Technological change and technology monitoring process: Evidence from four Italian case studies

Technology monitoring (TM) may take on different meanings in a company’s day-to-day activities. In some cases it can be interpreted as a technology intelligence methodology, while in others it is understood as technology forecasting or even as technology assessment. These different interpretations are confirmed by an analysis of the literature. This case study examines the technology monitoring process in four Italian companies.For each of the cases considered, first we analysed the way technology monitoring is carried out and then we tried to understand what factors influence the company approach to technology monitoring. Four factors that can be expected to influence a company’s technology monitoring approach came out of this empirical research study: the industry a company operates in, the business model it uses, the importance of technology in the corporate culture, and the level of its R&D resources.     

An empirical analysis of innovation strategies of biotechnology firms in the U.S.

The paper explores the strategies of biotechnology firms in the U.S. through a mail questionnaire study. Based on the responses of 89 companies we have developed strategy archetypes of these firms in R&D, marketing, and technology acquisition. In R&D, we found the firms to follow either incremental or radical strategy. In marketing, the firms use either a defender or an innovator strategy. In technology acquisition, firms differ in terms of their emphasis on licensing or developing new technology. The interrelationship among the strategy groups is weak. The R&D and technology acquisition strategies are related in the sense that aggressive technology strategy dictates radical R&D behavior with emphasis on development of new technology. We have found that firms following aggressive technology strategy tend to follow conservative marketing strategy. This is consistent with an earlier study by of German firms where it was found that firms tend to balance their technical and marketing risks. The paper also provides additional information about the factors considered to be important in product decisions for various strategies.     

Patent portfolios for strategic R&D planning

Empirical research has found a discrepancy between the perceived importance and the actual level of information on competitor's R&D strategies. It has been argued in the literature that patent information might be used to overcome this information deficit. However, empirical research further reveals that patent information is rarely used in strategic R&D planning. The present paper explores this issue and introduces two types of patent portfolios for strategic R&D planning. In patent portfolios on the company level, patenting strategies are identified and the quality of overall technological positions is benchmarked against relevant competitors. In addition, we present a patent portfolio on the technological level, which, as it is known from various technology portfolios, helps companies to manage the allocation of R&D resources effectively. Based on patent data from 21 German, European and Japanese mechanical engineering companies we show the application of both patent portfolios for strategic R&D planning purposes. The patent portfolios prove to be a very valuable tool for R&D decision makers in companies. Based on the experiences made in the case study, recommendation for the effective use of patent portfolios are formulated.     

Knowledge transfer and R&D in pharmaceutical companies: A case study

This paper analyzes the consequences for the knowledge transfer and the organization of R&D of pharmaceutical companies after the acquisition of biotech companies. Based on four in-depth case studies, this paper comes to the conclusion that there is no systematic biotechnological know-how transfer from the biotech to the pharmaceutical company after the acquisition. Instead, the biotech companies remain independent and take over the role of centers of excellence for R&D within the pharmaceutical companies because that is the only way of preserving the innovative capabilities of the biotech company.     

Sequencing of emphases on technology alliances and internal R&D: The effects of the market cycle

How does the market reward technological firms' emphases on alliancing and R&D strategies depending on the phase in the market cycle? I use the 1990s’ “dot-com bubble” cycle and its burst after 2000 to look for joint effects of technology alliances and internal R&D investments on firm market valuations. I show that the existing theory is incomplete without considering (1) the temporal sequencing of emphases on technology alliances and R&D, and (2) the phase in the market cycle. I show that different phases of the market cycle reward different temporal sequences of emphases on technology alliances and internal R&D. This paper contributes to the theory of complementarity of alliances and R&D by pointing out previously unexplored factors that make technology alliances and R&D investments either complements or substitutes.     

Development of absorptive capacity over time and across boundaries: The case of R&D consortia

Absorptive capacity (AC) has been identified as the ability of firms to acquire, assimilate, and apply external knowledge, and thus as a pre-condition for learning from knowledge environment. However, extant literature has focused on AC as (1) a static and (2) a firm-centred concept. In particular, there is little conceptual framing and empirical evidence of how AC develops over time and across boundaries. Taking R&D consortia as the unit of analysis and based on insights from three in-depth case studies of collaborative R&D, our contribution is a framework for AC development over time and across inter-organizational, intra-organizational, and practice boundaries at different stages of collaboration in R&D consortia. Using this framework, we identify a set of mechanisms which enable the development of AC and we discuss the preconditions for these mechanisms. For R&D managers, our research implies that in order to enhance effectiveness of knowledge transfer and learning in R&D consortia they need to develop a strategy that (1) supports learning and AC development throughout the whole cycle of the collaboration, not only by focusing on intra-firm capabilities, but in particular by providing flexible interfaces for overcoming a variety of interaction and learning boundaries between heterogeneous R&D partners, and (2) enables the integration of created and acquired knowledge within the organization once the collaboration is over.     

Creating competencies through collaboration:: The case of EUREKA R&D consortia

This article discusses the originality of European EUREKA consortia. Formed at the initiative of member firms, these consortia generally adopt a decentralised structure. Their main purpose is to conduct applied research, with the ultimate goal of exploiting its commercial opportunities. The consortia strive to ensure collaboration among firms in different countries, and at times, from different industries. Examining the management of R&D consortia, this article focuses primarily on the creation of new knowledge and competencies and on the benefits that member firms can reap from collaboration. Based on 20 interviews with project managers, the article brings to light two main observations: (1) the leader's positioning is a determining factor, and (2) a perfect balance between the firm's technological development and the consortium's strategic orientation facilitates the acquisition of competencies.     

Density-dependent strategic action: Outcomes of structural market commitment in the global integrated circuit industry

This study develops theory regarding organizational survival and technology management in global, technology-intensive industries. Findings indicate that ecological effects on survival localize to the level of separate international markets as an industry becomes global. How firms structurally participate in these markets moderate these ecological forces. Strategic choices about technology management, such as centralized versus decentralized manufacturing and R&D operations, help firms “crack” densely packed markets. The developed theory is tested with firm-level data on the structure and international presence of all organizations in the worldwide population of integrated circuit manufacturers, from 1961 to 1994.     

The characteristics of industrial R&D—A study of major manufacturing industries in Hong Kong

An empirical study of 69 firms in Hong Kong identifies the characteristics of industrial R&D activities. Results of the study show that R&D intensity is highest in the manufacture of professional equipment, electronics, scientific, photographic and optical goods; the type of R&D activities is mainly confined to product research and development, and R&D strategies are mainly the ‘follow-the-leader’ strategy complemented by the ‘me-too-strategy’. Through the analysis of the results, recommendations have been made for the promotion of industrial R&D activities in Hong Kong.     

Separating research from development: Evidence from the pharmaceutical industry

From an organisational point of view, corporate research and development (R&D) has always been viewed as one function. That view, however, has undergone some changes in the last few years, and many major corporations have changed their R&D organisation or re-thought their overall structure on the basis of their technical competencies.With the example of the pharmaceutical industry, in which R&D has a particularly strong role to play, Vittorio Chiesa reports on a survey of nine major pharmaceutical firms which have recently instigated such changes. Among the changes are a separation of the ‘research’ and ‘development’ activities organisationally and sometimes physically. The author puts forward explanations for this trend and weighs the advantages and disadvantages.     

The integration of TQM and technology/R&D management in determining quality and innovation performance

This paper presents an empirical study which examines the co-alignment between Total Quality Management (TQM) and technology/research and development (R&D) management in predicting organizational performance in terms of quality and innovation. This study improves our understanding of the relationship between TQM and innovation based on the following two major issues. First, this study contributes to the understanding of the co-alignment between TQM and technology management along with R&D management by bridging the gap between the two areas which are often addressed in a separate fashion. Second, this study also examines the impact of the integration between TQM and technology/R&D on quality and innovation performance which have been considered as the primary sources of a competitive advantage. The empirical data was drawn from 194 Australian organizations and analyzed using the Structural Equation Modeling (SEM) technique. The findings indicate that TQM shows a strong predictive power against quality performance but no significant relationship against innovation performance. On the other hand, technology and R&D management shows a significant relationship with quality performance but at a lower level than that of TQM, and shows much stronger relationship with innovation performance. In addition, there is strong and positive correlation between TQM and technology/R&D management. The major implication of this study is that technology/R&D management is an appropriate resource to be used in harmony with TQM to enhance organizational performance, particularly innovation.     

Cognitive and interpersonal abilities related to the primary activities of R&D managers

This study attempted to identify the primary activities performed by R&D managers at different supervisory levels, and the cognitive and interpersonal ability requirements that underlie these activities. A task inventory containing 244 managerial tasks was completed by 117 R&D managers in nine organizations. The 48 tasks which managers rated as having spent the most time were factor analyzed, resulting in the identification of three primary activities: project management, personnel supervision, and strategic planning. Furthermore, these activities varied with supervisory level, with R&D managers performing a wider range of these activities with the progression from first-line to upper-level management.Thirty R&D managers later rated the degree to which 19 cognitive and interpersonal abilities were required for performing these primary activities. Strategic planning was rated as requiring significantly higher levels of oral expression, logical reasoning, originality, fluency of ideas, oral defense, and resistance to premature judgement than was required for the other two primary activities. Personnel supervision required a higher level of social sensitivity than was required for the other two activities. Project management required high levels of information ordering, oral fact- finding ability, problem sensitivity, and oral and written comprehension. Implications of the findings for understanding R&D managerial performance and personnel staffing functions are discussed.     

R & D and corporate planning in government

David Peretz is in charge of the Economics Section of the Inter-Bank Research Organization, London. Before that he served as an administrative civil servant in the Ministry of Technology, being for some of that time attached to the Programmes Analysis Unit (PAU) at Harwell, and concerned with studies of the organization of government industrial R & D establishments.

This article is based on a paper submitted—in their personal capacities—by the author and James Robertson (Director of IBRO) to the Government in February 1972. This paper was in turn inspired by the Government's publication of Lord Rothschild's report on ‘The Organization and Management of Government R & D’.

Like other large organizations, governments are having to come to grips with the interaction between long range planning and R & D activities. Changes are called for both in the methods of choosing priorities for R & D projects and in the organization of the Government's own research resources. The implications of ‘corporate’ planning for Government science have yet to be fully recognized.     

The moderating effects of home region orientation on R&D investment and international SME performance: Lessons from Korea

Drawing from the resource-based view, we investigate how firm and country combinations affect international SME performance. Using a sample of 2676 international Korean SMEs, we explore the relationships among SME R&D investment, home region orientation and financial performance. Results show that R&D investment has a horizontally inverted S-shaped relationship with performance reflecting cost leadership, stuck in the middle, and differentiation strategies. We also find that a home region orientation moderates the relationship between R&D investment and performance. Home region orientation positively moderates the relationship when R&D investment reflects cost leadership or differentiation but negatively moderates a stuck in the middle strategy.     

Delayed creative destruction and the coexistence of technologies

Disruptive innovations often engage in a fierce battle with incumbent technologies for hegemony. Past studies on technological innovations are silent about factors that extend the duration of the ‘era of ferment’—that is, the period during which competing technologies fight for dominance. We argue that complexity of the underlying technology, ecological and institutional dynamics may permit coexistence of competing technology regimes. The paper illustrates such coexistence by discussing the persistence of disparate technologies in steel making and kidney disease treatment. We conclude that the process of ‘creative destruction’ can be delayed in certain settings.     

Understanding technological substitution: Generic types, substitution dynamics, and influence strategies

This article develops a framework for analyzing substitution threats posed by young industries to firms competing in more established industries. The discussion delineates three generic types of technological substitution—functional, product, and asset—and explores how long-term substitution patterns may be shaped by (1) the dominant design that emerges for the new product and, (2) improvements that occur in the traditional product. Asset substitution threats are especially serious for an incumbent firm since they can erode the value of the company's existing R&D/ manufacturing capabilities for competition in its principal markets. Possible strategies for influencing the type of substitution that ultimately occurs are considered. The strategies entail entering the young industry and attempting to shape the dominant design that emerges for the new product, or attempting to improve the traditional product along specific price-performance dimensions. The propositions suggested by the framework and the implications discussed should help to provide direction for future research.     

The competitive advantage and strategic configuration of knowledge-intensive, small- and medium-sized multinationals: a modified resource-based view

This study employs a modified resource-based approach to examine the competitive advantage enjoyed by knowledge-intensive, small- and medium-sized multinationals (KI-SMMs). While the resource-based view addresses superior capabilities only, this paper examines both superior and inferior capabilities and their resulting sustainable competitive advantage.Compared to larger knowledge-intensive multinationals, KI-SMMs possess more inferior than superior core capabilities. Despite this handicap, the paper demonstrates how KI-SMMs compete globally by leveraging their relatively superior R&D capabilities and by choosing a strategic configuration that allows them to compete internationally despite their relatively inferior capabilities in marketing and production activities.Our results show that KI-SMMs internalize R&D activities, which are their core capabilities, externalize production activities, in this case noncore capabilities, and internalize marketing activities, for which they have an inferior capacity, but which are, arguably, core capabilities. KI-SMMs compensate for their inferior capabilities in marketing activities through the use of a unique business model which focuses repeat sales to customers with whom a low number of high-value transactions can be maintained.     

Probabilistic dominance criteria for comparing uncertain alternatives: A tutorial

This paper is a tutorial which demonstrates the current state-of-the-art methods for incorporating risk into project selection decision making. The projects under consideration might be R&D, IT, or other capital expenditure programs. We will show six decision making methods: 1. mean-variance (MV), 2. mean-semivariance, 3. mean-critical probability, 4. stochastic dominance, 5. almost stochastic dominance (ASD), and 6. mean-Gini. We will also describe the assumptions about the risk attitudes of the decision maker which are associated with each of the techniques. While all these methods have been previously applied elsewhere, this is the first paper which shows all of their applications in the project selection context, together with their interrelationships, strengths and weaknesses. We have applied all six techniques to the same group of five hypothetical projects and evaluated the resulting nondominated sets. Among the methods reviewed here, stochastic dominance is recommended because it requires the least restrictive assumptions. ASD and mean-Gini are recommended when stochastic dominance is not practical or when it does not yield definitive choices. MV, mean-semivariance, and mean-critical probability are shown to be flawed.     

Improving the Progress of Research & Development (R&D) Projects by Selecting an Optimal Alliance Structure and Partner Type

This paper extends the study of alliance governance structure by examining what alliance structure, coordination mechanisms and partner type best enhance the likelihood of Research and Development (R&D) progress or performance. We specially focus on the coordination and interaction mechanism of alliances, through which we classify the alliance governance structures in order to reflect the more complex alliance types and contracts used in today's R&D. Using data from 255 biopharmaceuticals between the years 2000 and 2004, we found that, ceteris paribus, a moderate degree of inter‐partner interaction and a moderately complex (non‐equity‐based) alliance contract contributes more to a better R&D alliance performance than those structures that are too simple or too organizationally embedded (e.g. equity joint ventures), which possibly increase the risk of misalignment and miscommunication between allies. In addition, due to the reduced opportunism and the diverse resource (e.g. technology) pooled in the alliance, allying with diverse organizational partners such as non‐profit research institutes and universities is more likely to enhance the R&D performance. Our findings provide insightful strategic implications to practitioners in designing an appropriate alliance governance structure and choosing the right partner type for a successful R&D collaboration.