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The field of human-computer interaction (HCI) strives for innovative user interfaces. Innovative and novel user interfaces are a challenge for a growing population of older users and endanger older adults to be excluded from an increasingly digital world. This is because older adults often have lower cognitive abilities and little prior experiences with technology.
This thesis aims at resolving the tension between innovation and age-inclusiveness by developing user interfaces that can be used regardless of cognitive abilities and technology-dependent prior knowledge.
The method of image-schematic metaphors holds promises for innovative and age-inclusive interaction design. Image-schematic metaphors represent a form of technology-independent prior knowledge. They reveal basic mental models and can be gathered in language (e.g. bank account is container from "I put money into my bank account").
Based on a discussion of previous applications of image-schematic metaphors in HCI, the present work derives three empirical research questions regarding image-schematic metaphors for innovative and age-inclusive interaction design.
The first research question addresses the yet untested assumption that younger and older adults overlap in their technology-independent prior knowledge and, therefore, their usage of image-schematic metaphors. In study 1, a total of 41 participants described abstract concepts from the domains of online banking and everyday life. In study 2, ten contextual interviews were conducted. In both studies, younger and older adults showed a substantial overlap of 70% to 75%, indicating that also their mental models overlap substantially.
The second research question addresses the applicability and potential of image-schematic metaphors for innovative design from the perspective of designers. In study 3, 18 student design teams completed an ideation process with either an affinity diagram as the industry standard, image-schematic metaphors or both methods in combination and created paper prototypes. The image-schematic metaphor method alone, but not the combination of both methods, was readily adopted and applied just as a well as the more familiar standard method.
In study 4, professional interaction designers created prototypes either with or without image-schematic metaphors. In both studies, the method of image-schematic metaphors was perceived as applicable and creativity stimulating.
The third research question addresses whether designs that explicitly follow image-schematic metaphors are more innovative and age-inclusive regarding differences in cognitive abilities and prior technological knowledge. In two experimental studies (study 5 and 6) involving a total of 54 younger and 53 older adults, prototypes that were designed with image-schematic metaphors were perceived as more innovative compared to those who were designed without image-schematic metaphors. Moreover, the impact of prior technological knowledge on interaction was reduced for prototypes that had been designed with image-schematic metaphors. However, participants' cognitive abilities and age still influenced the interaction significantly.
The present work provides empirical as well as methodological findings that can help to promote the method of image-schematic metaphors in interaction design. As a result of these studies it can be concluded that the image-schematic metaphors are an applicable and effective method for innovative user interfaces that can be used regardless of prior technological knowledge.
The aim of this thesis is to examine the competition patterns that exist between originators and generics by focusing on the articulations between regulation and incentives to innovate.
Once the characteristics of regulation in pharmaceutical markets is reviewed in the first chapter and an analysis of some current challenges related to cost-containment measures and innovation issues is performed, then in the second chapter, an empirical study is performed to investigate substitution patterns. Based on the EC´s merger decisions in the pharmaceutical sector from 1989 to 2011, this study stresses the key criteria to define the scope of the relevant product market based on substitution patterns and shows the trend towards a narrower market in time.
Chapters three and four aim to analyse in depth two widespread measures, the internal reference pricing system in off-patent markets, and risk-sharing schemes in patent-protected markets. By taking into account informational advantages of originators over generics, the third chapter shows the extent to which the implementation of a reference price for off-patent markets can contribute in promoting innovation.
Finally, in the fourth chapter, the modeling of risk-sharing schemes explains how such schemes can help in solving moral hazard and adverse selection issues by continuously giving pharmaceutical companies incentives to innovate and supplying medicinal products of a higher quality.
This dissertation is divided into three studies by addressing the following constitutive research questions in the context of the biotechnology industry: (1) How do different types of inter-firm alliances influence a firm’s R&D activity? (2) How does an increasing number and diversity of alliances in a firm’s alliance portfolio affect its R&D activity? (3) What is the optimal balance between exploration and exploitation? (1) To answer these research questions the first main chapter analyzes the impact of different types of alliances on the R&D activities of successful firms in the biotechnology industry. Following the use of a new approach to measuring changes in research activities, the results show that alliances are used to specialize in a certain research field, rather than to enter a completely new market. This effect becomes smaller when the equity involvement of the partners in the alliance project increases. (2) The second main chapter analyzes the impact on innovation output of having heterogeneous partners in a biotechnology firm’s alliance portfolio. Previous literature has stressed that investment in the heterogeneity of partners in an alliance portfolio is more important than merely engaging in multiple collaborative agreements. The analysis of a unique panel dataset of 20 biotechnology firms and their 8,602 alliances suggests that engaging in many alliances generally has a positive influence on a firm’s innovation output. Furthermore, maintaining diverse alliance portfolios has an inverted U-shaped influence on a firm’s innovation output, as managerial costs and complexity levels become too high. (3) And the third main chapter investigates whether there is an optimal balance to be found between explorative and exploitative innovation strategies. Previous literature states that firms that are ambidextrous (i.e., able to focus on exploration and exploitation simultaneously) tend to be more successful. Using a unique panel dataset of 20 leading biotechnology firms and separating their explorative and exploitative research, the chapter suggests that firms seeking to increase their innovation output should avoid imbalances between their explorative and exploitative innovation strategies. Furthermore, an inverted U-shaped relationship between a firm’s relative research attention on exploration and its innovation output is found. This dissertation concludes with the results of the dissertation, combines the findings, gives managerial implications and proposes areas for potential further research.
This thesis deals with the economics of innovation. In a general introduction we illustrate how several aspects of competition policy are linked to firms' innovation incentives. In three individual essays we analyze more specific issues. The first essay deals with interdependencies of mergers and innovation incentives. This is particularly relevant as both topics are central elements of a firm's competitive strategy. The essay focuses on the impact of mergers on innovative activity and competition in the product market. Possible inefficiencies due to organizational problems of mergers are accounted for. We show that optimal investment strategies depend on the resulting market structure and differ significantly from insider to outsider. In our linear model mergers turn out to increase social surplus. The second essay analyzes the different competitive advantages of large and small firms in innovation competition. While large firms typically have a better access to product markets, small firms often have a superior research efficiency. These distinct advantages immediately lead to the question of cooperations between firms. In our model we allow large firms to acquire small firms. In a pre-contest acquisition game large firms bid sequentially for small firms in order to combine respective advantages. Innovation competition is modeled as a patent contest. Sequential bidding allows the first large firms to bid strategically to induce a reaction of its competitor. For high efficiencies large firms prefer to acquire immediately, leading to a symmetric market structure. For low efficiencies strategic waiting of the first large firm leads to an asymmetric market structure even though the initial situation is symmetric. Furthermore, acquisitions increase the chances for successful innovation. The third essay deals with government subsidies to innovation. Government subsidies for research and development are intended to promote projects with high returns to society but too little private returns to be beneficial for private investors. Apart from the direct funding of these projects, government grants may serve as a signal of good investments for private investors. We use a simple signaling model to capture this phenomenon and allow for two types of risk classes. The agency has a preference for high risk projects as they promise high expected social returns, whereas banks prefer low risk projects with high private returns. In a setup where the subsidy can only be used to distinguish between high and low risk projects, government agency's signal is not very helpful for banks' investment decision. However, if the subsidy is accompanied by a quality signal, it may lead to increased or better selected private investments. The last chapter summarizes the main findings and presents some concluding remarks on the results of the essays.