R&D and international business competition Flashcards
Briefly discuss the evolution of R&D management. How important is R&D to international business?
The evolution of R&D management:
- R&D as a function
- R&D focused on current business and market needs
- R&D / production and R&D / marketing
- R&D serves innovation as a business process
- Networks of collaborating organisations
- Core competences
- The virtual R&D organisation
- R&D “as a business”
- Knowledge management
- e-business, e-R&D, e-science
In order to become and stay competitive a firm needs to develop its R&D and acquire technology. As technology is a source of competitive advantage, an international business must focus on its R&D, which is why it is very important.
How to manage technology in a multi-national and multi-product company? Why is it difficult to consider technology as a profit centre or as a unit of measure?
Management should not neglect the development of a technology strategy in a multi-national and multi-product company.
It is difficult to consider technology as a profit centre or as a unit of measure because:
- Its boundaries are often fuzzy and spill over into several product areas
- TLC might be longer or shorter than PLC
- Ordinary ROI criteria may not apply
Briefly discuss the technology planning framework. Provide examples as necessary.
For a company to stay competitive it must go through the three stages of the technology planning framework.
Stage 1: Technology scanning and audit (firm level)
- Acquire technologies, sell unwanted technologies
Stage 2: Development strategy (technology / product level)
- Acquire / upgrade to develop product, joint R&D, technology transfer to and from supplier
Stage 3: Implementation and utilisation (country level)
- Technology transfer to Licensee / Joint venture partners, technology transfer to affiliates
Example: LEGO and Nokia
For a MNC, what should be considered when implementing its R&D internationally?
A MNC should consider high level of inter-firm collaboration in an international context as:
- Technologies have become more complex
- The innovation process has been accelerated
- R&D has become expensive
