Barriers to Matching New Technologies and Market Opportunities in Established Firms

In industries that produce high‐technology products or are reliant on technology for administrative or manufacturing processes, it is essential appropriately to link technologies to markets in order to increase shareholder value and to build future cash flows. Research and development (R&D) allocations in such industries are greatly dependent on forecasts of the R&D project's estimated potential contribution to future cash flows, which is related to the project's ability to satisfy current or future customer needs. The resource allocation decisions are difficult, however, since both markets and technology are likely to be highly uncertain. Although the innovation literature ably has addressed specific relationships between certain factors and new product development outcomes, less attention has been given to obstacles faced in linking technology to markets. Grounded in a literature‐based discussion of technology and market opportunity, the authors develop a conceptual framework for identifying and understanding the barriers facing managers in the process of matching technologies to market opportunities. Technology and market barriers include technology‐market linkage, technology availability, technology and market capabilities of competitors, and business model feasibility. Strategy and structure barriers include competition for limited resources, technology capabilities, technology portfolio goals, current market strategies, and competition for control of market charters. Social and cultural barriers include interpretive and communication barriers between functional units and language and cultural barriers within the technology workforce. The article concludes with implications for researchers and managers. The conceptual framework presented here can encourage the development of a stream of research in the area of technology strategy and planning processes, allowing researchers to improve our understanding of the process of technology innovation. Managers can use the framework as a guide for addressing a wide range of issues related to the process of matching technologies to market opportunities. For example, rather than relying strictly on cash flow projections for estimating the value of a new technology, managers also should consider how the technology could create new market opportunities or could reshape existing ones.     

Management of R&D for reduction of technological delay: a strategic viewpoint

The establishment and effective use of R&D potential is considered as a way to reduction of technological delay. On the basis of analysis of alternative starting positions of a follower on the technological scene the adequate trajectories for technological pursuit are drawn. Five strategies are indicated as the most typical ones. Illustration is given for respective strategies of pursuit based on S-shaped performance development within given technological generation. Conditions and limitations are indicated in order to adapt general analysis to the practice of a company willing to overcome the technological gap and/or reduce the existing delay.     

Radical innovation through internal corporate venturing: Degussa's commercialization of nanomaterials

Internal corporate venturing enables radical innovation within established firms in mature markets. Without effectively designed and managed internal corporate ventures, the organizational constraints of established firms will strongly favour incremental innovation over radical innovation. This paper investigates the evolution of a successful internal corporate venture within a large, incumbent chemical firm, now known as Evonik Degussa, to reveal the challenges, organizational design, and management strategies of their commercialization of radical nanomaterials technology. The commercialization of nanomaterials technology is of great interest to incumbent materials and chemical firms and to independent ventures, but the radical, generic, and capital intensive nature of nanomaterials technology requires organizational and managerial innovation. This case study demonstrates a model to enable growth through radical innovation in nanomaterials, while taking advantage of an incumbent firm's capabilities and complementary assets. Organizational strategies include incubation from a risk-adverse culture, relatively long timelines for evaluation, and a high-level steering committee. Managerial strategies focus on product development, risk reduction, and active risk management.     

A Diagnostic Tool for Identifying Disharmonies Within Corporate Innovation Networks

In an article in the previous issue of JPIM , Vasudevan Ramanujam and Gerhard Mensch introduced the concept of mismatches in the perceptions and priorities of various functional specialists, staff and line managers, and senior managers. These mismatches highlight lack of agreement among key participants in the innovation management process within a given company and indicate problems that could hinder performance of the whole management interaction system. Here Mensch and Ramanujam explore the use of a new managerial instrument that can help technology driven companies that are caught in a stalemate in technology. The technique is designed to improve new product development and commercialization of new technology by diagnosing discrepancies in awareness, sense of urgency, and opinions on technological choices which may exist within the organization.     

Creative Thinking, Values and Design and Technology Education

The development of Design and Technology curricula has always been premised on the importance of the act of designing and of the value of the contingent activity of creative thinking. Despite this, there has been a great deal of uncertainty about methods for developing creative thinking abilities in design and technology students. However, the results of research from cognitive psychology, engineering and invention suggest some promising strategies for application in design and technology classes. Moreover, these strategies are emerging during a time when issues concerning ethics and values are also being raised. This paper presents a brief summary of the research into problem-solving and design. It then explores a range of creative thinking strategies, and of their possible applications in design, and goes on to argue that the strategies and settings that promote creative thinking in design and technology make the area not only one that is suitable for addressing ethics and values, but that it may be one of the major reasons for including design and technology programs in school curricula.     

Technological communities and the diffusion of knowledge

The external acquisition of technological knowledge is a central theme in research on technology management. In this paper it is argued that technological communities may provide a useful unit of analysis to study information and knowledge exchange among scientists and engineers working on a particular research agenda. Based on a worldwide survey of more than 700 individuals engaged in the research and development of neural network technology, the dynamics within that particular community are explored. The primary focus is to compare the characteristics of academic and industrial researchers, with special attention given to the timing of their entry into the field.     

Towards a pre-service technology teacher education resource for New Zealand

The Pre-service Technology Teacher Education Resource (PTTER) was developed as a cross-institutional resource to support the development of initial technology teacher education programmes in New Zealand. The PTTER was developed through collaboration involving representatives from each of the six New Zealand university teacher education providers, Massey University, University of Auckland, University of Canterbury, University of Otago, Victoria University and University of Waikato, working with the National Technology Professional Development Manager. The framework for PTTER is built on four key elements considered to be essential to the education of technology teachers. The four elements are: philosophy of technology, rationale for technology education, technology in the New Zealand curriculum, and teaching technology. The PTTER is a web-based resource aimed at assisting technology teacher educators in the development of their teacher education programmes. The framework is a statement of shared philosophy, purpose and intent and is located on the Techlink website (www.techlink.org.nz). PTTER contains a range of teaching resources and strategies located within an overall framework for initial technology teacher education programmes. This paper describes the rationale for the PTTER framework, the process through which it was developed, explanation of each of the framework’s elements, and concludes with discussion of the framework’s implementation and future development.     

An exploratory study of Principal Investigator roles in UK university Proof‐of‐Concept processes: an Absorptive Capacity perspective

The increasing emphasis on academic entrepreneurship, technology transfer and research commercialisation within UK universities is predicated on basic research being developed by academics into commercial entities such as university spin‐off companies or licensing arrangements. However, this process is fraught with challenges and risks, given the degree of uncertainty regarding future returns. In an attempt to minimise such risks, the Proof‐of‐Concept (PoC) process has been developed within University Science Park Incubators (USIs) to test the technological, business and market potential of embryonic technology. The key or the pivotal stakeholder within the PoC is the Principal Investigator (PI), who is usually the lead academic responsible for the embryonic technology. Within the current literature, there appears to be a lack of research pertaining to the role of the PI in the PoC process. Moreover, Absorptive Capacity (ACAP) has emerged within the literature as a theoretical framework or lens for exploring the development and application of new knowledge and technology, where the USI is the organisation considered in the current study. Therefore, the aim of this paper is to explore the role and influence of the PI in the PoC process within a USI setting using an ACAP perspective. The research involved a multiple case analysis of PoC applications within a UK university USI. The results demonstrate the role of the PI in developing practices and routines within the PoC process. These practices and processes were initially tacit and informal in nature but became more explicit and formal over time so that knowledge was retained within the USI after the PIs had completed the PoC process.     

Competitive strategies and new technology: an empirical investigation in the UK polymer processing industry

This paper examines how companies can achieve competitive advantage by fitting their business strategies to the way in which new technology implementation is managed. In particular, the inter-relationship between strategy, technology and performance is examined. Five strategic types and seven types of technological objectives were used to find combinations which were associated with high performance. It was found that companies pursuing a prospector strategy (a strategy based on product innovation) combined with technological objectives emphasizing marketing, image and technical development were the highest performing group of companies. The lowest performing companies were those where strategy was dominated by price competition.
The general conclusion of the paper is that, in order to achieve competitive advantage, companies need to see technology objectives as an inherent part of strategy. The study was carried out on a sample of twenty companies within the polymer processing industry, but the findings should be applicable to companies in other industries, and particularly to smaller companies.     

世界核电发展及对我国的启示

介绍了我国核电装机、核电技术、核电政策等方面的发展情况;未来我国广阔的核电发展空间及形势;世界核电装机发展、主要国家核电装机、核电技术进步等情况。总结了世界核电发展的经验及对我国的启示：高度重视核电安全、制定科学合理的发展战略及加强核电技术标准化建设。     

Innovation and Product Development Strategies in the Italian Motorcycle Industry

The motorcycle industry in Italy offers fertile ground for anyone interested in developing a better understanding of the role innovation plays in enhancing a firm's competitive position. This industry includes both domestic and Japanese firms, with companies ranging from high-volume manufacturers to specialty or niche producers. Firms trying to gain a competitive edge in this crowded field must contend with not only advances in product and process technology, but also the whims of fashion. In a survey of top-level marketing and product development managers from eight leading firms in the Italian motorcycle industry, Moreno Muffatto and Roberto Panizzolo explore the innovation models these firms employ to enhance their competitive position. Their study has the following objectives: categorizing the various competitors in terms of their product and market strategies and their product development and innovation strategies; highlighting differences between the methods of Italian and Japanese firms competing in this market; analyzing the relationships between firms, as well as the roles suppliers play in the various innovation strategies; and identifying the various organizational models employed by the firms in this industry. Different product and market strategies are identified on the basis of three variables: total production volume, the number of different products offered, and the number of different engine capacities offered. Using these variables, the companies in the study are categorized as volume producers, specialists, or niche specialists. The firms are further differentiated on the basis of the relative emphasis each places on product technology and design, product innovation, product variety, and time-based competition. In the firms studied, partnerships play a key role in new product development. Nearly every firm participates in joint projects, most often involving development of either an entire vehicle or an engine. Other partnerships involve firms in countries that offer emerging markets for the motorcycle industry. Organizational structures and strategies employed by the volume producers in this study include: the large product leader, who oversees concept definition and product planning; the project leaders group, which coordinates all phases of development, including activities assigned to external groups; the project managers matrix, a matrix organizational structure with a strong product orientation; and the business unit program manager, who oversees all projects within an independent business unit.     

The Technology Fair: a project-based learning approach for enhancing problem solving skills and interest in design and technology education

This paper presents an innovative way in which university education can help pre-service teachers become better problem-solvers. The central idea is to use the “Technology Fair” as a means for promoting pre-service teachers pedagogical content knowledge about technological problem solving skills. This innovation is supported with results from a study carried out in autumn 2004. The purpose of the study was to investigate the influence of a procedure of working with primary school children to complete and present a technology fair project, on the educational value and meanings attached to problem solving skills by pre-service teachers. Pre-tests, mid-test and post-tests were administered to the pre-service teachers before, during, and after the preparation of the technology fair, respectively. A number of pre-service teachers were selected and interviewed after the completion of the technology fair. Data were also collected from reflective diaries kept by the pre-service teachers during the preparation phase of the technology fair. Analysis of the results indicates that the technology fair contributes to the development of positive values and attitudes in technology education and has a significant influence on improving pre-service teachers understanding and application of problem solving strategies within the domain of technology.     

Proof of concept processes in UK university technology transfer: an absorptive capacity perspective

Successful research commercialisation within the university domain is predicated upon basic research being developed into technology that will attract funding, ultimately resulting in entities such as University spin-out companies or licensing arrangements. This development process involves considerable risk and uncertainty and may require substantial resources to fund early stage operations while returns are uncertain. Hence there is a need to explore risk-minimisation approaches relating to proving the potential for development while concurrently allocating resources in an incremental manner. This paper focuses on the development of the Northern Ireland Proof of Concept (PoC) process within a University Science Park Incubator (USI) as a particular approach to addressing these challenges inherent in the United Kingdom University technology transfer. Furthermore, Absorptive Capacity has emerged in the literature as an appropriate theoretical framework or lens for exploring the development and application of new technology. Therefore, the aim of this paper is to explore the PoC process within a USI as a means for improving the commercialisation of University technology transfer using an Absorptive Capacity perspective. A multiple case analysis of PoC applications within a UK university is described. From the findings it emerges that Absorptive Capacity influencing factors such as levels of R&D investment, prior knowledge base and integration of stakeholder and technology planning all impact on PoC outcomes. In addition a number of process improvement areas for PoC are identified in relation to the influencing factors within the Absorptive Capacity framework.     

R&D and technology purchase through licence agreements: complementary strategies and complementary assets

This paper reports on a major UK-wide investigation into the role of inward technology licensing and in-house R&D as alternative and complementary strategies in new product and process development.The role of licensing in the technology strategy of the firm can be viewed as the 'buy' in the context of 'make or buy' technology decisions. Such technology purchases may be made for a number of reasons including insufficient in-house resources or gaps in R&D provision stemming from small scale, risk, low investment in research or diversification away from existing research competencies. However, technology markets might have substantial information imperfections and transaction costs. The tasks of finding a technology provider, transferring the technology inwards and absorbing it into commercially successful new products and processes, can inhibit the use of licensing agreements for technology acquisition.
This research, using a sample of 128 manufacturing companies (including both licensees and non-licensees), examines some key propositions around the use of technology licensing. Data was collected on technology strategies, complementary assets, internal organisation and market structure. Analysis of the data suggests that strategies of 'buy and make' are complements rather than alternatives, and that extensive use of licensing requires substantial complementary assets to be in place. The nature of product-market positioning was found to be a significant driver of technology strategy, with firms that pursue product differentiation being the most likely to license. Whilst a priori it might be expected that internal organisation would influence technology strategy, this study was only able to provide weak support for this.     

Enhancing teachers’ technological pedagogical knowledge and practices: a professional development model for technology teachers in Malawi

This paper reports on a professional development that was designed and implemented in an attempt to broaden teachers’ knowledge of the nature of technology and also enhance their technological pedagogical practices. The professional development was organised in four phases with each phase providing themes for reflection and teacher learning in subsequent phases. On-going support, reflection and feedback underpinned the professional development processes to enhance teachers’ prospects of putting aside old traditions and culture to implement new practices in their classrooms. The teachers collaboratively explored new concepts through readings of selected scholarly papers, making presentations of their views generated from the readings and engaging with peers in discussing learning, curriculum issues and concepts related to the nature of technology and technology education. A qualitative analysis of the teachers’ journey through the phases of the professional development showed the teachers’ enhanced knowledge of technology and technology education. However, their classroom practices showed technological pedagogical techniques that reflected their traditional strategies for teaching technical subjects. It is argued that although the teachers’ conceptualisation of learning in technology was still fragile at this point, attempts to shift teachers’ beliefs and practices require deep theoretical grounding and transferring that into technological practices. A professional development built on existing ideas and context helps expand the teachers’ views about the nature of technology and technology education.     

A research and development decision model for pharmaceutical industry: case of China

This paper evaluates prospective technology areas, development strategies, and various innovation resources in China's pharmaceutical sector through the use of a hierarchical decision model. The results indicate that although domestic SMEs are the major preferred innovation alternative, it is followed closely by foreign MNCs. The sensitivity analysis indicates that the effectiveness of policy decisions are influenced by certain high technology areas. Recombinant therapeutic proteins, recombinant vaccines, and monoclonal antibody technologies are identified as the major areas that will influence the priority of innovation resources. The research crafts a research framework to formulate innovation strategies in dealing with the uncertainties of technology development and policy decisions in the biopharmaceutical industry.     

Corporate technology portfolios and R&D performance measures: a study of technology intensive firms

This paper examines the relations between technology portfolio strategies and five commonly used research and development (R&D) performance measures. Patent and financial data of 78 US-based technology companies from 1976 to 1995 were gathered and analysed to investigate how a well-managed technology portfolio can create synergy and affect R&D performance. A technology portfolio can be characterized by its composition and technology concentration. A valuable technology portfolio that consists of patents with higher average citation made and self-citation ratio can have a positive effect on firm value. Our findings suggest that large firms may enjoy advantages for technological innovation because they can exploit synergy effects of their technology portfolios. Technology concentration strategy does not work well because firms focusing on few technology fields can experience diseconomy to patents received since high-quality patents are increasingly difficult to obtain. This paper lays the groundwork for future empirical research on technology portfolio and R&D performance.     

Creating a bridge between university and industry in small European countries: the role of the Industrial Liaison Office

The frequent and intermittent need for new scientific knowledge has resulted in an increasing focus on links between industry and academic institutions. This has been particularly pronounced in the flows of knowledge between the two partners, which may lead to considerable diffusion of scientific and technical knowledge, particularly into the small firm sector. This development could be of particular benefit to smaller peripheral economies, which have demonstrated low levels of indigenous industrial technological development. As a result, universities could become increasingly important for local economic development in smaller countries on the periphery of Europe. However, a greater understanding is required of the pro-active role that the university itself can play in developing strong linkages with industry, particularly through mechanisms such as the Industrial Liaison Office (ILO). In particular, there needs to be an examination of the strategies and policies that are undertaken to increase the process of technology transfer from academia into local indigenous business within smaller countries. This paper will therefore examine the role that universities play in the regional economic development in two contrasting small countries of Europe, namely Sweden and Ireland. Drawing on interviews with key individuals in the processes of technology transfer between academia and industry (including ILOs), as well as secondary data, it will examine the general role and function of the industrial liaison office and how this has changed. It will also discuss the involvement of the university in different types of industrial links, the main opportunities and barriers to the development of links between university and industry, the benefits to the university from industrial links, and the perception of industry’s assessment of the relationship with universities. The research will provide valuable insight into the role of universities in developing innovation and entrepreneurship within the smaller and peripheral countries of Europe and will determine whether these universities are undertaking a pro-active role in encouraging the growth of innovative indigenous industry. This may have significant policy implications, especially with regard to the development of specific regional programmes to encourage academic-based entrepreneurship.     

Understanding MNEs׳ decline in the adoption of locally developed technology standard in China: A positioning and cognitive perspective

Asian countries are becoming more and more active in participating technology standard development. In this paper we study the impact of this change on multinational enterprises (MNEs) using the case of TD-SCDMA, an international technology standard of 3G mobile communications. During the development of this technology standard, MNEs׳ market share dropped dramatically. A major contribution of this study is analyzing the underlying mechanism governing MNEs׳ interpreting TD-SCDMA as a threat rather than an opportunity by integrating two streams of literature. We also discuss the possible strategies for MNEs to maintain their market leadership position when local firms are able to lead international technology standard development.     

技术标准与自主技术创新的探讨

分析了我国石油工业技术和技术标准与发达国家的差距,指出了石油工业发展的关键是自主技术创新,发展的目标是创新技术标准,提出了推动有效采用标准战略、参与标准制定战略的中国石油工业技术标准的发展策略。