from these developments. How can we design a system that can provide high-quality, affordable healthcare for everyone? In this book, William Rouse and Nicoleta Serban introduce concepts, principles, models, and methods for understanding, and improving, healthcare delivery. Approaching the topic from the perspectives of engineering and statistics, they argue that understanding healthcare delivery as a complex adaptive system will help us design a system that is more efficient, effective, and equitable.

The authors use multilevel simulation models as a quantitative tool for evaluating alternate ways of organizing healthcare delivery. They employ this approach, for example, in their discussions of affordability, a prevention and wellness program, chronic disease management, and primary care accessibility for children in the Medicaid program. They also consider possible benefits from a range of technologies, including electronic health records and telemedicine; data mining as an alternative to randomized trials; conceptual and analytical methodologies that address the complexity of the healthcare system; and how these principles, models, and methods can enable transformational change.

The Selling of the Apollo Lunar Program

In July 1969, ninety-four percent of American televisions were tuned to coverage of Apollo 11’s mission to the moon. How did space exploration, once the purview of rocket scientists, reach a larger audience than My Three Sons? Why did a government program whose standard operating procedure had been secrecy turn its greatest achievement into a communal experience? In Marketing the Moon, David Meerman Scott and Richard Jurek tell the story of one of the most successful marketing and public relations campaigns in history: the selling of the Apollo program.

Primed by science fiction, magazine articles, and appearances by Wernher von Braun on the “Tomorrowland" segments of the Disneyland prime time television show, Americans were a receptive audience for NASA’s pioneering “brand journalism." Scott and Jurek describe sophisticated efforts by NASA and its many contractors to market the facts about space travel—through press releases, bylined articles, lavishly detailed background materials, and fully produced radio and television features—rather than push an agenda. American astronauts, who signed exclusive agreements with Life magazine, became the heroic and patriotic faces of the program. And there was some judicious product placement: Hasselblad was the “first camera on the moon"; Sony cassette recorders and supplies of Tang were on board the capsule; and astronauts were equipped with the Exer-Genie personal exerciser. Everyone wanted a place on the bandwagon.

Generously illustrated with vintage photographs, artwork, and advertisements, many never published before, Marketing the Moon shows that when Neil Armstrong took that giant leap for mankind, it was a triumph not just for American engineering and rocketry but for American marketing and public relations.

Networked Innovations in International Development

The emergence of open networked models made possible by digital technology has the potential to transform international development. Open network structures allow people to come together to share information, organize, and collaborate. Open development harnesses this power, to create new organizational forms and improve people’s lives; it is not only an agenda for research and practice but also a statement about how to approach international development. In this volume, experts explore a variety of applications of openness, addressing challenges as well as opportunities.

Open development requires new theoretical tools that focus on real world problems, consider a variety of solutions, and recognize the complexity of local contexts. After exploring the new theoretical terrain, the book describes a range of cases in which open models address such specific development issues as biotechnology research, improving education, and access to scholarly publications. Contributors then examine tensions between open models and existing structures, including struggles over privacy, intellectual property, and implementation. Finally, contributors offer broader conceptual perspectives, considering processes of social construction, knowledge management, and the role of individual intent in the development and outcomes of social models.

Contributors
Carla Bonina, Ineke Buskens, Leslie Chan, Abdallah Daar, Jeremy de Beer, Mark Graham, Eve Gray, Anita Gurumurthy, Havard Haarstad, Blane Harvey, Myra Khan, Melissa Loudon, Aaron K. Martin, Hassan Masum, Chidi Oguamanam, Katherine M. A. Reilly, Ulrike Rivett, Karl Schroeder, Parminder Jeet Singh, Matthew L. Smith, Marshall S. Smith

Copublished with the International Development Research Centre of Canada (IDRC)

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