Creation

This chapter (“Creation”) explores the process by which high-tech companies generate the first iteration of their new product, process, or material. At this stage, the technology is still incomplete and generally incapable of competing effectively in a mainstream market. However, it is still commercially functional and able to attract certain niche customers composing a possible beachhead market. The chapter identifies the six critical levers of survival required for a firm to reach this important benchmark. In doing so, it considers the significance of early-stage strategic alliances in providing firms those levers of survival they failed to secure during the project selection phase. The chapter argues that, by bringing into the deal needed levers, such alliances can be an essential component in the successful realization of the creation phase of the R&D cycle. The chapter presents case studies of innovations in wireless communications and nanotechnology to show how these levers function in real-world technology creation and to underscore the relevance of early-stage strategic alliance formation in the radical innovation process.