TWO DYSFUNCTIONS IN HIGH-TECH RESEARCH AND DEVELOPMENT
Keywords:Reverse Hierarchy, Paradox of Conservatism by Innovation, Economic Factors, Organizational Factors, Case Studies.
In this paper, I discuss organizational problems in the field of high-tech research
and development in a firm. In particular, two dysfunctional phenomena are
very important because they pose peculiar problems in Research and Development
The first problem is reverse hierarchy wherein the scientific knowledge hierarchy
expands in a direction that is reverse to that of the power hierarchy. In high-tech
industries, forefront knowledge is concentrated in junior scientists who hold little
power with regard to investment decision-making. On the other hand, top managers
of the firm who are located at the top of the power hierarchy usually cannot comprehend
forefront scientific knowledge.