Abstract
Innovative social technologies, especially new communication technologies, allows for improving knowledge management processes. One of the managerial tools of communication in specific places are different e-technologies as well as artificial intelligence, which could be used in the consumer approach process as well as the supply side approach. The concept of ambient intelligence means a creation of the clusters of intelligence of high-tech environments—artificial intelligence, business modeling, and brand models application. This concept corresponds to the new age based on the “mobilization of ideas, knowledge and expectations” and technologies, which can be used also in branding, as for instance, experience economy concepts. The proposed chapter will deal with the concepts of the innovative social technologies and branding approaches in form of different models. This is a conceptual research approach, which can be applied in the exploratory study in several countries or used for specific research purposes.
TopInnovation – A Theoretical Framework
The theory of innovations is based on the Schumpeter’s Theory of Economic Development created in 1911 (Schumpeter, 1934, 1939, 1943), but the first roots of innovation had started already in the industrial developments of the 18th and 19th centuries, especially in the ideas of classic economists Smith and Ricardo.
Smith criticized the mercantilist approach prioritizing production paradigms and believed that consumption is a driving force of any development and innovation in a society. This argument has been used in critiques of centrally planned economics and identified as one reason for their failure, which has been discussed by Dosi et al. (1988) and Hall and Williams (2008). A market economy and competition are widely seen as the most favorable environment for innovation. Governmental interventions in the form of protectionism (monopolies, oligopolies), unfair competition (tariffs, barriers, subsidies) constrain innovation and competition. For instance, tightly legislated entrepreneurs cannot stimulate effectiveness, efficiency, and productivity, and depend on public financing.
Nevertheless, Schumpeter, a representative of the Austrian school, was recognized as a creator of innovation theory. One of the first theorists of innovation, a French sociologist Gabriel Tarde, developed numerous important concepts and ideas on innovation. Tarde, similar to Schumpeter, agreed that entrepreneurs as individuals create change in a society, and for this reason, innovative processes are individually based (Pinchot, 1985). Thus, the role of consumers is not as important as the role of producers and individual entrepreneurs, especially inventors. Tarde and Schumpeter considered innovation to be a main source of wealth and a reason for the accumulation of capital. Sundbo (1998) added that both authors believed in “the inventions – the new ideas – solve problems and add elements that either make it possible to save on costs or constitute added value in a society” (p. 51). Despite disagreements of opinion especially concerning sources of wealth and wealth creation, and the role of individuals in a society, the first classic authors, i.e. Smith, Ricardo, Marx, Durkheim, and later Tarde, Schumpeter, made important contribution to development of innovation paradigms in a theory of changing economic cycles (Sundbo, 1998, p. 27).
Key Terms in this Chapter
Consumer-Centric Marketing: Marketing focused on consumers and the role of consumers is changing in this period of time. Consumers and providers of services are getting closer and for this process and consumers are becoming prosumers, which means a very tight relationship among both sides – supply and demand side.
Knowledge: Important competitive tool, which belongs to comparative advantage and is one of the major factors of knowledge economy in destinations. Incremental importance has especially tacit knowledge, which cannot be easily copied. The other type of knowledge is a codified knowledge.
Social Technologies: Social technologies are able to improve a process of communication among the users of a specific place. Modern social technologies are able to use for marketing purposes not only standard devices or methods as mobiles, computers, but also tools as the artificial intelligence, business models (for managing of processes), but for marketing also tools as neuromarketing. Artificial intelligence is not so much common among managers in destinations and the reason is that some of these places are still not equipped with the appropriate devices or do not trust for instance e-marketing.
Innovation: Application of new processes, new economic and social action, which is totally new and not only a repetition of the formerly applied processes (unlike invention).
Destination Competitiveness: The rules of competitiveness applied to destinations, which could be countries, regions and cities. The existence of different sectors, users and development strategies is visible.
Emotional Attachment Created Through Branding: Important in this process are attitudes and attributes of a particular place and how this place branding product is offered to the consumer (visitor or just a user of a territory), where could be crucial as the outcome brand loyalty and brand equity of the particular place brand.
Competitiveness: Divided into competitive and comparative advantage means an attempt to get the economic hegemony in the global world.