Technology Push: Approach for Innovation in

Peruvian Companies
Raquel M. Sotomayor-Parian Martin M. Soto-Cordova
Universidad Nacional Mayor de San Marcos Universidad de Ciencias y Humanidades
Lima, Peru Lima, Peru
[email protected] [email protected]

Abstract— There is no doubt that assimilation and new models more and more complete and adjusted to the
generation of innovations is one of the factors that has reality of each country.
contributed significantly to the introduction of change in the
business and maintaining its competitiveness, many companies It is important to make an effort to improve the
having attempted to systematize innovation across different knowledge of the theory of technological thrust in the
model, being the "Technology push" - technology push a linear innovation process, because without such knowledge it
model that analyzes the innovation process that occurs from would be even more difficult for managers to manage
basic research as representing science, and culminates with the innovation and to establish the appropriate strategies based
actual sale of a product manufactured, characterized by its on the different innovation models. After all, the utility of
technological capabilities of a particular society are essentially models is to abstract from reality a set of characteristics or
a function of the boundaries of their knowledge, technocratic behaviors that are useful when predicting or manipulating
approach to conceive technological developments in terms of reality [4].
organization of technical development processes and material
inventions. This paper evaluates and analyzes this tool applied In this context, the present article is devoted to the study
to the situation in Peru resulting in force as detailed in two of a review of the literature on this method: Technology
cases of Peruvian companies that have been successful because push, relevant characteristics; focusing its application on the
the country still lacks basic research but it is necessary to use Peruvian reality and analyzing how important or current this
the market pull (response to a need for market demand). theory is or if it is already obsolete for its use, knowing the
Concluding that although this tool technology push is geared contribution that this tool would mean for the Management
more towards leading companies and large, with internal of Innovation in an emerging country like Peru, ending with
departments of R & D, it can be adapted to small businesses final reflections and challenges that motivate the permanent
but is further complicated by the lack of information and by search for continuous improvement regarding innovation.
poor investment for innovation projects. The aim of this article
is to give an analysis of the literature review on the "technology
push" revealing whether it is favorable or not to apply to the II. INNOVATION REVIEW
Peruvian reality as a tool for innovation management. The Innovation process can be understood as "the set of
activities registered in a certain period of time and place,
Keywords— Technology push, innovation, management, which lead to the successful introduction in the market, for
firms, Peru the first time, of an idea in the form of new or improved
products, processes , services or techniques of management
I. INTRODUCTION and organization"[5].
The research, technological development and innovation It was so with the passing of the years, the most
that take place in a country are critical factors to determine successful companies tried to systematize the innovation,
its economic growth, welfare level and international trying to obtain a regular flow of innovations. There are
competitiveness. In addition, all these factors are of great different models that try to explain what the innovation
importance for the survival of organizations because they process consists of and what are the stages or phases that
contribute to placing them in an adequate position to face the constitute it [6]. Being one of the pioneers the Technology
new challenges that arise in an increasingly globalized Push, which had its beginning after the world war and
market [1]. covered during the period 1950-1965, however to this date
Currently, innovation is considered one of the basic there is no clear and definitive explanatory model on the road
factors of development in advanced countries, whose that takes place since an invention arises until it reaches the
purpose is to help forecast the needs of markets and to detect market. All the models collected in the literature present
new products, processes and services of higher quality, deficiencies and questions, to the point that some authors
generating new features at the lowest possible cost. , what conclude that a model of the innovation process has not been
today, is already part of the day to day in all countries [2], developed to date, while others affirm that it seems difficult
sale of a transformed product [3], linking supply with to achieve this objective, even they come to question the very
demand, what was called Technology push, applied theory in fact of trying to develop a universal model of the innovation
many countries, until the mid-60s, when another model of process. For other authors, most models are unable to capture
technological innovation was known, however the evolution all the complexity of the reality they are trying to describe.
of a model to another does not imply an automatic [7].
substitution; Many models coexist and in some cases, their
elements of one, are intermingled with elements of another,
which was what has been happening to the present, emerging

978-1-5386-5447-7/18/$31.00 ©2018 IEEE

A. Technology push
The linear model of innovation or Technology Push OPEN INNOVATION PROCESS
(technological push), considered a first generation, Strategic Character Models
emphasizes the offer of scientific knowledge. This model
Leydesdorff and
assumes that basic research leads to invention, later to Triple helix
Etzkowitz
innovation and finally to dissemination among the consumer.
National Systems of Innovation Lundwall and Metcalfe
In other words, it assumes an orderly progression that goes
from technological discovery, through applied research, Organizational Character Models
technological development and production activities, to
Multidisciplinary teams Mintzberg
conclude new products on the market. The market is the
place that receives all the fruits of research and development Knowledge Management Nonake and Takeuchi
(R & D). A fundamental assumption here is that the greater Chesbrough and
(R & D) greater innovation [8]. Open Innovation
Leadbeater
Collaborative innovation or
This theory, of which, hundreds of products are clear Pisano and Verganti
innovation in networks
example, among them penicillin, or processes: software
development, statistical program, emphasizes the importance
of research in a company, sector or society. According to this B. Characteristics of the linear method
theory, basic research is the source of innovation and a Its linearity, which involves a progressive, sequenced and
society must support scientists so that their discoveries enter orderly staging from scientific discovery (source of
to feed the chain of events described above. Innovation, in innovation), to applied research, technological development,
this model, is the result of direct support to technological manufacturing and the market launch of novelty. The
research, and new products appear because technology has technological capabilities of a particular society are
found an advance that can be commercialized. Noticing that essentially a function of the frontiers of their knowledge [1].
it is an absolutely linear model and that the events follow Useful knowledge for industrial production is based on
each other in sequence [9]. fundamentally scientific principles. The process of
Therefore, it can be more aspired then is the construction "translating" scientific principles into technological
of linear innovation processes within which the stages knowledge is essentially sequential, both in the temporal and
corresponding to the Emergency and Selection of Idea follow institutional levels it includes discrete phases that must be
(decision making by the management team); Invention (R & followed.
D area); Serial manufacturing (Production area); Marketing This approach is of a technocratic nature, since, in a
and Product Dissemination (Marketing department), in case global way, technological evolution is conceived in terms of
it is a new product (Fig.1). organization of the processes of technical development and
material inventions.

III. ADAPTATION TO THE NATIONAL CONTEXT

As mentioned above it is a method that can somehow be
said to be outdated, especially for countries with high
technological development, because at present they do not
use this method of innovation only in very remote cases they
usually use both models mixed or at best the well-known
methods of open innovation, however in Peru, despite adding
efforts to develop science, technology and innovation with
greater skill, the basic research is not representative if you
Fig. 1. Process model for technology push want to compare with countries similar to ours.
Subsequent to this innovation model, several of them So the question is: Could we use some modern
emerged in which it was increasingly possible to optimize innovation method for the management of innovation in the
from the lessons learned such as Table I. country? Yes, it can work, but it is also clear that we need to
intensify basic research, the correct thing would be to
continue using technology push, hand in hand with the
TABLE I. INNOVATION PROCESS MODEL
market pull (response to a need for market). Table II shows
CLOSED INNOVATION PROCESS
the ranking of the food sector (Merco Consumo line) in Peru
based on reputational evaluation instrument based on a
Based in Schumpeter
Technology Push multistakeholder methodology from Merco (Business
ideas
Monitor of Corporate Reputation).
Science Push Ramon y Cajal

Market Pull Freeman TABLE II. RANKING OF FIRMS – FOOD SECTOR

INTEGRATED INNOVATION PROCESS RANKING
COMPANY
2017
Interactive model (coupling) Cooper
1 Álicorp
Chain link Kline and Rosenberg
Systems Integrations and Rothwell and Hippel 2 San Fernando
Networking Model von
A. Case 01: Alicorp FERNANDO”. According to the government, this will allow
Located in the 1st position of the food sector according to it to promote innovation and encourage the use of new
the Ranking of Companies. It has 65 years of foundation, technologies among producers, companies, associations,
however it has developed a great investment in the cooperatives. Also, be the strategic partner to generate added
innovation of its products and the continuous improvement value in their production and ensure compliance with
entering the market 6 new products per month [10]. In 2013, technical standards, good practices and other standards of
this company invested close to 2 million for its Bread and quality and hygiene that allow producers to develop better
Gastronomy innovation center, distributing a large part to quality products and take advantage of market opportunities
infrastructure, implementation of state-of-the-art laboratories local, national and international.
and training. This shows the link between the company and the
It has obtained several distinctions being one of the last university, on the one hand, and at the same time, the interest
the "Effie de Oro 2010" Prize in the category products for the in using different innovation strategies to reflect on the
case "Opal - BioCristales". However, they are not far from company's economic growth. San Fernando applies not only
fulfilling their vision, because "we surprise the markets with the technology push but the market pull, to perform
our aggressive growth and innovation. We transform significant improvements in its production of poultry and
common categories into extraordinary experiences. Our goal meat.
is to be among the 250 largest companies in Latin America" In both cases, the push technology was probably due to
[11]. Initially they used the linear model of technological the fact that they are large companies, information in small
thrust, however the last 5 years have developed innovation companies on innovation is very scarce due to the initial state
on the needs and trends of the market. in which they are recently found and the few cases that exist
are counted.
B. Case 02: Avícola San Fernando
This company was founded in 1948 by Julio Soichi IV. FINAL CONSIDERATIONS
Ikeda. San Fernando S.A. is a Peruvian company dedicated
Innovation allows the company to have new technologies
to the production and commercialization of food for mass
without needing to be acquired from third parties. This is
consumption of the chicken, turkey, pork, egg and processed
important to the extent that the company will be able to
products lines; is a company created from the merger of
increase its technological independence and will be able to
Molinos Mayo with Avícola San Fernando. It exports to
generate a greater and better culture of innovation.
competitive markets such as Bolivia, Colombia, Ecuador and
Therefore, it must be taken into account that changes to the
Panama [12]. It has about 35% of the poultry market
interior and exterior of the company can be sources of
nationwide.
innovation, it can never be forgotten that the company should
It is from 1976 that San Fernando begins to invest in be watching the opportunities that arise from these changes
basic research, from a simple construction of a mill for to respond quickly with innovative solutions.
balanced feed of birds, betting on innovation with a list of
In fact, the analysis of the linear model "Technology
innovative products and processes, obtaining distinctions in
Push" allows us to conclude with a series of reflections and
several areas as First Place in the Business Reputation study
general challenges about the innovation process.
of Inmark Peru - Reputation Institute 2012. It has obtained
several distinctions being one of the last the "2017 Business This model is still valid for emerging countries where the
Creativity" Prize in the Products and Intermediate Services number of research are not relevant figures, to start with
category for the case "Mallki organic fertilizer line". applied research, in turn are focused on obtaining a new
product, leaving aside other innovations (process,
San Fernando currently has 7 hatcheries, 2 balanced feed
organizational, marketing, etc.) and the services sector
plants, 104 chicken farms, 8 turkey farms, 5 pig farms, 12
(whose growing weight in the most advanced economies
egg farms, 2 poultry processing plants and 1 meat processing
points to the need to contemplate the particularities of the
plant. They have also managed to enter international markets
innovation process in this sector) [14, 17].
such as Japan and Latin America. With an investment in
assets of one and a half million dollars, for the Research and In the management of innovation it is important to adopt
Development area of San Fernando that has been working on a global approach, which includes other aspects such as
a project since April 2009 on the production of a natural leadership, learning, organizational culture, organizational
promoter to replace the synthetic ones, the project was structure, measurement and monitoring of results,
carried out in association with the Peruvian University surveillance or competitive intelligence, establishment of
Cayetano Heredia UPCH, and the French Development cooperation networks and alliances, the definition of an
Research Institute (IRD) [13]. innovation strategy, human resources, etc. [15, 16, 18]. The
company can establish highly sophisticated and perfected
Currently, it has a project in the San Martín Region that
innovation processes, but if these are not accompanied and
aims to create a development pole that generates the
reinforced by all this set of elements, the results of the
profitable commercialization and export of agro-industrial
process will be reduced.
products. It should be noted that San Fernando has an
investment plan of more than US $ 100 million for the next Finally, it remains as a reflection. How can we contribute
five years, which will be focused on infrastructure and the to a better articulation of the triple helix in the National
development of new business. Also, recently the Peruvian Innovation System?, which allows us to promote greater
government has granted San Fernando the qualification to dynamism, mainly in the business sector, in innovation
operate as “Center for Productive Innovation and Private activities.
Technology Transfer – CITE agroalimentario SAN
This brief explanatory review of the linear model of [5] Robles, M., & Vílchez, G. (2013). Technological innovation in the
private universities of the Maracaibo municipality / Technological
technology push applied to Peruvian reality shows us that Innovation at Private Universities in the Maracaibo Municipality.
the country faces great challenges to reach the competitive Telos, 1 (25), 186-201.
levels and necessary capacities that align the country vision [6] Aguirre, M.V.C., Anaya, L.A. M.M., Sanchez, P.A.G.V., Austria,
on the same objective: a greater investment in science, M.A.M. E., Cadena, M.MG.G., Arrieta, M.B., B., & Hernandez,
technology and innovation, the same as will be possible with M.J.C. H. (2012). Sources, types and patterns of technological
innovation.
efficient teamwork from all levels that commit all the actors
[7] Velasco Balmaseda, E., & Zamanillo Elguezabal, I. (2008). Evolution
of the Innovation System to march as a society based on of the proposals on the innovation process: What can be concluded
knowledge and where research, development and innovation from your study? European research on the direction and economy of
becomes paramount for the search of new tools that the company, 14 (2), 127-138.
optimize better management of innovation. [8] Peters, M., Schneider, M., Griesshaber, T., & Hoffmann, V. H.
(2012). The impact of technology-push and demand-pull policies on
V. CONCLUSIONS technical change-Does the locus of policies matter? Research Policy,
41 (8), 1296-1308.
Innovation projects under technology push have a very [9] Rangel Gutiérrez, J. G. (2012). Supply and Technology Demand,
high market uncertainty, as it results from uncertainty in the CICATA Units of the IPN (Doctoral dissertation).
potential application areas of existing technologies, and [10] Álicorp, Annual Report, 2017
potential market possibilities and customer needs. To that we [11] Sachi, P. (May 12, 2014). The time has come to consolidate all
would have to add the uncertainty regarding the potential purchases. (A. León, Interviewer)
competing companies and the infrastructure requirements. [12] San Fernando, Annual Report, 2017
Thus, technology-based companies under this innovation [13] Villavicencio, C. (June 06, 2013). Investment in Research and
method require adopting new methods and processes in order Development of San Fernando. (C. Samardzich, Interviewer)
to reduce uncertainty, for example, implies more the use of [14] Rúa, L., Eddison, J., Gómez Calderón, H., & Arbeláez Gómez, LM
anticipatory, exploratory market research methods (e.g. Analysis of Innovation in Companies and Institutions of the Cluster
of Services of Medicine and Dentistry, from the Perspective of the
scenarios, delphi-studies, road mapping). Evolution of Innovation models.
[15] Álvarez Falcón, C. (2014). Innovation, competitiveness and new
REFERENCES business models.
[1] Inche Mitma, J. L. (2014). Models of technological innovation. [16] Cantú, S. O., & Zapata, Á. R. P. (2006). What is the Management of
Industrial Data, 1 (2), 9-16. Innovation and Technology (GInnT) ?. Journal of Technology
Management & Innovation, 1 (2), 64-82.
[2] Betancur, J. D. (2012). Innovation as a source of technology
generation. EAFIT University Journal, 34 (112), 17-38. [17] Pantano, E., & Viassone, M. (2014). Demand pull and technology
push perspective in technology-based innovations for the points of
[3] Kirkberg, A. S. (2013). Creativity, Innovation and Marketing: Keys to
sale: The retailers evaluation. Journal of Retailing and Consumer
Entrepreneurial Success. Caderno Profissional de Marketing-
Services, 21 (1), 43-47.
UNIMEP, 1 (1), 64-74.
[18] Sancho, M. D., Macho, F. J. F., & Vázquez, B. G. (2011). R + D + i
[4] Colomer Ramos, J. (2012). Application of the Scenario Method for
management tools: characterization based on UNE 166000 standards.
the Creative Conceptualization of Innovative Products in the Spanish
In University, Society and Global Markets (pp. 529-540). Spanish
Sector of Ceramic Tiles.
Association of Business Management and Economics (AEDEM).