Notes and References


*. This chapter constitutes an updated version of ideas contained in Chapter 1 and 2 of Norman, A, (1993) Informational Society: A theory of discovery, invention, and innovation, (Kluwer Academic Publishers: Boston)

1. The purpose of a narrow definition is to keep the discussion focused not to denigrate other types of knowledge such as the humanities. For a discussion of alternative forms of knowledge see: Machlup, F, 1962, The Production and Distribution of Knowledge in the United States , (Princeton University Press: Princeton)

2. Toch, Nicholas,1987, The First Technology, Scientific American , Apr, pp 112-121

3. U.S. Congress, Office of Technology Assessment,1986, Intellectual Property Rights in as Age of Electronics and Information , O TA-CIT-302 (Washington, DC: U.S. Government Printing Office, April) For a recent survey of the issues, see: Benko, Robert P.,1987, Protecting Intellectual Property Rights , (American Enterprise Institute: Washington) For a theoretical analysis of this problem, see: Nordhaus W. D.,1969, Invention, Growth, and Welfare: A Theoretical Treatment of Technological Change , (The MIT Press: Cambridge) For a current information on US intellectual property go to "Intellectual Property Center" on th WEB at http://www.ljextra.com/practice/intellectualproperty/iprel.html or the US Patent and Trademark Office at http://www.uspto.gov/

4. For an interesting and controversial discussion of the dynamics of scientific advance see: Kuhn T. S.,1962, The structure of Scientific Revolutions, (University of Chicago Press: Chicago)

5. Scherer,F.M.,1984, Innovation and Growth: Schumpeterian Perspectives , (The MIT Press: Cambridge)

6. Moritz, Michael, 1984, The Little Kingdom , (William Morrow & Company, Inc: New York)

7. Bate, Robert T., 1988, The Quantum Effect Device: Tomorrow's transistor, Scientific American , Mar

8. This definition is a generalization of Schumpeter's definition of innovation. Schumpeter J. A., 1934, The Theory of Economic Development , Trans Redvers Opie. (Harvard University Press: Cambridge)


9. One of the first expositions of behavioral man in economics is: Simon, H. A., 1945, Administrative Behavior , (The Macmillan Company: New York) For a survey of the economic application of behavior man see H. Simon's Nobel laureate address: Simon, H., 1979, Rational Decision Making in Business Organizations, The American Economic Review , Vol 69 No. 4, pp 493-513. Psychologists have made numerous empirical studies concerning the decision capabilities of man. Their work is surveyed in the Annual Review of Psychology series, see: Slovic, P., B. Fishhoff, and S. Lichtenstein, 1977, Behavioral Decision Theory, Annual Review of Psychology , 28:1- 39 Pitz, G. and N. Sachs, 1984, Judgment and Decision: Theory and Application, Annual Review of Psychology , 35:139-163, and Payne, J., J. Bettman and E. Johnson, (1992), Behavioral Decision research: A Constructive Processing Perspective, Annual Review of Psychology , 43: 87-132

10. Simon, H., 1957, Models of Man . (John Wiley &Sons,Inc: New York)

11. For a survey see Hogarth, R., 1987, Judgement and Choice, 2nd Edition , (John Wiley &Sons: New York). Also see Payne, J., J. Bettman and E. Johnson, The Adaptive Decision Maker (Cambridge University Press: New York)

12. Tversky, A., 1969, Intransitivity of Preferences, Psychological Review , Vol 76 No. 1, pp 31-48


13. Hampton,W.J. and J.R. Norman, 1987, General Motors: What went wrong, Business Week , March 16, pp 102-110

14. PCOrder is on the WEB at http://www.pcorder.com/

15. Chandler, Alfred D.,Jr, 1962, Structure and Strategy , (The MIT Press, Cambridge, MA)

16. Indeed, imitation in business has now been given the colorful buzzword, benchmarking, which means searching the world to find the best practice to implement in the firm. To facilitate benchmarking clearing houses such as American Productivity and Quality Center have been established. For example, see: Altany, D., 1992, Benchmarkers Unite: Clearing house provides needed networking opportunities, Industry Week, Feb 3, pp 25. Online benchmarking organizations are (1) American Productivity and Quality Center at http://www.apqc.org/ and (2) The Benchmarking Exchange at http://www.benchnet.com/

17. The design of experiments of social processes was initiated by Sir Ronald A. Fisher in the 1920s, see Fisher, R, 1960 The Design of Experiments, (Hafner Publishing Company, Inc: New York). There is a vast literature on the subject an numerous types of models for researchers, for example see Graybill, F. (1961), An Introduction to Linear Statistical Models , (McGraw-Hill Book company, Inc.: New York)

18. The much smaller literature on estimation and contral was initiated by control theorists in the 1960s. So defined, innovation in the context of a single entrepreneur is mathematically a problem in estimation and control. Such problems are intractable, see: Aoki, M., 1967, Optimization of Stochastic Systems (Academic Press: New York). Several of the author's technical papers are in this area. For example, Norman A., (1976) First Order dual Control, Annals of Economic and Social Measurement , 5/3 311-321 and Norman a. and D. Shimer, (1994), Risk, uncertainty, and complexity, Journal of Economic Dynamics and Control 18 231-249


19. Poe, Robert, 1988, American Automobile Makers Bet on CIM to defend against Japanese Inroads, Datamation , March 1, pp 43-51

20. Hogarth, R., 1987, Judgement and Choice, 2nd Edition , (John Wiley & Sons: New York)

21. The problem in providing empirical support for this statement is finding a learning situation where technology changes slowly. Studies of tradition agriculture have indicated that traditional farmer's decisions are approximately optimal. For example, see: Hopper,W. D., 1954 Allocation Efficiency in a Traditional Indian Agriculture, Journal of Farm Economics , 47 pp 611-24

22. Einhorn H. J.,1980, Learning from Experience and Suboptimal Rules in Decision Making in Wallsten, T. S.(ed), Cognitive Processes in Choice and Decision Behavior (Lawrence Erlbaum Associates, Publishers: Hillsdade NJ)


23. For the noneconomist an informal definition of economies of scale is that it is more efficient to pursue the respective activity at a larger scale of operations. Systematic research by small, independent formers lacks economies of scale because there would be too much duplication of effort.

24. Gunderson, G., 1976, A New Economic History of America , (McGraw-Hill: New York)

25. Rosenberg, Nathan, 1972, Technology and American Economic Growth , (Harper Torchbooks: New York)

26. See reference 25 and for comment on McCormick see: Bruchey, Stuart, 1975, Growth of the Modern American Economy , (Dodd, Mead and Company: New York)

27. For a survey of the innovations in business organization, see: Chandler, Alfred D. Jr., 1977, The Visible Hand: The Managerial Revolution in American} Business , (The Belknap Press of Harvard University Press: Cambridge)

28. Veysey, Laurence R., 1965, The Emergence of the American University , (The University of Chicago Press, Chicago)

29. See reference 4

30. For example, by 1880 a majority of engineers were university trained. See: Ray, John, 1979, The application of science to industry, in Oleson, A. and J. Voss (eds.) The Organization of Knowledge in Modern America , 1860-1920, (The John Hopkins University Press: Baltimore)

31. Stine, Jeffrey K., 1986, A History of Science Policy in the United States , 1940- 1985, Report prepared for the task force on science policy, Committee on Science and Technology, House of Representatives, (U.S. Government Printing office, Washington, DC) NSF report on science policy. NSF is on the WEB at http://www.nsf.gov/

32. For a reference to the development of industrial research see: Lewis, W. D., 1967, Industrial Research and Development in Kranzberg, M. and C. W. Pursell Jr. (eds), Technology in Western Civilization Vol II (Oxford University Press: London). For an interesting account of the development of industrial research at GE and Bell see: Reich, Leonard S., 1985, The Making of American Industrial Research: Science and Business at GE and Bell , 1876-1962} (Cambridge University Press: Cambridge)

33. The National Technology Transfer Center is on the WEB at http://www.nttc.edu/nttc.html. The NASA Technology Transfer Network is on the WEB at http://ctd.hq.nasa.gov/. The National Information Technology Service is on the WEB at http://www.fedworld.gov/ntis/ntishome.html

34. The IC2 technological transfer program is on the WEB at http://www.utexas.edu/depts/ic2/science.html and the Texas Technological Transfer Association is on the WEB at http://engineer.tamu.edu/t3a/

35. A famous article of the social rate of return of agricultural research is: Griliches, Z., 1958, Research Costs and Social Returns: Hybrid Corn and Related Innovations, Journal Political Economy , October, pp 419-31.


36. Knezo, Genevieve, 1986, Research Policies for the Social and Behavioral Sciences , Report prepared for the task force on science policy, Committee on Science and Technology, House of Representatives, (U.S. Government Printing office, Washington, DC) NSF report on science policy


37. For a discussion, see, for example: Roethlistberger, F. J., 1941, Management and Morale , (Harvard University Press: Cambridge)

38. Hausman, J. A. and D. A. Wise (eds), 1985, Social Experimentation , (The University of Chicago Press: Chicago)

39. U.S. Congress, Office of Technology Assessment, 1986, Research Funding as an Investment: Can we measure the returns? , Science Policy Study Background Report No. 12, (US Government Printing Office: Washington)

40. Port, Otis with R. King and W. Hampton, 1988, How the New Math of Productivity Adds Up, Business Week , June 6,pp 103-113