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By Richard K. Lester
Amid mounting hindrance over the lack of jobs to low-wage economies, one truth is apparent: America's prosperity hinges at the skill of its companies to repeatedly introduce new services and products. yet what makes for an artistic financial system? How can the awesome surge of innovation that fueled the growth of the Nineties be sustained? For a solution, Richard ok. Lester and Michael J. Piore study innovation options in a number of the economy's such a lot dynamic sectors. via eye-opening case reports of latest product improvement in fields akin to cellphones, clinical units, and blue denims, primary procedures emerge. this type of tactics, analysis--rational challenge solving--dominates administration and engineering perform. the opposite, interpretation, isn't greatly understood, or perhaps recognized--although, because the authors clarify, it truly is completely the most important to innovation. not like challenge fixing, interpretation embraces and exploits ambiguity, the wellspring of creativity within the economic climate. by means of emphasizing interpretation, and displaying how those greatly varied procedures may be mixed, Lester and Piore's ebook supplies managers and architects the suggestions and instruments to maintain new items flowing. however the authors additionally provide an unsettling critique of nationwide coverage. through ignoring the function of interpretation, fiscal policymakers are drawing the inaccurate classes from the Nineties increase. the present emphasis on increasing the achieve of marketplace festival can assist the analytical tactics had to enforce innovation. but when unchecked it hazards choking off the economy's important interpretive areas. until a extra balanced coverage strategy is followed, warn Lester and Piore, America's skill to innovate--its maximum fiscal asset--will erode. (20050301)
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Sample text
The components interacted in unexpected ways. Other system interdependencies were revealed by the drive to reduce the size of the cellular telephone and make it more portable. Miniaturization required that functions previously housed inside the phone itself had to be moved out into the infrastructure. Evidently the boundaries within the system were less well-defined and less stable than the new organization charts implied. More integration across boundaries was necessary than had been anticipated, and the boundaries themselves had to be revised as products evolved.
Both style and finishing tended to be much more free-wheeling, ad hoc, intuitive, or empirical, although the kind of intuition involved in producing new finishing effects was very different from the intuition involved in fashion. A further dimension of the emergent fashion jean industry involved advertising and merchandising. Blue jeans are part of mass culture, and the media and advertising play a central role in their appeal. But the relationship between the product and the media is much more complex than in most industries because advertising is itself a part of the mass culture out of which fashion grows.
This changed dramatically in the early 1970s, propelled by the sudden popularity of American-made jeans in Europe. Levi Strauss moved to take advantage of this trend by selling its Levi’s products abroad for two and three times the retail price they commanded in the United States. The spread between European prices and costs created enormous profits that attracted local producers into the industry. To compete with the cachet of American-made jeans, these new entrants sought to stylize their garments, differentiating the product through new cuts, finishes, and variations upon the standard dark-blue denim.