The document discusses several theories of innovation, including that new technologies are created by combining existing technologies in new ways (combinatory process), that innovation happens through exchange of ideas in liquid networks like coffee houses, and that the prepared and collaborative environment of these networks allows for serendipitous discoveries and "slow hunches" to develop into major innovations over time. Major innovations often have origins many years before becoming widely adopted due to the time it takes to build new platforms and for them to diffuse through populations according to theories like the adjacent possible and the 10/10 rule.

1. LECTURE L05
INNOVATION

2. “I have not failed. I've just found 10,000
ways that won't work.”
– Thomas Edison

3. Adjacent Possible
The inventor must use the
components that exist in
his environment
Steven
Johnson

4. Combinatory Process
New technology is created
by combining other existing
technology in new ways

5. Gall’s Law
All complex systems that work, evolved from
simpler system that worked

6. The Law of Disappearing Technology
When some technique is
mastered, it will “disappear” as
something obvious and trivial, and
other more useful things that are
built on top of it

8. The Resistance Corollary
Even outdated things that
should “disappear” don’t
due to supposed importance

9. Complexity of Technology
Local and linear
Global and Exponential

10. Population
Population explotion
7 billion people

11. Prosperity
GDP per person

12. Matt Ridley: When ideas have sex

14. Slide from Matt Ridley’s 2010 TED talk

15. How does innovation happen?

16. Who invented…
Telephone
Phonograph
Combustion engine
Photographic film
Alexander G. Bell
Thomas Edison
Karl Benz
George Eastman
AC Motor Nikola Tesla
Safety razor King Camp Gillette

17. The Brilliant Scientist working in his lab

18. http://en.wikipedia.org/wiki/Nikola_Tesla
Nikola Tesla

20. Menlo Park
1876-1881
Tomas Edison

22. Innovation
Change in Technology

23. Something newly introduced,
such as a new method or device
Innovation

24. Innovation

25. Innovation
DisruptiveSustaining
Evolutionary
Revolutionary

26. Innovation
Sustaining Technology – Evolutionary
An innovation that improves a
product in an existing market in
ways that customers are
expecting
Red Oceans - commodities

27. Innovation
Sustaining Technology – Revolutionary
An innovation that creates a new
market by allowing customers to
solve a problem in a radically new
way
May not be affordable enough to be
disruptive

28. Ford
Model
T
Innovation
Disruptive Technology
An innovation that creates a new (an
unexpected) market by applying a
different set of values.
Affordable so the impact is major

29. How does innovation
really
happen?

30. "We take the ideas we've inherited
or stumbled across, and we
jigger them together into
some new shape."
– Steven Johnson

31. Exchange
“It is through exchange that
mankind has enjoyed huge rise
in living standards”
Matt Ridley

32. The Coffee House

34. The Medici Effect

36. Environment of the space
Where people meet
Where ideas have sex

38. The Liquid network
A good idea is a network.
Innovations happens with
collaboration
Steven
Johnson

39. The Liquid network
Innovations happen when
ideas are shared
Steven
Johnson

40. The importance of cities

41. The Hummingbird Effect

42. Unexpected consequence of
new innovations
The Hummingbird Effect

44. The Hummingbird Effect
Smartphones
DIY Drones
iPad
Printed press
DIY Drones
Filming effects, harvesting
Games for 2-5 years olds
Spectacles

45. Sir Isaac Newton

47. The Slow Hunch
A lot of ideas linger on,
sometimes for decades,
in the back of people’s
minds
Steven
Johnson

48. Source:
http://www.britannica.com/EBchecked/topic/187881/Douglas-­‐Engelbart
Douglas Englebart 1965 Apple Macintosh 1984

49. Any technology that is going to have significant
impact over the next 10 years is already at
least 10 years old
Source:
http://www.businessweek.com/innovate/content/jan2008/id2008012_297369.htm
The 10/10 Rule

50. The 10/10 Rule
10 years to build a new
platform, 10 years for it
to be adopted
Steven
Johnson

51. What do the following products have in common?

52. LSD
Post-it notes Viagra
Teflon
Penicillin

53. Serendipity
The accident of finding
something useful or good
without looking for it
Steven
Johnson

54. "In the fields of observation chance
favours only the prepared mind”
- Louis Pasteur

55. Impact of innovation

56. Gross domestic product

57. The Forth Quadrant

59. 1MARKET/INDIVIDUAL
2MARKET/NETWORK
4
NON-MARKET/NETWORK
3
NON-MARKET/INDIVIDUAL

60. Liquid network
The Slow Hunch
10/10 Rule
Serendipity

61. NEXT
Diffusion of Innovation