*** 9612214 Indeck This research program will construct a novel theory of innovation through an application of current cognitive models of creativity and an application of institutional economics. Cognitive science has posited certain recurring skills in unusually creative people. Institutional economics teaches that many non-technical factors influence innovation, product choice and marketability. Although cognitive scientists and institutional economists have independently examined how innovation is fostered or constrained, this project will combine these disciplines for the first time in a study of the actual process of technical innovation in the magnetic storage industry. A theory will be developed to describe this innovation that is expected to be valuable to other high technology industries such as semiconductors, electronics and pharmaceuticals to enhance the effectiveness of their innovation process. This research program will foster innovation in the magnetic storage industry that has been defined by the federal government as crucial to US international economic competitiveness. This industry that has been highly successful in the face of worldwide competition, should benefit substantially from these process enhancements. ***
