ELSEVIER ADVANCED TECHNOLOGY Technovation, 16(3) (1996) 99-100 Published by Elsevier Science Ltd. Printed in Great Britain 0166-4972/96 $15.00 + 0.00 Bookreviews Mastering the Dynamics of Innovation by James M. Utterback, Harvard Business School Press, Boston, MA, 1994, ISBN 0- 87584-342-5, US$24.95 (hardback), 253 pp. For two decades one of the key models offering an explanation for innovation across a range of indus- tries has been that developed by Abernathy and Utterback. In essence it argues that there are clear phases in the life cycle of an innovation, from an early fluid per- iod in which various technological options compete and where empha- sis is predominantly on product innovation. This leads on to a maturity phase, where a dominant design emerges and where empha- sis shifts to incremental innovation, often focused on cost reduction or minor performance enhancement. There is also, as markets develop and mature, a transition from pro- duct to process innovation as the focal point for innovative activity. Twenty years on, this new book provides some fascinating histori- cal evidence to support and enrich the model. Drawing on case studies of industry evolution in fields as different as typewriters and refrigeration, Utterback presents a clearly argued view that there are patterns in the innovation process from which we can learn. Importantly, he develops earlier thinking around the model to explore the limits of its application and important differences between assembled and non-assembled pro- ducts -- for example, in the cases of typewriters or automobiles as compared with glass-making. Key themes raised and discussed in the book include: • the role of dominant designs in shaping the development of new industries and in redirecting and re-energizing mature industries. The cases provide a rich set of examples describing how this process occurs and highlighting lessons for would-be entrepre- neurs and those responsible for managing competing techno- logies; • the importance of collateral assets in establishing dominant designs (the case of electric lighting and the work of Edison is particularly revealing here); • the importance of strategic man- agement of the process of evolving new technology based industries; the case studies pro- vide strong support for the view that competitive advantage is not an accident but the product of careful analysis, close moni- toring and fast manoeuvring. The video system discussion (VHS vs. Betamax) illustrates this well; • the importance of communi- cation between users and pro- ducers, particularly in terms of providing early feedback to modify design trajectories and helping to move towards a dominant version; • the importance of technological intelligence and the need to develop scanning systems which look far and wide, rather than concentrating on develop- ments close at hand. The dis- tinction between what Carter fascinating questions about the ways in which firms could structure and manage to build upon the themes raised in the book -- for example, through developing intel- ligence systems, building user link- ages and linking product and pro- cess innovation through a formalized innovation strategy. These themes need further explo- ration, both in theory and practice. There is much to reflect upon in the book for those interested in studying the innovation process, and it is presented in a lively, informative and very readable style. Perhaps the most disturbing thought for those involved in actu- ally managing the process of inno- vation is the clear message that the majority of competence-destroying innovations -- those which reshape industries and rewrite the rules of the game -- come from outside the existing set of players. The casualty list of firms which presumed their technological advantage was strong and which failed to see such changes coming is worryingly long and contains a major challenge for strategic management. Overall, this is an excellent book with much to recommend it to both students and managers of inno- vation. John Bessant CENTRIM University of Brighton Managing Change in the and Williams called 'parochial' and 'active' firms springs to Workplace-- New Approaches to mind here. The book offers an external per- spective on innovation, looking at patterns of industry development and change from the outside rather than exploring the ways in which they are interpreted by managers and technologists on the inside of individual firms. This poses some Employee Relations by Alan Cave, Coopers & Lybrand, Kogan Page, London, 1994, ISBN 0-7494-1007-8, 209 pp. (hardback), £25.00. As organizations struggle to get ahead of each other in these times Tedmovabon VeL 16No. 3 99