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The acquisition and

exploitation of technology
Draft the technology roadmap
& Invest strategically

Acquisition of technology

Screening through technology auditing


Valuation according to the value network in
the perspective of whole product/service
Prioritizing the relevance, transfer
flexibility, competitive dynamics of
technology
Determining the timing criteria and
scheduling sequence
Selecting the modes of acquisition

Methods of acquiring
technology

Internal R&D process


Joint venture process
Outsourcing R&D
Technology licensing & transfer
Technology purchasing

Factors influenced the


acquisition mode

The relative technology


power/position
The urgency of technology
The scale of investment/resource
commitment
The stage of technology life cycle
The importance degree of technology

Technology acquisition
matrix
Urgency

Scale of
investme
nt

Stage in the Importance


TLC
of
technology

Lowest

Highest

The
emerging
stage

Core or
critical

Lower

The earlier
stage

Core or
base

Outsourcin
g R&D

Low

The earlier
stage

Core or
base

Licensing

High

The latter
stage

Core or
base

All the
stages

External
commonalit
y

factors
Mode

Technolog
y position

Internal
R&D
Joint
venture

Purchasing

High

Low

Lowest
High

No

Exploitation of technology

Open the technology


repository/patent shelf for market
value
Leverage the complement assets of
industry partners
Speed the technology diffusion for
the dominant design (de facto)
Define and establish the industry
standard (de jure)

Exploitation modes

Internally integrated into the


product development
Outsource manufacturing or
marketing
New joint venture for applications
Technology licensing

Factors influenced the


exploitation mode

Relative market/industry position


Urgency of application (competition
pressure)
Complementary requirements
The scale of investment
The stage in the TLC
The importance degree of technology
The unexpoitated potential of
technology

Technology exploitation
matrix
Urgenc
y

Lowest

Lowest

Mode
Internal
developme
nt

Scale of
investment

Industr
y
positio
n

complements

factors

Stage
in the
TLC

Lowes Highes The


emergin
t
t
g stage

Importanc
e of
technolog
y

Potenti
al

Core or
critical

Narrow
est

Outsourci
ng Mft. &
Mkt.

Lower

High

High

The
earlier
stage

Narrow

Joint
venture

High

Low

High

The
earlier
stage

Broad

Licensing

High

High

Low

The
latter

Lowest

Common Broades
or minor t

Technology creation
through R&D

Fund/co-fund the private/public


R&D center for basic researches
Search the distinguished
technology landscape
Reach/touch the research center
for technology awareness & license

Stages of technology
development

Basic research

Applied research

Specific knowledge for mission purposes or


breakthrough

Development

Generic knowledge
Exploration of curiosity

Proprietary knowledge of novel application


systems, or products

Technological enhancement

Continuous innovation for market value

Technology portfolio

Diversity of technology
investments

Emerging
stage

Basic/applied Research
Emerging technology

New generation technology


Growing
stage

Product/process innovation
Technology transfer

Mature
stage

Maintenance of competitive advantage


(product/process/market)

Justification of R&D
expenditure
Low
Commitment

Middle

Exploration
oriented R&D

Ris
se ky a
i
op zing ppro
po
a
rtu pote ch
nit nti for
al
y

Uncertainty

High
Middle
Low

Large

Overhead
expense

Options of
Strategic
R&D

Co
fo ns
r s er
ha va
re tiv
ho e
ld ap
er pr
s oa
in ch
te
re
st
s

Commercializat
ion oriented
R&D

Return of
investment

The government and


military role in R&D

Mission-oriented R&D

Meeting the exploration task & functionality


requirement regardless of cost

Diffusion-oriented R&D

Commercialization purpose
Employment consideration
GDP growth
Industry reformation & transformation
Competitive advantage for global
exports/market entry
Cost sensitivity

Global management of
R&D

Consideration of technology acquisition

Coping with the variation of local customer preference

Technology-push innovation
Market-pull innovation

Meeting the transformation of regulation (host &


guest countries)
Outsourcing the manufacturing partners
Japanese style global R&D: establish the information
division for product differentiation
European style global R&D: acquiring the entire
sources of startups
American style global R&D: hunting the oversee
talents through global R&D laboratories

Strategic technology area

Define the demanding technology or


discipline
Which is suitable to which?
Articulate the real profitable
product/service
Propose a valuable segment for
targeting

Extended readings

Wheelwright, Steven C. and Kim B. Clark (1992),


Revolutionizing Product Development : Quantum
Leaps in Speed, Efficiency, and Quality, The Free
Press.
Mitchell, Graham R. and William F. Hamilton,
(1988), Managing R&D as A Strategic Option,
Research-Technology Management, May-June,
pp.15-22.
Mayer, David and Martin Kenny (2004),
Economic Action Does Not Take Place in a
Vacuum: Understanding the Ciscos Acquisition
and Development Strategy, Industry and
Innovation, 11(4), pp. 299-325.