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Memo 1: The Linear Model of Innovations

Technology development is in overall believed to be the key-determinant factor in economic success of firms and their regions, which can furthermore be divided into “Process innovation”, and “Product innovation”. The Linear model of technological change is one model that explains technological development. It has however been subjected to several criticisms, that brought up several shortcomings.
The Linear model suggests that innovation can only be determined and realized in four chronological steps, which are 1) Basic & Applied research, 2) Product & Process development, 3) Production, and 4) Diffusion & Marketing. It also states that if R&D is increased by a certain level, innovation will take place in a corresponding way/amount. However, the next paragraphs will clarify that the Linear model tends to fail, especially in the light of trajectories of technology transfer, and policy applications in developed & developing countrie...