Globe, Samuel; and Others Battelle Memorial Inst., Columbus

DOCUMENT RESUME

ED 093 580 SE 016 828 AUTHOR Globe, Samuel; And Others TITLE Science, Technology, and Innovation. INSTITUTION Battelle Memorial Inst., Columbus, Ohio. Columbus Labs. SPONS AGENCY National Science Foundation, Washington, D.C. REPORT NO NSF-C-667 PUB DATE Feb 73 NOTE 33p.

EDRS PRICE MF-$0.75 HC-$1.85 PLUS POSTAGE DESCRIPTORS *Case Studies; *Innovation; Science Education; SciencRs; Technical Reports; *Technology IDENTIFIERS Battelle

ABSTRACT This report summarizes the latest effort in a series sponsored by the National Science Foundation on the innovation process. It adds to the store of retrospective case studies by documenting historically the significant events in several technological innovations of high social impact. These cases, drawn together by the Battelle Columbus Laboratories, along with previous case studies, illustrate the diverse ways by which research and development activities support each other in the innovation process. The document is an "bridged version of a report with more technical details being provided in the complete report entitled ',The Interactions of Science and Technology in the Innovative Process: Some Case Studies," available from the National Science Foundation. (Authors/PEB) L, 5 DLPARTMENT OF HEALTH EDUCATION & OJELFARE NATIONAL INSTITUT E OF EDUCATION To S DOCUMENT HAS BEEN REPk0 OJCEO EXACTLY AS RECEP.ED FROM THE PERSON OR ORGAN'ZATIONDRIO'N AT PC iNTSOF 4IC A OA OPIN,ONS S t a TEO DO P ^1 NECE isASX REPRE SENT CF r iC1AL N,T 104AL NyTiluTt OF Ethic ATiO4 PC N 1,R Pk.a_ICY

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II CJ ,t7 Science, Technology,and cD°'innovation

Prepared for NATIONAL SCIENCE FOUNDATION

Contract NSFC 667

February, 1973

O Battelle Co!umbus laboratortes 505 Ring; A...enue Columbus, Ohio 432+J1 This report summarizes the latest effort in a The findings of this study should prove use- seriessponsoredbytheNationalScience fulto those interested in the stimulation of Foundation on the innovation process. It adds technological innovation. To the extent that to the store of retrospective case studies by models emerge, they can provide the basis for documenting historically the significant events planning andpolicy. New questions about inseveraltechnologicalinnovations of high innovation that arise throughout thii report social impact, These cases, drawn together by reflect the insights gained and should provide the Battelle Columbus Laboratories, along with possible directions for further studies. previous case studies, illustrate the diverse ways Throughout this study the Battelle Columbus by which research and development activities Laboratories team worked closely with the staff support each other in the innovation process. inthe NSF Division of ScienceResources This process involves many individuals and Studies. Drs. Samuel Globe,CharlesM. institutions responding over time to numerous Schwartz, and Girard W. Levy acted as project pressures and motivations. While science and managers atBattelle. Dr. James J. Zwolenik technology play leading roles, the human ele- provided liaison and served as technical advisor ment and the environment in which innovation to the Battelle teem on behalf of NSF. takesplacearethemselvesof considerable importance. The Battelle study,taking the broad situation into account, also investigates the role of certain socioeconomic and managerial factors in promoting each of the innovations; and this part of the investigation consti- H. Guyford Stever tutes a unique contribution to the study of the Director innovation process. National Science Foundation kknowledgments

This document is an abridged version of a of the Division of Science Resources Studies at report on a study performed at the Battelle the National Science Foundation. In particular, Columbus Laboratories under Contract NSF-C Dr. James J. Zwolenik took an active interest 667. The reader who is interested in more tech- in our work and provided valuable criticism nical deta Ithan provided in this abridgment while performing the usual tasks associated with may consult the complete report entitled "The technical liaison; and Dr. Charles E. Falk en- Interactions of Science and Technology in the couragedthis work fromitsinception and Innovative Process: Some Case Studies", avail- showed keen interest during its progress. Thanks able from the National Science Foundation. are also due various referees, unknown to the In addition to the below named authors of authors, who, at the request of the National this abridged version, the contributors to the Science Foundation, reviewed and commented project included Duane E. Bell, J. Frank Byrne, on the historical accounts of the study. How- Cecil Chilton, Richard D. Falb, W. Haider Fisher, ever, the responsibility for the accounts, for Robert E. Freund, Lemont B. Kier, Edward S. interpretation of events, and for the results of Lipinsky, Garson A.Lutz, Charles S.Peet, the analysis, rests solely with those staff mem- WilliamJ.Sheppard, Gary S.Stacey, and bers of the Battelle Columbus Laboratories who Ronald A. Williams, all of the Battelle-Columbus made up the project team. Laboratories, and June Z. Fullmer of The Ohio State University. Samuel Globe Girard W. Levy Acknowledgment is also made of the helpful Charles M. Schwartz support given by various members of the staff Battelle-Columbus Laboratories the of Contents

INTRODUCTION AND OVERVIEW 1

What Is Innovation? 1

Three Periods Associated with Innovation 1 How the Study Was Conducted 2 Performing the Analysis How the Cases Were Selected The Cases Studied 4

ANALYSES AND CONCLUSIONS 6 The 21 Factors and the Decisive Events 6 Conclusions About the Factors 7 Generalizations from the Case Histories 8 Analysis and Classification of the Significant Events 9 Can Innovation Be Managed? 11

HISTORICAL ACCOUNTS OF THE CASES 12

The Heart Pacemaker 12 Hybrid Grains and The Green Revolution 15 Hybrid Corn 17 Hybrid Small Grains 17 Green Revolution Wheats 17 Electrophotography 18 Input-Output Economic Analysis Organophosphorus Insecticides 23 Oral Contraceptives 26 Magnetic Ferrites 29 Video Tape Recorder 31 Introduction and Overview

Innovation is a term that describes certain frominvention, although an invention fre- activities by which our society improves its quently provides the initial concept leading to productivity, standard of living, and economic the innovation. Norisinnovation merely a status. Basic to the progress of innovation are marginal improvement to an existing product the tools, discoveries, and techniques of science or process. Ratheritisa complex series of and technology. In an attempt to understand activities '-i-%ginning at "first conception", when better how innovation proceeds, and how itis theoriginal idea isconceived; proceeding supported by science and technology, we under- through a succession of interwoven steps of took, in the project reported here, an examina- research,development,engineering,design, tion of several innovations of high social or market analysis, management decision making, economic impact. Our motivation was not only etc.; and ending at "first realization", when an additional knowledge, but also the hope that industrially successful "product", which may such knowledge may offer guidelines for gen- actually be a thing, a technique, or a process, is erating socially desirable innovations. accepted in the marketplace. The term "innova- Before proceeding tc the account of the tion" also describes the process itself, and, when study, we shall findit useful to define some soused,itis synonymous with the phrase basic terms, and to consider in greater detail "innovative process". the background and methods of the study. We begin with a discussion of innovation itself. Three Periods Associated With Innovation As so defined, innovation extends over a li'jhat Is Innovation? bounded interval of time (the innovative period) When inventio,is or other new scientific or fromfirstconcer,iontofirstrealization. technological ideas are conceived, they do not Implicitly, therefore, we have defined two other immediately enter the stream of commercial or periods of time the "preconception" period, industrial application. In fact, many never get which precedes the time of first conception, beyond the stage of conception, while others and the "post-innovative" period, which follows are abandoned during the period of develop- the time of first realization. During the precon- ment. But some go rirough a full course of ception period science and technology develop gestation, and finally emerge as new and useful the foundation for the innovation. In the post- commercial products, processes, or techniques. innovative period improvements of the innova- Such advances are called innovations. tion are made and marketed, and the technology Innovationshould be distinguished from diffuses into other applications. The post-inno- scientificdiscovery,althoughrelevantdis- vative period is sometimes called the period of coveries may be incorporated into the innovation. Innovation should also be differentiated *Also turned "culmination" in the histor icat ,iccounts. "technologicaldiffusion", although the two Foundation and the project team. These were terms are not synonymous, because diffusion analyzed,along with threecases from the isonly one of the activities of this period. project TRACES,* by the methods described Let'slook at an example one of the below. At the time the new cases were chosen, innovations studied the Heart Pacemaker. For we expected to find that each case involved a this innovation, the preconception period saw single innovation. Laterit became clear that advances in electricity, especially electrochem- one of the cases Hybrid Grains and the Green istry, in cardiac physiology, and in surgery and Revolution-- included three distinct innova- intracardiac-therapy techniques. But first con- tions, so the eight cases represent ten innova- ception did not occur until 1928 when Or. tions.By reviewing recorded literature and, Albert S. Hyman conceived the idea of periodic wherever feasible, by interviewing important electrical stimulation of the heart by means of participants in the innovative developments, the an artificial device, an idea for which he filed a case investigators documented the history of patent applicationin1930. The innovative each innovation. process for the pacemaker proceeded between Throughout this report the term "event" is 1928 and 1960; during this period, batteries used in a special and technical sense. The inno- were upgraded, the transistor was invented, vative process comprises myriad occurrences, materialstechnology enjoyed rapid develop- some of which happen sequentially, and some ment, and surgical techniques were advanced. concurrently at differentplaces. From these The year 1960 marked the first implantation of occurrences, one can identify some that appear a pacemaker in a human patient, and marketing to encapsulate the progress of the innovation. of the device began soon thereafter; 1960 is These special occurrences are the "events" in therefore the date of first realization for this the technical sense just referred to.** Their innovation. Since that date in the post-inno- selection reflects the best judgment of the in- vative period heart pacemakers have become vestigators, and is necessarily somewhat arbi- more sophisticated, and work on further im- trary. provements continues. To clarify further how the study proceeded, Our study concentrated on the innovative other terms associated with the "events" are period. But to understand the background from defined below, which innovation evolves, and to appreciate the A significant event is an occurrence judged impact of innovation on society, we considered toencapsulate an important activityinthe alsothepreconception andpost-innovative history of an innovation or its further improve- periods. ment, as reported in publications, presentations, The preconception period presents problems, or references to research. Generally these events because itis historically open ended. At what follow one another in historical sequence, along pointinhistory should one start? Electrical channels of developing knowledge. Significant stimulation of muscular activityis important events include other classes of events. tothe development of the heart pacemaker. A decisive event is an especially important Should one then go back to Gaivarii's experi- significanteventthat provides amajor arid ments with frogs' iegs? Since some time horizon evential impetus to the innovation.It often had tobe chosen, we selected1900. The occurs at the convergence of several streams of continuity of history makes it difficult to close activity. In judging an event to be decisive, one one's eyes completely to pre-1900 events, so should be convinced that, without it, the inno- some especially significant scientific and tech- vation would not have occurred or would have nicalevents that occurred before 1900 are been serousiv delayed. included in the historical record. Is How the Study Was Conducted L. We documented the history offive new "cases", jointly selected by the National Science

2 Since science and technology lie at the focus factors believed to be important to decisive of the investigation, the great majority of signi- events of the innovative process were identified ficant events are technical in nature. However, from the literature on innovation. These factors a few events that did not involve science and are social and institutional conditions of the technology were important enough to be in- environment in which innovation takes place. cluded among the significant events. These A scale of 0, 1, 2, or 3 was established for the events are termed nontechnical. factors,designatingrespectivelyno,slight, A nontechnical event is a social or political moderate, and high importance to the decisive occurrence outside the fields of science and events. Each of the factors was then rated for technology.For example,a war or natural each decisive event. disaster would be a nontechnical event, in con- Analysis of the frequency of the ratings for trast with a management venture decision with- each of the factors provides an assessment of in a technical organization, which would be the relative importance of those factors to the classed as a technical event. decisive events. However, this procedure judges Thetechnicalevents were thenfurther the importance of the factors to the individual classified as to where they lie in the spectrum decisiveevents,and not to the innovative of science and technology. In this spectrum, process as a whole. Under the circumstances, a three regions are defined as follows. high ranking suggests that the factor is impor-

Nonmission-orientedresearchINMOR) is tant for the innovation as a whole, but a low research carried on for the purpose of acquiring ranking is ambiguous. In other words, a factor new knowledge, according to the conceptual that scores low with respect to the decisive structure of the subject or the interests of the events may yet be important for the innovation scientist, without concernforamission or as a whole. For example, ''Social Factors" was application,even though the project within rated as moderately or highly important for which such researchis done may be funded only 4 percent of the decisive events. This does with possible applications in mind. not necessarily mean that Social Factors is not important to the process of innovation; what it Mission-oriented research (MOR) is research carried on for the purpose of acquiring new does mean is that the case investigator, supported by the actual participant in the innova- knowledge expected to be useful in some application. tive process whenever he was available, did not judge that Social Factors strongly affected the Development is the process of design, im- individual decisive events. provement, testing, andengineering,inthe Characteristics of the Case Histories. The course of bringing an innovation to fruition. second part of the analysis examined the case Each technical event, judged by its predomi- histories in a qualitative way to determine what nantpurpose orcontent, vas classifiedas "characteristics" appeared frequently in the 10 NMOR, MOR, or development. innovations, each considered as a whole. These characteristics were selected from a review of Pet other studies on innovation. The historical record was subjected to three Of the eight characteristics that emerged analyses: (a) an invest.gation into how certain most prominently, some, but notall, were "factors" affected the decisive events;(b)a similar to certain of the 21 factors. When such search through the historicalrecordfor similarity exists, and in addition both the factor "characteristics" common to the innovations; and the characteristic score high in the analysis, and (c) a classification in various ways of all one is justified in ascribing more than average significant events. importance to the influence of that condition DecisiveEvents. The concept of decisive on the innovative process, and in suggesting a events, their identification in the innovations, prescriptive judgment. Such is the situation, for and an investigation of the circumstances that example, with respect to the technical entre- affected these events, constituted one of the preneur. His presence appears to be an impor. chief contributions of this study. Twenty-one tant influence that needs to be encouraged if

3 innovation is to be promoted. THE HEART PACEMAKER Each case history also gives an account of The heart pacemaker isa device that thespecialconditionsand influences that periodicallysuppliestothediseased affected the innovation(s) of that case. These human heart an electrical impulse to start accounts, under the title "Implications of the each heart beat cycle. In its societal im- Case", show the need to allow for diversity as pact, the heart pacemaker epitomizes the well as uniformity in any attempt to provide a problem of artificial organs and organ im- general model for innovation. plants, and foreshadows the ethical ques- Significant Events. The last analysis focused tions surrounding the use of such devices. on the significant events. To provide further Ithas unquestionably demonstrated its insightintothe interactionofscience and ability to prolong life. Although the pace- technologyintheinnovativeprocess, we maker is essentially a medical device, con- examinedthefrequencyof occurrence of tributing technology came from the fields NMOR, MOR, and development events; the of electricity, electronics, chemistry, and time of occurrence of each type of event (pre- physiology. conception, innovative, or post-innovative period); and the cumulative increase in each HYBRID GRAINS AND THE GREEN type of event in the years prior to the end of REVOLUTION the innovative period. The development of hybrid grains is one part of whatis sometimes termed the Hovv tht. Gases 1,--Vert7; Stiected "green revolution",referringtothe At the outset, five cases for study were striking increase in production of cereal selected jointly by the project team and the grains in many parts of the world. In the Nationai Science Foundation. These were new study of hybrid grains, hybrid corn was cases, in that the concept of significant events emphasized because it has been a model had never been applied to them. The criteria for hybridization of other grains. Details forselection were first, that the innovations of the hybridization of the small grains, should be of high social impact, and second, wheat and sorghum, are included in the that the cases should represent diverse fields of study, as is the development of the new technology and application. Thus, one case is varieties of wheat. Improvements in rice from the social sciences, one from agricultural are also a part of the green revolution, science, one has impact mainly in medical tech- butitstechnology involves no novelty nology, one is highly significant to problems of beyond that of the other cereal grains, so the environment, and one has its background it was not included in the account. The mainly in physical science. social impact of improved grains is world- In addition to documenting the five new wide, particularly in the recent conversion cases, we used the results of three cases studied of some developing countries from grain- in the earlier project TRACES. For these cases deficient to grain-surplus conditions, and we identified the decisive events, and subjected in the grain surpluses of the United States. them, and the history of the innovations, to the Because agricultural research is itself inter- same analysis and inspection applied to the disciplinary, here one does not see the five new cases. Reliable identification of the unplanned confluence of technology, as decisive events required some further historical in most of the other cases. research.The threecasestakenfromthe TRACES projectwere OralContraceptives, ELECTROPHOTOGRAPHY Magnetic Ferrites, and Video Tape Recorder. Electrophotographyistheprocess of duplicating or copying visual material by theapplicationofelectrostaticsand The following thumbnail sketches describe photoconductivity. The best known appli- the eight cases studied. cation of electrophorography is the office

4 copier. Electrophotography has already team, rather than from unplanned cir- revolutionized businesioffice procedures, cumstance. and is producing further effects on the worldofduplicating,publishing,anti information processing. Important con ORAL CONTRACEPTIVES' tributing technology came from electro- Oral contraceptives provide a hormonal statics,photoconductivity, and corona approach to contraception. The hormones emission. in the contraceptive pill suppress ovulation, and thereby prevent conception. Oral contraceptives are inexpensive and INPUT- OUTPUT ECONOMIC ANALYSIS have been widely accepted. The principal Input-output economic analysis is a tool supportive technologies are steroid chem- for examining the structure of an econo- istry, hormone research, and reproductive my by recording the details of interindus- physiology. try commerce within that economy. It has found wide application in related areas MAGNETIC FERRITES such as studies of economic development, Magneticmaterialsare widely used in predictions of economic needs, and other contemporary technology. Of special im- aspects of national and group economics. portance among such materials are the Background technology came from gen- magnetic ferrites, which, because they are eral economic modeling and statistical ceramics,oftenhave advantages over analysis. Contributing technology came metallic magnetic materials. They com- from the field of machine computation, bine the inherently high electrical resist- especially the electronic digital computer. anceofceramicswiththe magnetic propertiesof certainmetals.Magnetic ferrites are used widely in communica- ORGANOPHOSPHORUS INSECTICIDES tions, microwave, and computer equip- Organophosphorusinsecticidesare an ment. The technological roots of this case extremely diverse group of toxic agents. are found in magnetic theory, communi Their properties range from short residual cationsscience,materials science, and action to long persistence, from broad- crystal chemistry. spectruminsecticidalactivitytohigh selectivity combined with low mammalian toxicity. Some, applied to the plant sys- VIDEO TAPE RECORDER' tern by absorption as systemic insecti The video tape recorder is a device that cides, produce their effect as the target extends thetechniqueformagnetic pests attack the plant. Because they need recordingofelectricalsignalstothe not be broadcast through large portions frequency range required for television of the biosphere and are more selective broadcasting.Itpermits wide flexibility in their effects, these products are less inediting and scheduling of television likely to affect life forms that are not part broadcasts. In fact it has revolutionized of the target population. They are an the television broadcast industry and has example of pestcontrol schemes intended found applications as well in education, to be more ecologically desirable than training, and other fields. Electromagnetic widely broadcast chlorinated hydrocar- and communications theory, electronics, bons such as DDT or chlordane. This is the technology of audio recording, and aninterestingcase becauseitsdiverse servomechanism design providedthe technologicalroots,includingorganic foundations for this case. chemistry, toxicology, and nerve physiology, came together through the deliber- ateformationofan interdisciplinary Dos ca4 3v,,ss Taken from the TRAUS

5 Analysis and Conclusions

This section presents some details of the those who givespecificsuggestions and analysesthat were explained briefly in the directions to R&C) personnel, set goals and Introduction and Overview, and summarizes the schedules, and assign staff. conclusions dra,vn from these analyses. Formal Market Analysis economic feasibility studies of an innovation, especially The 21 Factors and the Decisive Event-, estimates of its potential market.. As explained earlier, 21 factors of probable The next four factors may involve manage- importance to the direction and rate of the ment in some sense, but do not necessarily innovative process were selected from the gen- imply specific action by management: eralliterature. These factors were rated as to Prior Demonstration of Technical Feasibility degree of importance to each of the decisive earlieractivitiesthatestablishedthe events of the 10 innovations. The factors are practicability of further development or the defined or illustrated briefly below. utility of further research. The first three factors are related to various Technological Gatekeeper an individual motivational influences: who identifies scientific or technical informa- Recognition of Scientific Opportunity tionofrelevanceto theinterests and motivation for the timely acquisition of new activities of the researchers. fundamental knowledge. Technical Entrepreneur an individual with- Recognition of Technical Opportunity in the performing organization who cham- motivation for the timely improvement of pions a scientific or technical activity; he is an existing product or process. sometimes also called a "product champion". Recognition of the Need motivation for PatentlLicense Considerations existence so! ving the problem or meeting the need of patent protection of inventions, or of satisfied by the eventual innovation. licensing arrangements. The next four factors involve actions taken The next four factors descrte peer-group consciously by management: forces that impinge on tie R&D scientist: Management Venture Decision decision by Technology Interest Group (also known an organization to invest in some large-scale asthe "invisible college") a group of re- technical activity. The activity need not be searchers from differentinstitutions who directlyrelatidtothe innovation under exchange ideas and findings via persona; study. The decision is usually followed by meetings. letters,etc., as distinct from the the formation of an R&D team to carry out formal (publication) channels of communi- the activity. cation. Availabilityof Funding the existence In-House Colleagues technical personnel {rather than the extent) of financial support. withinthe performinginstitution who Early in the innovative process, even limited collaborate on or otherwise facilitate the funds can provide for critical experiments activity. Often they are members of an R&D that may influence management decisions. team. Internal R&D Management role of super- External Direction of R&D Personnel visors and other management personnel with- suggeAion of goals and approaches by per- in the performing organization. It includes sons outside the performing organization.

6 Competitive Pressures competition among TABLE 1. PERCENTAGE OF DECISIVE EVENTS persons and organizations working in the RATED MODERATELY OR HIGHLY IMPORTANT FOR EACH FACTOR same technical area.

The next two factors are circumstances that Percentage of are usually unplanned or accidental: Factors Decisive Events Serendipity emergence, during the event, Recognition of Technical Opportunity 87 of unexpected scientific or technical results Recognition of the Need 69 that proved useful in promoting the innova Internal R&D Management 66 tion. Management Venture Decision 62 Technology Confluence merging of major Availability of Funding 62 channels of development, often from diverse Technical Entrepreneur 56 scientificfields, making possible new ad- In-house Colleagues 51 vances. Prior Demonstration of Feasibility 49 The remaining four factors refer to external Patent/License Considerations 47 factors that form the general environment with- Recognition of Scientific Opportunity 43 in which the innovative process takes place: Technology Confluence 36 General Economic Factors such as a Technological Gatekeeper 30 recession or depression. Technology Interest Group 29 Social Factors such as group customs, Competitive Pressures 25 beliefs, and attitudes. External Direction to R&D Personnel 16 Political Factors such as elections or war. General Economic Factors 16 Health and Environmental Factors such as Hearth and Environmentol Fa,:tors 15 famine or disease. Serendipity 12 The last four factors permit consideration of Formal Market Analysis' 7' influencesnot includedinspecific external Political Factors 5 factorssuch as, forexample, Competitive Social Factors 4 Pressures. These categories were purposely left broad, so that the appropriate factor could be 'In retrospect, one might ar,ma, that Purclal Marko Analysis was Loud to era rated k,w, tuecimse such an applied to a given event from among the diverse analysis usuallyis done only ,7,tce, and doe', not possibilities. continue through the innavativta period. But th,:arile ,irgurrent !night apply Venture Deo swo,vOkif f,tr0 About F,Jclors, No factor was judged important for every event, and yet each of the factors was of some importance to more than one event. For each

factor listed, Table 1 presents, in descending . order, the percentage of all decisive events for which that factor was judged moderately or a highly important. Further statistical analyses of the factor ratings yielded an order only slightly different from that of Table 1, and do not affect the conclusions listed below:

7 Economic Fh...?0,,, floaiti) Envoonmen- TABLE 2, SOME PREVIOUSLY REPORTED CHAR- ta.F:tctors,Pou tyCdlE.w.fors, Soci,11 ACTERISTICS OF THE INNOVATIVE PROCESS Factor; t.tnL, at Ow bottom. 1-lowu-ver, this conclusion 1..41 thr olf,:ct of Ow fdittufs 1.Early Recognition of Need Recognition of the need for the innovation gener- on the 10(liviliWil .01(1 nOt ally occurs prior to the availability of the techno- 4)plicah'.etothew,..ovatr,.'0procesr.,,, logical means for satisfying the need. 2. Independent Inventor The independent inventor, working on his own Generalizations from the Case Histories behalf, is often important in the initiation of the process. Table 2 lists eight important characteristics 3. Technical Entrepreneur frequently observed and reported in previous the technical entrepreneur is often important to studies of the innovative process. Each of the the successful culmination of the innovation. ten innovations was examined r these charac- 4.External Invention teristics.In Table 3, which summarizes the Many innovations arise from invention,, which results, "X" indicates that the characteristic originate outside the organization that developed the innovation. was important, and "" that it was not im- 5. Government Financing portant to the innovation. The eight character- Government financing is important in many inno- istics were found in most of the ten innovations, vations although the independent inventor was found in 6.Informal Transfer of Knowledge only three. The following conclusions may be Innovations are facilitated by informal transfer of drawn: knowledge, much more than through formal channels of communication. frheteiloLcal ,,hhop,eheo:, ,n)por 7. Supporting Inventions tatice n.qhHhteki (If the Innovations generally require additional supporting ,i,() a child, ,T)pc)11--Int inventions beyond the initiating invention,

pry r of '..11.J ten r.?ns This 6 the 8. Unplanned Confluence of Iechnology 510-o--;e,t tf),iternp'rcirs fr(wil tfiid The innovative process is frequently facilitated by an urolanned confluence of technology. f3;:t, the tech the far ;f '110 '"h'h:trhg45, of oniavor T,,,HK./ if,ti',suciqc,hon cve,..!to !tr.ofr,rh, ,alky icsiolci1 dhle :3 fn,01.= shokiH (.1Ohe!( ;iv> that LII`Tildrro.'d confluent t! of ti-k p.y,;1'0;1: itV.01](1 f,n,r1 ;-")1QqY rlIN)Itai'd to sLX of the Puti:irifiticrr i!oft-:1-1nolo)yis is Fj, 11-1. el;l1rirC;1 ot, fiiiII:, nr-oitg)ns 35 :;' 1- TIT ', Thi 1:11+ id,}"r) t 1,1-gn ;!1 fl ;; !,01, r throe if t..chn9kl9y

1,;,( ) ( it f ,,t, r(I , rid

1 try ;) I. s.I tl*!

8 TABLE 3. CHARACTERISTICS OF THE Additional understanding about the innova- IN.NOVAT1VE PROCESS tive process as a whole was obtained by con- Indicated as important (X) or unimpor- sidering its duration. Table 4 presents the dates tant () for each innovation of initial conception and first realization for each of the ten innovations studied. For some of the innovations, the time from conception to realization was very short, as in the case of >ii zl the Video Tape Recorder, which was developed

i., ii. within six years from itsinitial conception. -3 a Other innovations covered a much longer time ..... -..) 3 j-- span. From the small sample of innovations Char Rteristic studied, thereis no evidence that the t'me g v ,....., ,....; - cc y. period from conception to realizationisbe- com;ng shorter. In fact, two of the more recent ii i;) Inno,,iatiun c 0 innovations (Input-Output Economic Analysis i- ....- _- .-:, F: i-i-- .- - _ .t. and the Heart Pacemaker) involve the longest i ,i_, it t-. i., time spans. The average for the ten innovations studied was 19 years. An explanation of the striking difference He:,rt P.iCe:rinki' r XXXX --XXX -- between the longest duration and the shortest Hybriid Corn ---XX X XX - gives some insight into the variety of circum- i4vtirid SiTiall Grair., X-- X X XX stances surrounding innovations. The develop- Green. Revctutioi; 4\itiii,it X-X X XX X ment of the Heart Pacemaker, which was 32 Electrphi:it,:igroPhv XXXX ---(d XX X years in the process, faced a number of in- IT:put Output F.crii.iirinil.... hibitinginfluences,includingsocialtaboos, Analviii.ii, XXXX X XX X active opposition within the medical profession .Drtialiiiijihoiiiiphili.:.riiii, and outside it, and the occurrence of World I, iskict iode.si, XX4')X XX - War II. Yet its most serious obstacle was proba- Oral Contraceptii.es X-XX - XXX bly the absence of necessary technology, as in MagtietiirCI f 1 TeS X X X XX X

Video Tame Riicordi,ri X XX --i X X

(a) But limited Government funds were provided 10 a TABLE 4. DURATION OF THE INNOVATIVE related development, giving indirect aid. PROCESS FOR TEN INNOVATIONS

t.1) x terni3I er, [roc" occurred only because World War II enabled American Cyanamid to market the. Year of innovation in advance of I. G. Far ben. Year of First First Duration, Innovation Conception Realization years

Heart Pacemaker 1928 1960 32 1-i,brid Corn 1908 1933 25 Hybrid Small Grains 1937 19:6 19 To gain furtherinsightinto the roles of Green FievoiutiiT,o 1950 1966 16 scienceandtechnology intheinnovative Wheat process, we examined the 533 significant events Electrophrytcigr,iphy 1937 1959 22 of the 10 innovations studied. These significant Input Output 1936 1964 28 events were classified as to type nonmissiori Analysis orientedresearch fNMOR), mission-oriented Ori;Jnophosphorus 1934 1947 13 ir,k; Ct it tries research (MOR), development,and nontechnical Oral Corardceptive 195! 1960 9 events. Of the events, 34 percent were classified M.ignoic F.errites 1933 1955 as NMOR, 38 percent were MOR, 26 percent 22 Video Tape Recorder 1950 1956 were development, and 3 percent were non- 6 technical. Average Dir3tion 19.2

9 Figure 1presents the proportion of signifi cant events occurring during each of the three periods making up the historical sequence. Inthe preconception period, over half of the events were NMOR, and an additional one- NT third were MOR. Thus, nearly ninety percent of the precursor events consisted of fundamental and applied scientific research. In the innovative period, 16 percent of the events were NMOR, 43 percent were MOR, and 38 percent were development. NMOR events Preconception Period continue to occur in the innovative period and even beyond; but overcoming technical barriers becomes more and more important as innovation proceeds, so that a higher percentage of MOR and development events occur in this %len. NVOit 43 period than in the preconception period. lb In the post-innovative period, when diffusion NT and improvement occur, 10 percent of the events identified were NMOR, 39 percent were DE V MOR, and 45 percent were development. 38 The differences in the rates of accumulation of NMOR, MOP, and development events are further highlighted in Figure 2. The events for Innovative Period each innovation have been related in time to the date of first realization of the innovation, and combined and plotted in terms of the number of years prior to that date. The figure indicates that half of the NMOR events occurred 30 years before first realization. Thus, the inno vations made use of published fundamental research which had been available for some time prior to the innovative period. Approximately L.)

LL Post-Innovative Period ,O O i- NMOR:Nonmission-Oriented Research z MOR:Mission Oriented Research DEV:Development a NT:Nontechnical

>_ DlS i.f r- -.,1:NIS a IN%uv,^.i1JF.,;',N6 VE. PE: 2 s1.1 .+-ro

YEARS PRIOR TO DATE OF FIRST electronics and materials. On the other hand REALIZATION the Video Tape Recorder required only existing technology, ar...so proceeded from first con- F1O CUN,ltil /JIVE TYPES ception to first realization in six years. OF SIGNIFICANI EVE N11-.; half of the MOR events occurred in the last confidently assertthat,inthe spectrum of 16 years, and approximately half of the devel- science and technology, NMOR isthe most opmental activity occurred in the last 10 years, difficult to manage, if it can be managed at all. preceding first realization. Furthermore, as we haveseen,significant In summary of the analysis and classification NMOR events continue to occur up to the end of the significant events, we may draw the of the innovative process; t -ce, we are forced following conclusions: to conclude that innovation cannot be com- rht, twne from tumt c,;;;c1o..10,1 to tost pletely controlled or programmed. Also, the

red: Yalu;, ;101(IrtW.Mci ,r1(/' t01,gasLir actions of the technical entrepreneur, or the 03'1 Irt,r11 .olcl role of such motivational forces as recognition

ut-rltra!,t to v. (1 of need and recognition of technical oppor- 19 tunity, involve inventive or creative activities fi-,:.-r11 6 to 32 It!,e that do riot lend themselves to detailed planning. rho Hence the high ranking of these factors in the .iv!!Ho. analysis supports further the conclusion that 10 t) innovation cannot be fully planned. We are fem ti),' therefore led to recommend that management, in thp:, in trying to promote innovation, permit and encourage the opportunity to act upon ides that fall outside the established or recognized V.IOR pattern. of t,!, But if innovation cannot be fully controlled, we nevertheless can discern ways in which management can help it along. Our analysis reveals two such ways by demonstrating the impor tance of funding and of the confluence of technology. As tofunding,itneed not be Can Innovation Be Managed? munifictot, at least in the early stages.It not Consideration ofthe conclusions reached only permits R&D to proceed, but probably from analysis of the decisive events, from the also aids the innovative process by the confi- characteristics of the case histories, and from dence management generates in the R&D team the classification of the significant events, leads through financial support. As to confluence of onetosomeconjecturesaboutmanaging technology, it seems almost essential to innova- innovation. tion. Yet it too often occurs without planning, There has always been argument about the and one suspects that here is an opportunity for extent to which research and development can management, by promoting interdisciplinary be managed. Whatever may be the merits of R&Dteams,toacceleratetheinnovative differing positions inthus argument, we may process.

11 Historical Accounts of the Cases

This section contains an abbreviated account impulse between chambers was described in of each of the cases studied. historical 1893. records, summarized in this accour nstituti Other work,particularly on intracardiac the information base from which the analyses therapy and on surgical techniques, continued derived. The 89 decisive events, selected from through the 1920's, but the first conception of among the significant events in the historical the idea of periodic elactrical stimulation of the accounts, are described briefly, and the features heart was propounded in 1928 by A. S. Hyman, that appear most important to the culmination director of the Witkin Foundation for the Study of the innovative process are highlighted, Charts and Prevention of Heart Disease. In 1930, he illustrate the flow of scientific and technical applied for a patent on a pacemaker, which information within the various channels of incorporated a spring-driven magnetogenerator development, for each case. On those charts, and needle electrodes, and began to use it suc the time sc.;,; is schematic only. cessfully, although the spring power limited the useful time period. He failed to gain widespread The Heart Pacemaker medical and social acceptance, however, and The totally implanted cardiac pacemaker is was even subjected to (unsuccessful) law suits used for treatment of patients with heart-block for malpractice. Unable for some time to find a disorders. The device is an electronic pulser, manufacturer to improve and miniaturize his complete with pertinent electronic circuitry, device, he finally reached an agreement with battery power source, and electrode system, Siemens of Germany, only to have this agree- encapsulated in a biocompatible package. The ment, and his pacemaker studies, disrupted by commercial product represents a remarkable World War II. Hyman never returned to work example of the confluence of several sciences on pacemakers, lacking confidence in his ability and technologies upon which its success de- toexploittheextraordinaryadvancesin pends, Included are low-powerminiature electronics made during the war years. These electronics, sealed longlife batteries, surgical advances, however, directed toward miniaturi- techniques,biomaterials, and cardiacphysi- zation and low power requirements, were to ology. provide the basis for future success in pace- Some precursor events occurred well before maker technology. the 20th century. For example, in the field of The transistor, the foundation of the new cardiac physiology,electrical stimulation of electronics technology, was invented in 1948. muscle was first observed by Galvani, in 1790. Advancesinminiaturizationandinpulse The symptoms of the primary disorder treatable circuitry came rapidly, utilizing efficiently the with the pacemaker (now known as the Stokes- low power needs of transistors. Another product Adams syndrome) were describedin1824. of the war effort was a sealed primary battery, Electrical stimulation of the heart was proposed the zinc-mercuric oxide alkaline cell, with tong in 1862. In 1886, the term "heart block" was life at low current drains. Meanwhile, other introduced to describe blockage of the syn- contributions to the implantable pacemaker chronous rhythmic contraction of the chambers epoxy for "potting" the electronic components, of the heart. The conduction tissue (the "bundle and biocompatible silicone rubber encapsulation ofHis")thattransmitsthe synchronizing materialfor long-term implantation came THE HEART PACEMAKER lemlsonduclos and tlecuumcs Development of Trans.stor and Miniaturised Circwtry

Batley Technology Development of Long-1.1e Battery

Soroca' Techniques Development of Techniques !Of Heart Surgery First Human Implant 1960 Concept ut Cardoc Physiology and Myocard.di Shmulatoon Parr at, 4 v, Improved Know/edge

Siomaterais and Electrodes

Improved embedding and bocompabbie plashcs Improved electrode materials and design.

from the polymer field. Further efforts included high voltage for external pacing, with attendant a search for electrode materials and systems pain of muscular contraction and possible burns; freefrom problems of increasing electrode consequently,interestrefocused on direct- threshold (minimum voltage needed for con- stimulation techniques for long-term pacing. By sistent stimulation) and insulation leakage in 1958, surgically induced heart block was being contact with body fluids. treated successfully with directlyimplanted Progress toward the goal of the innovation myocardial electrodes and an external transis- also depended upon advances in surgical tech- tori zed battery-powered pacemaker. Successful niques. Procedures were developed, for example, clinical application of a pacing technique using for either insertion of the electrodes through a a transvenously inserted catheter electrode to vein into contact with the inner wall or their contacttheinnerwallofthe heart was direct attachment to the heart muscle, and for announced. The first fully implantable pace- implantation of the pacemaker device. The maker wa$ placed in a human in 1959, but its extensive work leading to open-heart surgery, battery pack required periodic recharging, by and the complications which occasionally arise induction, andtheproblemofelectrode (in the form of temporary heart block due to threshold remained unsolved. surgicaltrauma) led to the development of At about this time, Wilson Greatbatch, a temporary pacing techniques. Open-heart sur- biomedical engineer, teamed with Dr. William gery received considerable publicity, and the Chardack, a surgeon,to develop a totally corresponding dramatic successes had a strong implanted, permanent cardiac pacemaker. influence on widespread acceptance of this Greatbatch applied for a patent on his device techniqueand,therefore,ontheuseof in the late 1950's, and he and Chardack tested stimulating electrodes in control of temporary itsuccessfullyin animal experiments. Some heart block. Certain religious and moral ques- difficulty wasexperiencedwithelectrode tions concerning the inviolability of the heart threshold, but a new stainless steel electrode were sufficiently resolved to permit use of the system minimized the problem. The first human pacemaker. implant was performed in 1960, marking the Successful clinical application of an external successful culmination of the innovation. The pacemakerfortreatment of complete heart device performed well and the patient survived block was announced in 1952. With further for more than 2 years. Units of this type were improvements and external, rather than needle, marketedin 1961 byMedtronics, whose electrodes, longer term use (up to one week) directorswereconvincedof thepotential was reported. However, the technique required market. At that time, however, the need was

13 not universally recognized, and the firm suf- among advocates and opponents of its use. fered heavy financiallosses during the first The sealed marcury battery, developed by year. Nevertheless, afterthat critical period, S. Ruben in 1947, marked the first power sales mounted rapidly to a net of 830 million source with properties of long life, no gas in 1971. evolution, and flat discharge characteristics The Medtronic device was of the fixed-rate suitable for powering implanted transistor- or asynchronous type, with low power require- ized devices. ments and an expected battery life of up to The invention of the transistor by J. Bardeen 5years. Its success has inspired efforts by and W. H. Brattain, in 1948, paved the way numerous investigators and manufacturers to for development of miniaturized electronic improve the device. For example, an improved equipment with low power reouirements at pacer stimulates the ventricles in response to low voltages suitable for bat,try operation. atrial contraction. Another concer is that of ThefirstBiomedical Engineering Group, demand pacing, where the pacer is inactive un- establishedbyW. less triggered into action by a period of ab- Greatbatchin1952, stimulated interaction of the medical and normallylowheartcontraction.Berkovitz engineering professions, and was later the extended this concept and, in 1971, patented source of the association of the two princi- his Bifocal® demand pacemaker, which may palsjointlyinvolved stimulate the atria, or both atria and ventricles, indevelopi'g and in accord with a preset interval. Nuclear bat- implanting the first pacemaker unit. teries have been used as power sources in an The clinical demonstration of external pacing implanted pacemaker, and solid-state batteries for heart block, by P. M. Zoll, 1952, led to with protected lifetimes of up to 10 years have widespread use of electrical stimulation. been suggested. The coupling of microelec- The development of medical-grade silicones tronics toa nuclear power source has been by Dow Corningin1953 provided the proposed, with the objective of eliminating lead necessary biocompatible encapsulating ma- problems by producing a device small enough terial. for total containment within the heart chambers, In1955,Lilleheiused external pacing to rather than the body cavity. combat heart block resulting from cardiac The Decisive Events. Of the 102 significant surgery; he later developed a technique for events recorded, the following 13 were con- direct attachment of electrodes to the heart sidered decisive: wall. Weirich and his associates in 1957, treated to 1926 the Witkin Foundation for the Study AV block with external pacer and electrodes and Prevention of Heart Disease established directly inserted into the heart muscle. A aspecialcommitteetoinvestigatethe transistorized,battery powered external problem of intracardiac therapy, initiated the pacemaker was later developed by Bakken first concentrated attack on the problems of for their te,e. resuscitation,and, with A. S. Hyman as Foundation Director, provided the base for Hunter and Roth,in1959, developed a evolution of his pacemaker concept. ;table electrode system for the implantable pacemaker, which eliminated problems of L. Cordorelli's 1928 report, that the heart electrode degradation in service in the body beatcouldbesustained by mechartical stimulation, i.e., thumping the chest, strengthened Hyrnan's concept of electrical Chadaciik and Creatbatch, in 1960, developed stimulation. the first totally implantable heart pacemaker Hyrnan'spatent application, in 1930, and implanted it successfully into a human describedthefirstelectricalinstrument patient. This unit was marketed immediately, suitable for clinical use in resuscitation. and the innovative process was completed. Hyrnan's 1932 publication of his pacemaker Implications of the Case. A unique feature experiments caused considerable polarization of this case history is the long time span, 32

14 years, from concept tofirstrealization, the wheatproduction, adramaticresultaptly longest span among the cases studied. The delay termed the "green revolution". In tracing the caused by World WarIIand the inhibiting complex history of this case, it became apparent effects of sociomedical rejectionof cardiac that more than one innovation was involved. manipulation do not account for the entire Thus, in order to describe the innovative process period. Although Hyman clearly recognized the consistently andin accord with our stated need and knew what he wanted, certain tech- definition of the term, three unique, but related, nologies, such aselectronics,batteries, and major innovations hybrid corn, hybrid small polymers, had not been developed sufficiently. grains, and the green revolution of wheat are As the needed technologies reached a level of treated separately. maturity adequate to support the innovative Hybrid Corn. For hybrid corn, the innovative process, their convergence made it possible to process begins with the recognition in 1908 of develop and market the device in a relatively the extraordinary vigor, both in size and growth short time. rate, of first-generation crosses between pure Although this innovation was need oriented, lines. The promise of hybrid corn from inbred the need was not universally recognized until crosses was recognized at this date; however, the late 1950's. The long perseverance of the difficulties of seed production made commer- inventor in the face of social resistance, legal cialization impractical. The ears of the inbred harassment, and attack by his colleagues, is well female parent were small and had few seeds, documented; he gave up only because the pollen production was low, and the plants were availabletechnology was inadequate. A.S. small, weak, and less drought resistant. Although Hyman, the inventor, was his own product thefirst-generationhybridsboreears with champion during his time. A second inventor- numerous kernels, they could not be used as entrepreneur appeared later. Management deci- seed, because the second-generation plants were sions were crucial, in the face of adverse market nonuniform, with loss of vigor. The next major analysis, possible legal ramifications,and stepforward wasthe development of the inabilitytoobtainproductinsurance. The double cross in 1918. This technique provided initial invention evolved outside the innovative large amounts of seed, but was too complex for organization. Government financing was of only the individual farmer and required specialized peripheral significance. Supporting inventions seed companies. A period of research and devel- were needed in the course of the innovation. opment followed, both by the seed industry Informal transfer of knowledge played a role, and by state and Federal agricultural experiment stations. Hybrid Grains zinc! The Green Revolution By 1933 the use of hybrid seed reached the This case describes the development of the 0.1 percent level for the nation, signifying the technology of hybridization and varietal im- start of market acceptance and the culmination provement of cereal grains, a technology that of this innovation. Following the drought con- led,ultimately, toa world-wide increasein ditions of 1934 and 1936, during which period

iiEVUIMIdH)`:

tr-,or or: Var ,cnta, Vrnodi

Corn in Me,,co

0,,dF 1,V0vcments

1:4'volvp,,ent of F-Ivt,oi Small tva,s I1NTeat & Sorghum)

15 the superior hardiness of hybrids was dramat On a cost-effectiveness basis, therefore, hybrid ically evident, use of hybrid corn increased wheat is not yet competitive. rapidly to the level of nearly universal adoption. Green Revolution Wheats. The Rockefeller Research continued, however, and led to the Foundation, in 1943, initiated a program to important discoveryofcytoplasmic(non- improve agriculture in Mexico. Inasmuch as corn Mendelian) male sterility. By combining the is the staff of life in Mexico, initial efforts were application of this discovery and the associated directed toward increasing its yield by hybridi- discovery of means ofgenetic restoration, zation. However, since the subsisteoce farmer hybrid corn could now be grown for seed with- is outside the cash economy and cannot afford out the costly and difficult task of hand or to purchase hybrid seed each year, the direction mechanical detasseling otherwise required to shifted toward other technical and socioeco- prevent self-fertilization. nomic means of improving his lot. The yield per acre of corn in the United In 1943, wheat yields in Mexico also were States has increased nearly fourfold since 1935. low; the soil, the seed, and the agricultural By 1970, about 80 percent of the hybrid corn methods were poor; and plant disease was was produced by the single-cross system of rampant. TheRockefellerFoundationfirst cytoplasmic male sterility plus genetic restora- attacked the stem rust disease problem, by tion, using cytoplasm derived from asingle testing hundreds of varieties against various variety. However, in 1970, arazw strain of local strains of rust, without success. In 1944, southern leaf blight, particularly virulent in its Norman E. Borlaug began crossing to produce attack on this type of corn, appeared in the improved varieties. The effort was prodigious: Corn Belt. This new problem, disease suscepti- of the 66,000 varieties and selections grown by bility on a broad front, emphasized an ever- 1951, only four had rust resistance. Even here, present hazard associated with large-scale use of the resistance proved insufficient against new a single genetic line. Research is continuing into strainsof the disease. Further development methods of solving this problem. effortculminatedinresistantvarieties, A HybridSmallGrains.Theproblemof parallel effort was mounted to improve the soil. hybridizationofthe smallgrains, such as Proper fertilization resulted in up to sixfold sorghum and wheat, is much more difficult increase in yield per acre; however, the plants since their flowers are hermaphroditic. That is, grew tall and, bending over with a heavy head pollen and ovules occur in the same flower. of grain, created new difficulties with mechani- Therefore, hand or mechanical means for con- cal harvesting. To solve this problem, Borlaug trol of pollination iti eliminated as a practical crosseda stiff-stalked dwarf variety into the commercial method. However, the commercial Mexican wheats, producing a series of semidwarf success of hybrid corn and the available genetic wheats that responded well to fertilizer. Thus, knowledge inspired a search for other solutions by 1960, this effort had resulted in a major to this problem. For sorghum, the first con- improvementin Mexican wheat. Meanwhile, ception of a method for hybridization was another event occurred, without which the proposed in1937. Commercial success was developmentoftrulyinternationalwheats attained by 1956 with the introduction of would havebeenimpossibleorseriously hybridsusinggeneticmalesterility,thus delayed. This was the discovery that, beginning culminating the innovation. The commercial in1950,day-lengthinsensitivityhad been introduction of hybrids using cytoplasmic male accidentally bred into the wheat. This develop- sterility followed in 1957. By 1960, 95 percent ment marked the introduction of the concept of all sorghum in the United States was hybrid. of worldwide improvement in production of Although intensive research on wheat has wheat (and other cereals). brought forth cytoplasmic male sterile plants, In 1963, experimentation began in India and commercial success has not yet been attained. PakistantoadaptMexican wheatsto the Theproblem,apparently, is thatgenetic weather, soil, diseases, and pests of the local restoration is incomplete and the hybrids are areas. High yield varieties were introduced on a equivalent only to the best varietals available. large scale inIndia in 1966, culminating the

16 innovative process. By 1971, nearly 14 million intensiveprogramtodevelop hybrid acres, one-third of India's wheat acreage, was sorghum, which produced commercial in high-yield wheat. From 1964 to 1970, the seed in 10 years. combination of increased yield and acreage re- Jones' work, in1950, on cytoplasmic sulted in a dramatic increase of about 85 per- male sterility with genetic restoration in cent inIndia's total wheat production. The corn, was important in leading to com- high-yield wheat varieties, p'us fertilizer and mercial single-cross hybrid corn and in pesticides, produced the Green Revolution that directingfurtherwork on sorghum, drastically reduced problems of hunger and wheat, and other cereals. starvation in the world, and converted some Cytoplasmic male sterilityin sorghum grain-importing countries into grain exporters. was found in1950, by Stephens and This exhaustive program and its international Holland. All effort at the Texas Experi- benefits to humanity earned Borlaug the Nobel ment Station was shifted to this approach, Peace Prize. culminating in the marketing of hybrid The Decisive Events. Fifty-eight significant sorghum in 1956. events were identified for the three innovations In 1951, H. Kihara showed that cytoplas- in this case. Of these, the following 16 were mic male sterility could be bred into considered to be decisive. wheat. This directed attention to the possible development of commercial hy- HYBRID CORN brid wheat. G. H. Shull, in 1908, reported hybrid By 1961, J. A. Wilson and W. M. Ross had vigor and the development of pure lines produced cytoplasmic male sterilityin in corn, and suggested a method of hybrid wheat. corn breeding. In 1962, J. W. Schmidt, V. A. Johnson. Independent studies of hybrid corn from and S. S. Maan found restorer genes for crosses between inbreds, by E. M. East in wheat. This discovery, plus that of cyto- 1908, revealed the potentialities of hybrid plasmic male sterility by Wilson and Ross, vigor for breeding purposes. These two pointed to the technical feasibility of events defined the concept and pointed commercialization of hybrid wheat. the way to future breeding methods for commercial development. GREEN REVOLUTION WHEATS The invention of the double-cross tech- The establishmentoftheRockefeller nique, by D. F. Jones in 1918, made Foundation programinMexico was possible the commercial exploitation of significant in that a systems approach to hybrid vigor. agriculture was applied; this approach The establishment, by F. D. Richey in provided afavorable environmentfor 1922, of a cooperative program between N. E. Borlaug's comprehensive program the USDA and the various Corn Belt on wheat. experiment stations,provideda major The introduction of dwarf wheat genes impetus to the development of hybrids into U.S. wheats, by 0. A. Vogel in 1949, suited to local conditions. led to short-stalked varieties with good fertilizer response. Borlaug obtained the HYBRID SMALL GRAINS dwarf material from Vogel, for use in The production of hybrid onions, by developingthehigh-yieldingMexican H. A. Jones and A. E. Clarke in 1943, wheats. using cytoplasmic male sterility, provided Borlaug's breeding of day-length insensi- the inspiration and direction for similar tivity into the Mexican wheats, in 1950, work in corn, sorghum, and wheat. was a decisive contribution to the devel- In 1946, R. D. Lewis, at the Texas Agri- opment of international wheats. cultural Experiment Station, approved an The establishment of the International Corn and Wheat Improvement Center a photoconductor (e.g., zinc oxide) in a resin (CIMMYT) by the Rockefeller and Ford binder and delivers the coated paper as the Foundations, in 1963, marked the inter- final copy. Now other methods of electrophoto- nationalization of the initially Mexican graphy are reaching the marketplace, or are program, and the beginning of the intro. expected soon. In this study the emphasis was duction of Mexican wheats into India and on the plain-paper copier, since its development Pakistan. from concept to culmination as a marketed By1966,large-scaleimportationand product presents the course of the innovative planting of the international high-yield process in accord with the stated definition of wheats took place in India, and culmin- innovation. ated in the "green revolution" of wheat. In 1935, Chester F. Carlson, a patent attor- ney, recognized the need for an office copier that would eliminate typing carbon copies or Implications of the Case. This case is unique preparing stencils or masters for the duplicating in that three major innovations were identified. processes.Concludingthat a photographic The three innovations were strongly interlinked, process was indicated, since the only common however, through direct interplay of technical property of the various originals to be copied kr.owledge. The historical record is highlighted would be their light reflectivity, he began his throughout by the interweaving of Government and institutional funding, and by the influence search for technical solutions via the interaction of federal policy, effective management deci- of light with matter. In 1937, he read a report sions, and long association of key personnel. of a un,que process of facsimile transmission An invisible college, need for supporting inno- that dispensed with chemically treated paper. In this process, a pencil of ions was used to vations,and even a serendipitous discovery pla ed a role. produce an electrostatic image ina scanning The innovation of hybrid corn was distin- pattern on an insulating surface. The electro- guished by the initial recogniti -in of the tech- static image was then developed by dusting with nical feasibility of hybrid vigor, followed by an a fine powder. Strongly influenced by this dis- early recognition of its value it, improving corn closure, Carlson conceived of using ions to pre- production. The initial invention originated out- charge a layer of photoconductive material, the electricalcharacteristics of which would be sidethe marketing organization.There was those of an insulatorin the dark, but which strongevidenceoftheimportance ofthe product champion and ofdirect transfer of would conduct and dissipate the charge in the exposed areas of the image. Powder dusting knowledge between scientists. The hybrid small would be employed to develop the image. grain development was need oriented, with the Carlson immediately filed a patent application, initialconcept originating outside the seed- and then attempted to develop aworking producing company. The international wheat demonstration of the concept, but, working program was also in response to a need, but the concept developed within the innovative or- alone, was unsuccessful. In the fall of 1938 he brought in a physicist, 0. Kornei, to assist him, ganization. and they succeeded shortly in producing the firstcrude demonstration of electrophotog- ph:, r ;idly raphy. Their process consisted of charging sulfur Electrophotography is traced from its con- or anthracene plates by rubbing, and dusting ception in 1937, through its extensive develop- with dyed insulating powder to develop the ment period, to the production and marketing image. The image powder was transferred to of a practical high-speed copier exactly the waxed paper and fixed by heating. kind of machine envisioned by the inventor. Following severalyears of frustrating and Two genera! methods in use today account for unsuccessful attempts to interest a number of most of the market. One employs a reuseable companies in taking over the invention, Carlson photoconductor and delivers copy on plain was able to generate enthusiasm for the concept paper; the other uses a paper sheet coated with at Battelle Memorial Institute. In 1944 Battelle

18 Development of Other De,,eoprnent of ElectrOphoto9raph,c S/ngle- the Photoconductor Systems Other Commerc al Copers

First Successful oevp4opment of Reusable Photoconductor Commercial Coper lialoid.Xelo 1959

agreed to undertake research to improve the Haloid produced and marketed its first copier, invention and to promoteits development. a slow, manually operated device that did not Concerted effort by the team assigned to the gain acceptance in the marketplace. Under the project resulted in several improvements and direction of J. C. Wilson, the product champion, inventions that refined the concept, demon- development and engineering groups at Haloid strateditstechnicalfeasibility, and left no were charged with the task of solving the many doubt that it was ready for the final (and costly) problems to be faced in reaching the goal of a product development and engineering stage of sequentially programmed, fullyautomatic theinnovative process. These improvements copier. In 1959-1960 this difficult and complex were: (1)thediscoveryofthesuperior effort culminated in the production and mar properties of amorphous selenium as the photo- keting of the first commercial machine, the conductor forthisprocess:(2)the use of Xerox 914 Copier, controlled corona discharge to provide uniform, Stimulated by the public announcement of fast charging of the photoconductor surface ; electrophotographyin1948, many organiza- (3) the invention of the process of electrostatic tions began studies leading to the second major transfer of the powder image from the photo- method, which employs a one-time-use coated conductor to the paper sheet; and (4) the in- paper with a composite layer of photoconduc- vention of the two-component developer in tive powder ina resin binder to record the which the pigmentparticlesare carried by electrostatic image. In 1954 G. J. Young and electrostatic attachment to large, heavy carrier H. G. Greig at RCA announced the use of zinc particles. When dustedoverthesuitably oxide as the photoconductive material in such charged photoconductor, the pigment particles a composite layer. Considerable effort has been of the two-component developer are transferred expended in basic and applied studies of the to the charged image areas, and the uncharged properties of zinc oxide and other photocon- background areas are scoured and maintained ductors and methods of improving sensitivity, clean of stray pigment powder by the large spectral range, and other properties. Electro- carrier particles. photography hewn to follow a second com- Electrophotography reached the attenvon of mercial path employing the one-timeuse zinc the Haloid Company* in 1945, generating con oxide coated paper; RCA called it Electrofax. sAerable management interest in its potential A number of companies, under license to RCA as a product addition to the company's line. In and Xerox, have marketed copiers based on the 1947 a licensing agreement was negotiated by coated-paper principle, beginning with Apeco, which Haloid supported the research at Battelle, in 1961. with emphasis on cc:mercialization. In 1950, The early work with anthracene, the first organic photoconductor to be applied to elec- 'Later t-431oidX.E;rox, then Xerox Corpciratiori. trophotography, prompted a search for other

19 organic photoconductive materials. A number major improvement in background cleanli- ofmaterialshavebeen proposed, but the ness and print quality. requirements are severe: for once-used plates, W. E. Bixby, in 1946, discoverer! the superior the material must be relatively low in cost; for photoconductive properties of amorphous reuseable plates, the problem of the softness selenium for electrophotography. and low strength of most organics must be sur- In 1946 R. M. Schaffert invented the process mounted. Photoconductive polymers appear to of electrostatic transfer of the image powder offer the most promise, particularly those with from the reuseable photoconductor surface additives to increase sensitivity. In 1970, IBM to the paper. introduced a plain-paper copier, employing a In 1946 J. J. Rheinfrank used a fine wire reuseable organic photoconductor. The problem stretched across and above the photoconduc- of wear is solved by placing the photoconductor tor surface, to replace needle-point corona on a web that, advanced on demand, presents a charging. The essentially uniform corona new surface as needed to presr-ve the quality along the wire considerably improved the of the copy. uniformity of charge on the photoconductor The past decade has seen a rapid diffusion of surface. Several copiers, both plain- the technology. In 1947 L. E. Walkup improved the wire paper and coated-paper types, have appeared on corona discharge by using a wire grid in- the market here, in Europe, and in Japan. Some serted between the high-voltage wire and the innovativemodificationshavealready been photoconductor surface. Applicationof developed, and other novel processes are in electrical bias to the grid permitted close progress. A greater variety of machines may be control of the magnitude of corona-deposited expected in the future. chargeonthephotoconductorsurface, The Decisive Events. Of the 66 significant avoiding excessive voltages and the possi- events identified, the following 14 were con- bility of electrical breakdown of the photo- sidered to be decisive in the innovative process: conductor. P. Selenyi, in1935, described a facsimile The license agreement between Ha loid and recorder in which the scanned pattern of the Battelle in 1947 marked the first of very electrical signal is stored on an electrostat- important management decisions that com- ically charged insulating surface and devel- mitted Hatoid to large financial risks and oped by powder dusting. This precursor drasticallyinfluencedthe course of the event strongly influenced Carlson's thinking innovation. and led directly to his conception of electro- In 1954 Haloid introduced the first rotary photography. xerographic machine, that is, with the re- C. F. Carlson's invention of electrophotog- useable photoconductor surface on a rotating raphy in 1937, involving the novel concept cylinder. Although not a document copier, of light-image storage on an electrostatically this machine demonstrated the rotary-drum charged photoconductor, was a major break- principle of succeeding automatic copiers. through. C. J. Young and H. G. Greig disclosed the The first reduction to practice of the inven- RCA zinc oxide-resin binder coated-paper tion, by Carlson and Kornei in 1938, demon- electrophotographic process in1954. The strated the technical feasibility and potential coated-paperprocess,with a once-used of the process. photoconductor surface,is the basis of an The Battelle agreement v.ith Carlson in 1944 entire family of copiers. opened the way for the development effort In 1959.1960 the introduction of the Xerox leading to the successful completion of the 14 office copier marked the culmination of major inventions needed in support of the the innovation and the proliferation of a innovation. type of product having a major impact on In 1945 E. N. Wise invented two component society and its functions. powder development, which resulted in a In 1970 IBM introduced a copier with a reuseable organic photoconductor coated on system, in which the information is reduced to a web wrapped around a drum, and designed an I/O table a matrix of inter-industry trans- so that the web can be advanced to replace actions of raw materials, goods, and services, a worn surface. This event appears to have receivedanddeliveredamong the various initiated a new class of machines, producing sectors of the economy. Thus, for Implications of the Case. Among the internal example, the effect of changes in demand for and external factors having an impact on the the products of any one industry on all other innovative process, the inventor's recognition industries may be computed. of the need is clearly and explicitly evident. The clearly defined concept, as formulated This studyillustratesthe difficulties of an by Wassily Leontief, was outlined in his trail- independent inventor in selling his idea to or- blazing 1936 paper. The immediate precursor ganizations that might be expected to recognize events were difficult to trace, even through its potential worth. The influence of both the Leontief, and it must be concluded that the technological gatekeeper and the product cham- development originated in the broad background pion is apparent in two separate time periods. of general economic modeling and statistical The study demonstrates theimportance of analysis. The major aspects of economic theory institutional factors such as management deci- leading to the formulation of his model include: sions intheface of adverse market analysis, the (a) the tableau format for representing inputs heavy investment required for the production- and outputs of the economy, dating back to engineering phase of the innovative process, and Francois Ouesnay (1758), (b) general equilib- the value of a team effort in problem solving rium analysis of Leon Walras (1874), using fixed and in producing the supplementary inventions coefficients of production and representation needed to support the original idea. Partial of the analysis in the form of sir iltaneous Government support of: a special development linearequations, (c} the method of balances effort at a crucial period provided needed in- used for resource allocation decisions by the centives. This study also illustrates the effects Soviet government, and (d) the development of an unplanned confluence of technology, and of national policy analysis, a technique for the importance of informal transfer of knowl- assessing national economic priorities that pro- edge. vided the motivational basis for I/O analysis. The 1936 paper, failed, however, to attract ifput-Output Economic Analysis widespread attention. Leontief's research led to the 1941 publica- Input-Output (I /O) Economic Analysis dif- tion of his first book on 110 analysis. including fers from the other innovations in that it is an the inter-industry matrices of the U.S. economy analytical toot to explain inter-industry eco- for the years 1919 and 1929, the book provided nomic relationships, rather than an innovation insight i nto cause-and -ef feet relationships among leading to a saleable product. It views the whole input, output, prices, Lind consumption patterns economy of a region or country as a single between the two years. Publication of the 1941

IfsiPUT 'OUTPUT ECONOMICANALYSIS

AMILDeveloprnent of 1,'0,noutoonal Capatxtty

Unear Pro9amming tc=t.nce S,41,51)Cs

t t ' E 04vtlorenent cf 110Analysq Puticaboo of I/O Tobla for 1958 by Waft of WNW`r,{, ir Bustnoss Econoosoct 1964 NotAtool ity,orne Accounts 13,ckgeoun.:1Sc once uE ttlYt QTrinC 0.1ockne4

21 book led directly to Leontiers association with in the use of I/Ofornational-income the forthcoming government efforts. accounting, and recommended resumption of In the same year, in the midst of economic I/O analysis by the Federal Government as part expansion due to mobilization for World War of its national accounts. The new program was Congressexpressed concern lest postwar placedinthe Office of Business Economics demobilization force a depression and requested (OBE) of the Department of Commerce in order the Bureau of Labor Statistics (BLS) to study to integrate all national-account activities in a the economic effects of demobilization. BLS single system. In 1964, the OBE published a contracted with Leontief at Harvard University detailed I/O table, using 1958 Census data. This to direct production of an I/O table for 1939 was the first U.S. table integrated with national for use in predicting the effects of demobiliza- accounts. tion in the United States. This table also served The 1958 table represents the culmination of as a pattern for estimating an I/O matrix for the innovative process because it marks the end Germany, which, in turn, provided an overview of the experimental period of I/O history, of the German economy that helped the U.S. Succeeding tables are regularly prepared by the Air Force select bombing targets. The 1939 Federal Government. As this innovation dif- table, published in 1945, was also used to fore- fusedintootherapplications,itgenerated cast steel capacity needed in the postwar year supplemental methods of data treatment and 1947. The resulting prediction a significant analysis. increase was not universally accepted but The Decisive Events. Of the 48 significant later proved correct. events identified, the following 9 were cee)- In order to obtain an I/O matrix describing sidered decisive: the military economy, the U.S. Air Force sup- Leontiof's definitive book of 1941 presented ported BLS, from 1948 to 1954, in a major the concepts of I/O analysis and an inter- effort,calledProject SCOOP. Thisproject industrymatrixmodel.This book was yielded an extensive I/O table for 1947. Many instrumental in developing large-scale support nonmilitary applications resulted from the 1947 of I/O research. table,inadditionto development of the In response to a 1941 Congressional request Emergency and (unfinished)Mobilization for a study of the economic effects of de- Models for the Air Force.In 1953, with a mobilization, BLS contracted with Leontief changeinadministrationoftheExecutive to produce at Harvard an I/O table for 1939. Branch of the Government, Project SCOOP was T- a objective of this contract was to estimate officially terminated, although someeffort the effects of demobilization on employ- continued on an informal basis fr.), a few years. ment. This was the first direct U.S. Govern- Project SCOOP was one of the sponsors of ment involvement in I/O analysis. the first UNIVAC computer and the sole spon- In 1943, BLS favorably reviewed the Harvard sor of the SEAC computer. Without large com- work, and in spite of its deficiencies at the puters, the 1947 table (and of course all future time, recommended continuation at BLS. I/O work) could not have been constructed. Othercontributionstomodeltheory and The firer large-scale digital computer, devel- development, as well as to matrix mathematics oped at Harvard in 1944 by H. Aiken, was andlinearprogramming, were made under used by Leontief to solve the 1939 I/O Project SCOOP. matrix. This work and later tables could not Interest in I/0 work revived under a broad have been processed without the aid of I-Lige study (1956.1957) of the national economic computers. accounts, made bytheNational Accounts The 1945 publication by BLS of an I/O Review Committee (NARC). The National matrix for 1939 marked the first such matrix BureauofEconomic Research (NBER) or- to be published by a U.S. Government agen- ganized NARC at the request of the Bureau of cy. Recognition of its potential application the Budget. The NARC expressed concern that to military planning-programming problems foreign governments were outstripping the U.S led the Air Force to organize project SCOOP.

22 In 1948, Project SCOOP was organized to scale computers, without which the extensive produce an I/O matrix for 1947. This project computation needed for the production of I/O represented the first multimillion-dollar inter- matrices could not have been handled. Informal agencyeffortinmilitaryplanning and transfer of knowledge and the need for suppor- programming. tive inventions were important factors in the The UN-sponsored First International Con- innovation. ferenceonInput-OutputEconomics,in 1952, crystallized world-wide interest in I/O Orti,itiophoTtio!tis It suciictcks analysis. Thiscasedescribesthedevelopment of The NARC report to Congress in 1957 was organophosphorus insecticides to control insect a broad study of national income accounts. predators an indispensable task if the food Itmarked a milestoneinI/O history by needs of the world are to be met and the publicizing its value to the economy, and depredations of insect carriers of disease are to led to the authorization of the 1958 table. be eliminated. The stable broad-spectru.n chem- The 1964 publication of the I/O matrix for icals. such as DDT and other chlorinated hydro- 1958 was the culmination of the innovation. carbons, have performed this task efficiently, Implications of the Case. This innovation and economically, and with dramatic benefits to its applications are intimately associated with mankind. However, unexpected problems have Government policy, planning, and funding, and accompanied their extended use. In part, these therefore have been affected by these external problems are associated with the toxicity of factors to a degree not noted in the other cases such chemicals to man, but of greater concern studied. The innovationis an analytical tool, is their pers'sterre in the environment, and the rather than a product; however, we do find a resultant ecological danger of widespread toxic champion; in fact, this role is played by more buildup in higher animals. Another problem is than one person. The roles of the techlological the ability of insects to develop resistance to gatekeeper and the invisible college are in strong insecticides to which they ../ere initially suscep- evidence. Management decisions were impor- tible a continuing challenge to technological tant factors at various stages of the innovative progress. process. In fact, a period of "management con- The first successful approach to the solution servatism" resulted in a temporary shutdown of these problems derived from the discovery of the process in the U.S. government. There is of the specific properties of the organophos- tittledoubtthattheinnovator,Leontief, phorus compounds, of which a number are recognized the need for the innovation. Leontief commercially important insecticides. Some are served also as an independent inventor, outside systemic insecticides they are absorbed by the organization which completed the innova- the plant, which then becomes lethal to insects tiveprocess. A confluenceoftechnology feeding upon it. Many organophosphorus com- occurred in the timely development of large- pounds are relatively nontoxic to mammals and

u i t

St,,des r Nerve Ttansmss.or, and frvvrne Inhbt,Or,

11,

Need lot irlerdscpltna,v R&D atI. G Farben to Ma rk et ing of Parathion tn,ectc\deAsa, Develop Oroanosphoro< Insect,c,de 4kL American Cyanamid Co. 3947

lary Pe-search To x,cology

T. nonpersistent in the environment, and there is be fairlystablein the presence of lime, a considerable potential for finding highly selec- property then considered important, because tive variants. Analysis of the innovative process field applications of synthetic insecticides some- of developing these insecticides has provided times included additions of lime. The compound insight into the probable directions of future Bladan was prepared in 1939. Only moderately growth and the diversity of chemical means for toxic tohigher animals, itisas effective as insect predator control with minimal environ- nicotinagainst aphids; however, it is not stable mental hazard. in the presence of lime. The discovery, by Lange and Kreuger in None ofthe compounds prepared were 1932,of the toxicityof organophosphorus effective against the Colorado potato beetle. An esters containing fluorine, and the recognition infestation of this insect in Germany in 1944, of their potential as insecticides, marked the and a shortage of arsenate of :ime to combat it, starting point for the subsequent concerted re- compoundedthe dangerof an acute food search effort on these compounds. However, shortage and led to an intensified search by their findings did not evoke immediate response Schrader forasuitable material. He shoe tly within thetechnical community, and these found two compounds, Paraoxon and Parathion, authors did not pursue the subject. First con- effective against the potato beetle and proposed ceptionofthetechnicalopportunity was their application without mixture with arsenate formulated in 1934 by the management of I. G, of lime. Parathion is effective against a wide Farbenindustrie, in recognition of the need for vari( of insects and has a short residual action. an insecticide to replace the toxic but flam- However, itis extremely toxic to humans and mable gases then in use as fumigants. Further- must he handled with great care. more, as an economic measure, the German Parathion was unknown to the Allies at the government had curtailed the importation of end of the war. Its existence was revealed in crop-Protecting substances,chiefly rotenone 1945 in the British Intelligence Objectives Sub- and nicotine, and thereby created an incentive committee (B.I.O.S.) reports of interviews with forthe production of synthetic substitutes. Schrader. Parathion was first marketed in the Gerhard Schrader was appointed to initiate tnis United States by the American Cyanamid Com- research. pany, in 1947. This event is taken to mark the Schrader began his studies by synthesizing culmination of the innovative process for this organic compounds in which fluorine alone was case the production of the first commercial introduced. The management of I. G. Farben insecticide of this type. established a team consisting of the chemist Beginning in 1935, the German government Schrader, a biologist to do insecticidal testing, required that new toxic compounds be reported and a pharmacologist for toxicity studies. The for screening, and the most toxic were classified. properties of the fluorine compounds were only Two compounds, initially prepared by Schrader moderately attractive, and in 1936 Schrader in 1937 and submitted for testing, proved to be turned to the synthesis of compounds with extremely toxic. Given the code names Tabun phosphorus as the central atom. and Sarin, these were selected for manufacture There followed a long sequence of synthesis by the German Ministry of Defense. and testing of organophosphorus compounds in Interest in the toxicological properties of the I. G. Farben laboratories. More than 2000 the organophosphorus compounds spread compounds were said to have been prepared rapidly beyond the German laboratories. The before the end of World War II. When the war British Ministry of Supply launched an investi- began in 1939, the German work was classified. gation, in 1939, of the physiological properties Of the many compounds prepared, Dimefox of the compounds reported in Germany in exhibited systemic characteristics on absorp- 1932. Later the Medical Division of the U.S. tion by the plant from the soil (sprayed with an Army began intensive studies of toxicity and aqueous solution of the compound), the leaves therapy at Edgewoocl Arsenal. become poisonous to insects, A related com- It became clear that the toxicological effect pound, Schradan, prepared in 1942, proved to of the organophosphorus compounds is produced by theirirreversible inhibition of the of the I. G. Farben team of chemist, biologist, activityof the enzyme acetylcholinesterase, and toxicologist. This combination of disci which occurs in nerve tissue in both insects and plines permitted direct focus on the impor- higher animals. Deactivation of this enzyme tant aspects of the problem and efficient resultsin complete destruction of nerve im- screening of candidate materials. pulse transmission and disruption of normal Schrader's decision, in 1935, to investigate nerve functioning. Release of the early informa- fluorine compounds delayed initiation of tion on the insecticides and later the "nerve work on the organophosphorus compounds gases", as they are called, has stimulated inten- at least a year,In view ofI.G. Farben's siveresearch,basic and applied,inseveral knowledge of Lange's earlier work on fluor° disciplines related to enzyme kinetics and nerve phosphoric acid esters, itis surprising that transmission. Schrader did not turn to these at once. In the early 1930's, Dow Chemical Company The 1937 discovery, by Gross at 1. G. Farben, developed independently a general interest in of a relationship between animal toxicity the properties of phosphorus compounds, in- and insect lethality focused attention on this cluding their insecticid IIproperties. The re- vital criterion for evaluation of all candidate search program involved synthesis and screening materials. This led to the discovery of the for toxicity and insect lethality. Their work was mechanism of toxic action and, in turn, to a extended to a search for animal systemics rapid extension of basic research on nerve compounds which, when ingested by animals, transmission and enzyme inhibition. afford protection against insect attack. The In 1937, ,chrader postulated a general struc- effort was successful and led to the marketing ture formula for organophosphorus insecti- of ,Ronnel and Ruelene, the first of a family of cides, which served as a guide for further animal systemics available from various manu- studies. facturers. In 1939 Schrader recognized the need for Other chemical companies in the United lime-stable compounds and initiated efforts States and elsewhere became interested in syn- to produce these. thetic insecticides, some before the end of tha war, but the release of the 8.1.0.S. reports In 1941 the discovery by Schrader of plant created more intensive and widespread interest. systemic action marked the beginning of the A large number of compounds have been establishmentofanextensiveseries of patented and marketed. Their properties extend products having this desirable characteristic. over a wide range of specificity, persistence, The critical need in Germa ry, in 1944, for lethality to insects, and toxicity to mammals. an insecticide to control tl.e potato beetle, The proliferation of successful products and the was recognized by Schrader. At this time needs of mankind have serve; as impetus to the shortage of arsenate of lime led to an search in new directions for methods of insect acute problem of food supply. predator control, as in the use of techniques Schrader's rapid response was the develop- involving insect hormones or sex attractants to ment of Parathion, a broad-spectrum insecti- interfere with the life cycle. cide effective against the beetle, and the The Decisive Events. Of the 42 significant first synthetic compound to reach the mar- events identified in this study, the following 10 ketplace. However, because of the effects of were considered decisive: the war, Parathion was marketed first by The management decision by I. G. Farben, American Cyanamid. in1934, to embark on a comprehensive In 1951 L. Wade predicted that compounds program of development of synthetic iiisect- of the type of organophosphates might be icides assured adequate support, funding, systemically active in animals. This opened and direction to the new venture, in ail area up the development ofa new class of previously unexplored. desirable insecticides. Of parallel importance was the establishment Implications of the Case, perhaps the most characteristic feature of this innovation is that Then in the mid1930's, prompted by obser its success depended upon the full support of vations of the effect of sex hormones on ovula- management over a 10-year period, the effective tion, Kurzrok refined Haberlandt's suggestion work of a competent team, and the dedication by specifying an ovulation-inhibiting hormone of the innovator. Without any of these factors, as the regulator. The idea was still not tech- the project would have bogged down. The social nically feasible, for an orally active progestin and political pressures upon the organization a hormone producing the physiological condi- and the scientific team must have been severe tions of pregnancy was not yet available. in wartime. The concept was unquestionably Meanwhile, considerable effort was directed to need oriented, and the proliferation of products the synthesis of steroids the class of chemical on the market today attests to the success of compounds which include hormones with the the innovation, Parathion, in satisfying the need. desired properties. That the innovation was marketed by a firm Finally, in 1945, a concept of contraception, not responsible for the original concept was a approaching the method finally adopted, was result of the effects of the war on German proposed by Albright.Itinvolved hormonal industry. Supportive inventions, in the form of prevention of ovulation, plus separate hormonal a number of new compounds, were required. control of the menstrual period. The available Government support was provided in Germany. hormones were considered either dangerous or The. e was an effective interchange and transfer ineffective, and no immediate action was taken. of knowledge among the members of the project By 1940, the first of a series of highly im- team. portant events occurred the discovery by R. E. Marks, that diosyeitin. a botanical raw material, cou'd be coneqrted to t.,;,-,!ogicauy The development of the oral contraceptive significant stcc,Eds.Aware of the isolation of pill began with the formulation of the concept diosgenin from the toot of a native yam by in1951, and culminated inits commercial Japanese workers, recognizing the possi- production in 1960. The present study identi- bility that a readily available plant source would fied the decisive events and analyzed their inter- free the steroid chemist from dependence on actions within the innovative process. animal organs, Marker began an intensive search This innovation is the control of conception of the United States and Mexico for an abun- by regulating the release of the egg. Contracep- dant source of diosgenin. Collecting over 400 tioniseffected by simulating conditions of species of botanicals, his search was rewarded pregnancy that are hostile to fertilization. The by discovering such a source in a Mexican yam, earliest recorded suggestion of an oral contra- a plant easily collected without need for explicit ceptivewas made by Haberlandtin1921. cultivation. Having induced temporary sterility by trans- In 1944 Marker organized Syntex, S.A. in planting ovaries of pregnant animals into non- Mexico to produce steroids from diosgenin. pregnant animals, he speculated that extracts Hormoneproduction bySyntexincreased from the ovaries of pregnant animals might be steadily from laboratory to tonnage levels, with administered as an oral contraceptive. However, a corresponding reduction of price. The large- the idea was premature. Progress had to await scale market demand for steroids in the early the identification, isolation, and production of 1950's was for the production of cortisone, the active ingredients in sufficient quantities to particularlyfortreatmentofrheumatoid permit studies in reproductive physiology. arthritis. Considerable progress was being made in steroid synthesis and in preparation of structural modifications exhibiting other biological 'Extension of earher study in TRACES - NSF-0535 effectiveness, including increased progestational (1968/. In order to orovide a historical basis for our activity. The research effort included not only analysis of the decisive events, it was necessary, in an international academic community, but the this and the succeeding two case studies, to make full use of the histotital data available from the TRACES research teams established at Syntex and in protect. otherpharmaceuticalhouses.Two steroid Icrtased K^oveed9e of Hornnona Effacts oo Fierxoduct,c Process

Plodoct rev and Dtve!op,,y,

Research on Ste,o.d Pfopertes MIMIIMENEMS=MMIMIK

svlines4 and StrLATLoe of Improved Stertyds

analogues, norethisterone and norethynodrel, rewarded by the submission of norethisterone eachexhibitinghighprogestational activity by Syntex and the chemically similar compound when administered orally, emerged from the norethynodrel by Searle. In small-scale tests on laboratories of Syntex and G. D. Searle in time volunteers, the products were rated superior to enter the innovative process. progestationalagents,bothinsafetyand In this case of innovation, the initial impetus efficacy. A large-scaleevaluation was now for a safe, sure, and easily administered contra- necessary, and Puerto Rico was chosen as the ceptive method resulted from the concern of site of the experiment. Searle's management, Margaret Sanger of the Planned Parenthood overcoming the traditional position of an ethical Federation and the philanthropist Mrs. Stanley pharmaceutical house that drugs are only for McCormick over the potential danger of exces- cure of disease, and the fear of possible social sive growth of the world population. Early in stigma attached to the term contraceptive, co- 1951 they requested a proposal for a research sponsored the Puerto Rican trials with the program on contraceptive methods from Dr. Planned Parenthood Federation.The trials were Gregory Pincus, of the Worcester Foundation outstandingly successful; they paved the way for Experimental Biology. His response was a for FDA approval of Enovid (Searle's trade proposal to develop an oral contraceptive pill namefornorethynodrel)fortreatment of that would suppress ovulation. He had a clear menstrual disorders in 1957, and for use as an vision of the potential effectiveness of such an oral contraceptive in 1959. Enovid reached the approach to contraception, the probability of marketplace as an oral contraceptive in 1960, high social acceptance of the method of appli- marking theculmination of theinnovative cation, and the potential benefits to mankind process. Syntex's analogous drug also received With his proposal accepted by Mrs. FDA approval for menstrual disorders in 1957, McCormick and funding assured, Pincus became and was marketed by Parke-Davis under the a highly motivated product champion, gener- trade name Norlutin, but its approval for oral ating enthusiasm for the program among his cor,traceptive usewas delayeduntil1962 colleagues and providing direction for a con- (becauseParke-Davis wouldnotenter the certed attack. oralcontraceptive marketin1957). Syntex The approach was not straightforward, for had to find another licensee, the Ortho division the progress of steroid chemistry had not yet of Johnson and Johnson, who marketed the reached a level that would provide the ultimate product under the trade name OrthoNovum. materials. Initial animal and clinical studies of Since the introduction of Enovid, extensive progesterone, an ovulation inhibitor readily efforts have been made to improve the efficacy prepared from diosgenin, confirmed its limited and safety, and to reduce the cost of this and activity for oral use and led to a search for numerous competitive products. bettermaterials.By 1953, the search was The Decisive Events. Of the 75 significant events identified inthishistorical study, 15 The proposal by Pincus in1951, and its were considered to be decisive in the innovative funding, initiated an integrated program to process, as follows: develop an oral contraceptive. As product The isolation and structure elucidation of champion, Pincus led and encouraged his the hormone progesterone, by A. Butenandt colleagues to surmount the difficulties in and others, in 1934, precipitated a race to the way of success. obtain the pure material for studies of the In1953, M. C. Chang evaluated the two physiology of reproduction. 19-nor steroids received from Searle and By 1937, the ability of steroidal hormones Syntex, respectively, and proved their effi- to inhibit ovulation had been demonstrated cacy and safety on animals; this was con- by several workers. The low activity of orally firmed by J. Rock, from clinical tests on a administered progesterone was recognized, small group of women. stimulating an intensive search for an orally In 1954, Pincus offered the concept of cyclic active progestin. control, wherein the drug is withdrawn for H. H. Inhoffen synthesized ethisterone, the a few days to permit a normal menstrual first orally active progestin, in 1938, by a cycle. Avoidance of the physiological and chemical conversion route later used success- psychologicalsymptomsassociatedwith fully by Searle and Syntex in synthesis of failure to menstruate undoubtedly influenced their highly active compounds. the rapid adoption of the product. R.E.Marker'sdiscovery(1941)ofthe The decision by Searle, in 1954, to press the chemical process for converting the steroid developmental effcrt to commercialize the base, diosgenin, into progesterone, stimulated oral contraceptive, was an event requiring his searchfor an abundant plant source. considerable courage in the face of possible societal rejection. Syntex was not yet in a TheorganizationofSyntex,in1944, marking the introduction of an abundant position to initiate commercialization at this time, and the full-scale testing needed for and cheap source of steroids and starting FDA approval would have been delayed for materials for steroid analogues, stimulated research on chemical derivatives, many of a considerable time. Searle introducedEnovid as an FDA- which ultimately reached the marketplace. approved oral contraceptive in 1960. The 1944, M. Ehrenstein and W. M. Allen In marketingofthisproduct marked the demonstrated the progestin activity of 19- culmination of the innovative process. norprogesterone, a structural modification which became the prototype for future com- Implications of the Case. This innovation was pounds, including the Syntex and Searle need oriented; in fact, it was in direct response products of the innovation. to the need expressed by the project sponsor. This account also provides dramatic examples In 1944, A. .1. Birch developed a simplified of untimely prior concept, when the state of synthesis of 19-nor steroids which provided theart wasstillinadequateto supply the impetus and direction ro the steroid chemists necessary technology. The importance of the involved in the innovative process. product champion is againevidentinthis In 1951, C. Djerassi of Syntex synthesized account. Management decisions in the face of norethisterone, one of the two compounds possible societal rejection were crucial here. In used in most oral contraceptive products. this case, the initial invention was conceived In 1951, F. B. Colton of Searle synthesized outside the innovative organization, and sup- norethynodrel,thussharing honors with portive inventions were needed. Government Djerassi. financing was not involved. The effects of an The request for a proposal on contraceptive invisible college and of personal transfer of methods, by Mrs. Stanley McCormick and knowledge, as well as the unplanned confluence MargaretSangerin1951, provided the of technology, were also important within the incentive to G. Pincus and the Worcester innovative process. Foundation to plan a concerted effort. One of the striking features of this case is the complex, truly international interplay of chemical compositions to application, and had the channels of development steroid chemis- begun a systematic study of ferrites. Progress try and physiology. The joint contributions of was undoubtedly affected during the war years, the academic community and industry, and the but by 1946, the importance of compositional role of serendipity were also significant factors. homogeneity and correct oxygen content was firmly established,and in 1947 Philips Laboratories reported experimental applications This innovation involves the production and of ferrites to radio and telephone communica- application of magnetic ferrites, a broad class of tions, in the form of transformer cores, induc- ceramic materials that combine the magnetic tors, and band-pass filters. By 1949, television properties of certain meta!s with the electrical applicationsinhorizontal-sweepandhigh- properties of insulating materials. Some com- voltage transformers, deflection yokes, tuning positions are "hard" or permanent magnets and, slugs, and magnetic shields, as well as loop as such, find application as replacement for antennas forbroadcast -band receivers, were more costly alloy magnets. Others are mag- reported. By 1952, the 100 tons of ferrite per netically "soft", or nonretentive, and are used, month used in the communications and televi- for example, to replace iron cores of inductors; sionindustries indicated widespread market here, the inherent high resistance of the material acceptance of this product. prevents alternating current power losses in the An important extension of the applications core due to eddy currents. With composition of ferrites into the microwave region of electro- tailoredtofitthe desiredproperties, soft magnetic wave phenomena resulted from war- ferrites find many other important applications time needs associated with military communica- such asin communications, microwave tech- tions and radar technologies. Many of these nology, and computers. applications were basedon thetheoretical The initial concept took shape in the Philips behavior of a microwave gyrator, a circuit com- Research Laboratories,Netherlands,inthe ponent whose properties had been described in early1930's,in responseto the need for principle several years before. Following the improved magnetic materials for use in their war, many laboratories, including BellTele- telephone communications business. By 1933, phone Laboratories (BTL), developed increased J.L. Snoek, at Philips, had recognized the interest in magnetic phenomena and in appli- potential of magnetic materials exhibiting low ^ations in the microwave region. Meanwhile, electrical losses and the possibility of tailoring ferrite compositions to meet the requirements for microwave applications were being devel- This case was adapted from the TRACES project. oped by E. Albers-SchoenbergatGeneral

esearch m Magnetic Structure

Advances m TetecommunIcalions Development and improvement Led to Need for H f Magnets of a Varetv of Ferrtes

Techmques Developed for Synthests 0 Magnetic Oedes

The OretCal Sttidel Ceramics. In 1951, C. L. Hogan of BTL recog- on the relation between composition and nized the characteristicsofferritesthat electrical-magnetic properties. Clearly, the satisfiedthe requirementsfora microwave funding of this research was indicative of gyrator, and in effect, reduced the concept to management's recognition of the growing practice. By 1955, the invention had been ex- need for such materials in the telecommuni- tended to several microwave applicationsin cations industry. Snoek served as product circuit elements, such as phase shi rters, delay champion through the early development lines, isolators, and circulators. period. Following World WarII, another class of Thepost-World WarIIestablishment of ferrites, termed square-loop ferrites in reference research-funding agenciesoftheFederal to their unique response to an external magnetic government,starting withtheOffice of field, evolved from military needs for more Naval Research in 1946, allowed significant computerpower. An AirForceprojectat funding of academic and industry research Harvard and an Office of Naval Research (ON R) teams in pursuing programs whose results contract with MIT resulted in developing the wouldserve concept of a static magnetic storage element thenationalinterest.The funding of Project Whirlwind at MIT for the foruse ina digital computer memory. The development of larger, faster computers is storageprincipleisbased on the switching an examplethatmarkedlyaffected the properties of the square-loop ferrite core, the future technology of ferrites. magnetic polarization of which depends upon the previously applied magnetic force. Thus The increased emphasis on magnetic research each ferrite coreis a binary-logic storage ele- at Bell Telephone Laboratories in the late ment, switchabte by the magnetic field associ- 1940's was a consequence of management's ated withsuitable current pulses.In1948, recognition of the need to extend the appli- General Ceramics assigned Albers-Schoenberg cability of ferrites into the higher frequency the task of developing square-loop ferrites. In regions to meet the communications prob- 1952, he filed the first patent on square-loop lems of the future. ferrite compositions. Further work at General The decision, by General Ceramics in 1948, Ceramics and at MIT led to ferrite core com- to bring Albers-Schoenberg from Germany positions with improved properties, including topursue aferriteprogram, marked the faster switching times. Magnetic core memories beginning of a rapid development of ferrite are key components of present-day high-speed technology in thiscompany. Albers- computers. Schoenberg, because of his dedication and Hard ferrites permanent magnet materials his ability to obtain funds from the Signal were developed in the Philips laboratories in Corps and from Project Whirlwind, was able the late 1940's to mid-1950's. Their extensive to serve as product champion of the program, applicationsinthemilitaryandconsumer which ultimately led to the marketing of market range from the cores of permanent- square-loop and microwave ferrite devices. magnet motors to the small magnetic plaques Went and Van Oosterhart reported on the for cupboard-door and shower-curtain retention. magnetically hard properties of barium fer- Therefore, by 1955, suitable formulations rite,in1949. Philips'recognition of its had been developed and were accepted in the economic potential led to the commercial marketplace, for each of the major applications development ofthisimportantclass of of ferrites, thus marking the culmination of the materials. innovation. In the period of the late 1940's to the early The Decisive Events. Of the 65 significant 1950's, realization developed widely that events recorded in this case study, the following softferrites were generally useful in the 7 were identified as decisive: electronics industry, and led to the initiation of considerable applications research, some In1933, J.L. Snoek began to work at with Government funding. The result was Philips on magnetic materials, with emphasis the widespread proliferation of applications 30 as electronic components. V ideo LioeHocordw The invention of the microwave gyrator by This is an account of the development of the C. L. Hogan, in 1951, was a direct outcome video tape recorder (VTR), an instrument that of microwave research funding by BTL that caused a revolutionary change in the operation permitted the establishment of a team of and programming of the television-broadcast experts, but was based on theprevious industry. At first conception of the innovation, theoretical description of the gyrator and on in 1950, the need for a technique to record background research in gyromagnetic phe- video signals for subsequent rebroadcasting was nomena. universally recognized. It would not only solve Implications of the Case. For each class of the time-zone problem in network program- ferrite hard, soft, microwave, and square- ming, but also provide greater programming loop discussed in this account, the need was flexibility for the individual station. ck,ailyrecognized end the potential market The technical situation, however, was far could be visualized. Management decisions were from satisfactory. The requirements for quality highly important; they represented major finan- video recording were unequivocal; to record the cial and technical commitments. The product amount of information in a video signal requires champion was evident at least twice. The inno- a bandwidth (frequency range) of recording vation was the outcome of a confluence of frequencies extendingover 4 millionhertz basicscienceandtechnology along several (cycles per second) versus a typical bandwidth, channels of development. This account demon- forhigh-fidelity audio recording, of 15,000 strates the value of the team effort within the hertz. Simply to extend existing audio tech- innovating organization. Government funding niques would require unrealistic tape speeds of played a major role in some phases of this 1500 inches per second (over a mile per minute), innovation.Supportiveinventionswerere- and correspondingly unrealistic quantities of quired. There was considerable personal inter- tape and size of reel per hour of broadcast change of technical knowledge in the later stages of the innovative process. "This case was adaptud from the TRACES project.

Cre,croonenr of Precd,:rn Mechanisms and Erectron c Feedback Contror

morbod Mra9ntrc 0,o ins and Prasuc Tat

Theo, et,ca' Studies R&D at Anti,

Itnvoscrt Fie( troc.ic Arwr.)(Ifiers Monochrome sec,,d,9 !toad Oetr 90 VTR 1956

R&D at RCA

veroonnent of Rada and T.V.13,0adcast

.?'''ems' Achances rn Theory and CrtCoArY time. Direct-recordingtechniquesdidnot wave with the desired signal. Amplitude modu- appearfeasible,unless supportedby some lation,asusedin.ornmercialradio broad- unanticipated breakthrough. casting, was tried first, without success. Then a In1950, Marvin Camras of the Armour frequency modulation (FM) technique, using a Research Foundation suggested a solution to carrier frequency slightly higher than the desired the tape-speed problem rotating the tape signal bandwidth, was proposed. Although FM recorder head relative to the moving tape. The radio transmission was well known at the time, managementofthe Ampex Corporation, a conventional practice would require a carrier licensee of Armour and a recognized manufac- frequency of at least 40 megahertz. The deci- turerofqualitybroadcast audiorecording sion of the Ampex team to try their FM scheme equipment, considered the VTR an obvious,and was bold,but theresults were completely needed extension of its product line. In 1951, satisfactory and justified the gamble. It turned the decision was made to develop a VTR fol- out that theoretical support of the narrow-band lowing the rotating-headconcept. C. P. FM concept had already been published, but Ginsburg, hired by Ampex as project manager this information was not known to the Ampex early in 1952, identified the four major techni- team at the time. The conceptual system was cal problems to be solved: now reduced to practice, but several engineering Rotating heads of adequate precision, with and production problems had yet to be elimi- appropriate tape transport. nated. The decision was made to develop mono- Servo techniques to control head-to-tape chrome VTR first; this reduced the bandwidth positioning. requirements from 4.5 to 2.5 megahertz and simplified the production problems to be met. Servo system for reel-toreel tape positioning. Meanwhile, a market study had been made Carriermodulation with sideband width for the Ampex Board of Directors. The report comparable to the video signal bandwidth. was unfavorable, but Ginsburg persuaded man- On Ginsburg's project team was a young agement to continue. In 1956, the project was technician, R. M. Dolby, who rapidly solved publicly demonstrated at the annual meeting of the problem of servo techniques for precise the National Association of Radio and Tele- tape positioning. Within 10 months, the first vision Broadcasters (NARTB). During the first crude model of a rotating head tape-transport day of the demonstration, Ampex booked sales system hadbeendeveloped,and progress ofnearly$5 million of monochrome VTR appearedto besatisfactory.However, the machines, then equivalent to nearly 30 percent project was terminated officiallyfor a year of the company's annual business, thus bringing becauseof internalconflict;nevertheless, the innovation to its culmination. Ginsburg continued his work after hours until Unknown to the two contenders, the VTR the project was renewed. The rotating head developmentwasactually a race between was now a sophisticated precision device, with Ampex and RCA. Ruling out the rotating head four heads set in a high-speed rotating cylinder, as impractical, RCA took two approaches in the against which a 2-inch wide magnetic tape was early1950's: direct recording and multiple- rapidly drawn parallel to the axis of the head. channelrecording. The direct-recording ap- Thus the magnetized track was a succession of proach was soon recognized as impractical, and transversehelical segments. The problem of major emphasis turned to a multiplexing tech- synchronizing the signal from one segment to nique in which the recorded video signal was the next was also solved. dividedinto10 channels,each carrying a Certainly the most serious problem was that portionofthebandoffrequencies. FM of the frequency limitations of direct tape recording was also ruled out as impractical, and recording, which, in the period of the innova- a further constraint was imposed that color tion, was about 100 kilohertz. For recording transmission be recorded. Nevertheless, con- color video signals, a bandwidth of 4.5 mega siderable progress had been made when Ampex hertz is required; thus direct recording is im announced its monochrome VTR. RCA reorgan- possible. The solution is to modulate a carrier ized its development approach along the lines of Ampex, but added color capability, and to proceed with engineering, production, and entered into a cross-licensing agreement with marketing plans. Ampex. Thus a significant contribution was Implications of the Case. This account is provided to Ampex's later development of its highlighted by recognition of the specific need cotor-recording capability. by the management of Ampex and by the dedi- The Decisive Events. Of the 77 significant cation of the product champion and his research events identified, 5 were considered to be deci- team. Based on the Camras concept (innovation sive, as follows: conceived outside the company) and the com- The inauguration of regular TV broadcasting pany's internal expertise in the recording field, by the BBC, in 1936, marked the beginning the final product emerged in only 6 years. This of this vast industry. Without the potential does not imply that the ambience of science andtechnology made no contribution; the demand for a VTR by this industry, itis unlikely that the innovation would have been historical account tracesthebackground developed. through several channels of development such as electronics, radio and television broadcasting, The rotating-head concept of Camras was unique and highly innovative. Without it, magnetic theory, magnetic recording materials, the project would not have progressed far, and magnetic recording systems. In the absence of this entire historical background, the Camras but the concept posed difficult problems of head design and of track positioning and concept would have been meaningless. No out- sideassistanceof Government funding was synchroni zat ion. involved in this case. The innovation, causing a The decision of a small company like Ampex "revolution" within the TV industry, promoted to embark on an ambitious program of this changes in the nature and frequency of broad- type was courageous, even though it was casts of mobile transmissions, such as news and based on recognition of the potential sound- sports events, and in the use of instant replay, ness of Camras' concept and on the com- time-zoneplanning,editing,and program pany's considerable experience in the storage. An unfavorable market analysis failed recording industry. to halt the effort; the product champion pre- The successful development of servo tech- vailed. Supportive inventions were needed. As niques and tape-head synchronization by entrepreneur, Ginsburg contributed to the inno- Dolby was crucial to the overall innovation. vative process not only his personal drive and The successful incorporation of FM recording guidance, but a high order of managerial insight into the VTR system completed the develop- and directionregardingDolby's work that ment of the concept into a full reduction to maximized thelatter'scontributions to the practice, and provided management impetus project.