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The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).

This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.

The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.

This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.

This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.

Researchers continue to seek understanding of industrialization as a state managed process. How to create and implement new industries based on advanced knowledge is on the policy agenda of many advanced nations. Measures that promote these developments include national capacity building in science and technology, the formation of technology transfer systems, and the establishment of industrial clusters. What these templates often overlook is an analysis of use. This chapter aims to increase the understanding of the processes that embed new solutions in structures from an industrial network perspective. The chapter describes an empirical study of high-technology industrialization in Taiwan that the researcher conducts to this end. The study shows that the Taiwanese industrial model is oversimplified and omits several important factors in the development of new industries. This study bases its findings on the notions that resource combination occurs in different time and space, the new always builds on existing resource structures, and the users are important as active participants in development processes.

China's defense industry is analyzed by comparing the technical level of the military and civilian products manufactured by China's nuclear, space, aviation, shipbuilding, ordnance, and electronics industries with their advanced counterparts. Generally, China's defense industry is about 20 years behind the global leaders. Thus, it is inappropriate to declare China's emergence as the world’s second military power. However, if it continues on its current development trajectory, it will attain that status in the near future.

Rather than organize as traditional firms, many of today’s companies organize as platforms that sit at the nexus of multiple exchange and production relationships. This chapter considers a most basic question of organization in platform contexts: the choice of boundaries. Herein, I investigate how classical economic theories of firm boundaries apply to platform-based organization and empirically study how executives made boundary choices in response to changing market and technical challenges in the early mobile computing industry (the predecessor to today’s smartphones). Rather than a strict or unavoidable tradeoff between “openness-versus-control,” most successful platform owners chose their boundaries in a way to simultaneously open-up to outside developers while maintaining coordination across the entire system.

This paper highlights that the strategic use of design, a competitive pattern typically associated with creative industries, those creating and trading meanings, also characterizes industries that produce functional or utilitarian goods not typically considered creative. The paper explores the origins of this phenomenon in the context of three industry settings: cars, speciality coffee and personal computers. The analysis theorizes three distinct strategic paths that explain how design may become an institutionalized aspect of competition in industries that are not creative. We explain how firms link their products to the identities of their users, how design is linked to stakeholders' emotions and visceral reactions to products and how intermediaries are relevant to enhancing attention to design. Illuminating these strategic paths allows harnessing some of the well-established understandings about competition in creative industries towards understanding competition in noncreative industries.

The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.

This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization, increased innovation, and possibilities to perform development activities in parallel. However, the differentiation of product development among a number of firms also implies that various dependencies need to be dealt with across firm boundaries. How dependencies may be dealt with across firms is related to how product development is organized. The purpose of the paper is to explore dependencies and how interactive product development may be organized with regard to these dependencies.

The analytical framework is based on the industrial network approach, and deals with the development of products in terms of adaptation and combination of heterogeneous resources. There are dependencies between resources, that is, they are embedded, implying that no resource can be developed in isolation. The characteristics of and dependencies related to four main categories of resources (products, production facilities, business units and business relationships) provide a basis for analyzing the organizing of interactive product development.

Three in-depth case studies are used to explore the organizing of interactive product development with regard to dependencies. The first two cases are based on the development of the electrical system and the seats for Volvo’s large car platform (P2), performed in interaction with Delphi and Lear respectively. The third case is based on the interaction between Scania and Dayco/DFC Tech for the development of various pipes and hoses for a new truck model.

The analysis is focused on what different dependencies the firms considered and dealt with, and how product development was organized with regard to these dependencies. It is concluded that there is a complex and dynamic pattern of dependencies that reaches far beyond the developed product as well as beyond individual business units. To deal with these dependencies, development may be organized in teams where several business units are represented. This enables interaction between different business units’ resource collections, which is important for resource adaptation as well as for innovation. The delimiting and relating functions of the team boundary are elaborated upon and it is argued that also teams may be regarded as actors. It is also concluded that a modular product structure may entail a modular organization with regard to the teams, though, interaction between business units and teams is needed. A strong connection between the technical structure and the organizational structure is identified and it is concluded that policies regarding the technical structure (e.g. concerning “carry-over”) cannot be separated from the management of the organizational structure (e.g. the supplier structure). The organizing of product development is in itself a complex and dynamic task that needs to be subject to interaction between business units.

During the past decade, sub-national government agencies in the late industrialized nations have taken on greater responsibilities in the area of economic and industrial planning. This has been especially true in Mexico where fiscal and planning decentralization, shifting local politics, the recent entry into the North American Free Trade Agreement (1995), the peso crisis and resulting job-loss (1995–1997) and the latest wave of investment opportunities (in part an outgrowth of NAFTA) have, to varying degrees, facilitated greater intervention in the local economy by state-level planning and development authorities. Since the mid-1990s most state governments in Mexico have substantially increased the number of staff and working budgets of their economic development ministries.

Computer systems firms in Silicon Valley are responding to rising costs of product development, shorter product cycles and rapid technological change by focusing and building partnerships with suppliers, both within and outside of the region. Well-known firms like Hewlett-Packard and Apple Computers and lesser known ones like Silicon Graphics and Pyramid Technology are organized to combine the components and sub-systems made by specialist suppliers into new computer systems. As these firms collaborate to both define and manufacture new systems, they are institutionalizing their capacity to learn from one another. Three cases - a contract manufacturer, a silicon foundry, and the joint development of a microprocessor - illustrate how inter-firm networks help account for the sustained technological dynamism of the regional economy.