ABSTRACT
This chapter provides a much more simplified framework of focusing devices that generate different patterns of innovation that is core-driven and bottleneck-removing innovations, and discuss the managerial implications. It presents a basic model of focusing devices, examines their effects on the rate and direction of innovation, compares the relative dynamic efficiencies, and discusses the implications. The chapter considers management of focusing devices as innovation probability maximization and discusses several managerial challenges. It provides a simple conceptual model of a technology system and shows how interdependence of technology components affects the direction of innovation. If technology components are interdependent, it is peripheral capabilities that must be highlighted in managing innovation processes. Innovation probability should be the unit of analysis in the face of uncertainty, and other factors such as knowledge and capabilities are instruments in the management of innovation probabilities. Even if technology components are internally procured, divergence from innovation probability maximization can take place.
