Technology and R&D Management Overview

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Questions and Answers

What is a crucial requirement for developing an R&D strategic alliance or an external R&D contract?

Large financial investment in the external party

Minimal control over the acquired technology

A well-established relationship with the external party

High level of prior knowledge of the technology involved (correct)

What influences the choice of method for technology acquisition?

The budget allocation for technology acquisition

The size of the organization seeking the technology

The level of prior knowledge of the external third party involved (correct)

The technological advancements in the marketplace

When might a company prefer a research contract with a university?

When the project requires minimal expertise

When the company is already familiar with the technology

When the company lacks in-house expertise for the research (correct)

When the technology is entirely within the company's expertise

Why might a business choose to keep promising research internal?

To maintain close control over the technology Signup and view all the answers

Which factor is not directly related to acquiring externally developed technology?

Ownership of intellectual property rights Signup and view all the answers

What is a major challenge companies face in managing technology effectively?

Establishing a clear innovation race Signup and view all the answers

Which of the following is a type of technology risk that managers need to evaluate?

Competence destruction risk Signup and view all the answers

How can companies manage the risk of appropriate technology?

Using patent and copyright protection Signup and view all the answers

What is a consequence of high technological uncertainty?

Difficulty in predicting effective investments Signup and view all the answers

What has changed in the management of technological resources over the past decade?

An increase in outsourcing R&D functions Signup and view all the answers

When firms wish to be a leader in innovation, what often happens instead?

They become followers instead. Signup and view all the answers

What reflects the volatility and uncertainty of technical development?

Competence destruction Signup and view all the answers

What is a common strategy for managing the risk of technology imitation?

Investing in complementary assets Signup and view all the answers

What is the primary focus of portfolio selection models in R&D project evaluation?

Finding ideas that align with business strategy Signup and view all the answers

Which factor does NOT play a role in evaluating projects according to the portfolio selection models?

The innovative potential of the project Signup and view all the answers

How do portfolio selection models approach the evaluation of R&D projects?

Evaluating the entire set of projects together Signup and view all the answers

What is evaluated regarding the 'time of introduction' of a new product in portfolio selection models?

Whether the product will continue after launching Signup and view all the answers

What aspect of market evaluation is considered by portfolio selection models?

Distribution of resources relative to market size and importance Signup and view all the answers

What is a suitable form of external R&D for a business with a low level of understanding of technology?

Contract R&D Signup and view all the answers

Which of the following describes R&D strategic alliances?

They allow companies to share costs and benefits for specific projects. Signup and view all the answers

What is one disadvantage of joint ventures in R&D?

One company may gain knowledge without giving much back. Signup and view all the answers

What characterizes R&D consortia in Japan?

They consist of 20-50 companies spanning various roles. Signup and view all the answers

Which of the following is an example of a strategic alliance in R&D?

Sony and Ericsson collaborating on mobile technology. Signup and view all the answers

Which term refers to business societies in Japan that form R&D consortia?

Keiretsu Signup and view all the answers

What role does the European Union play in promoting R&D cooperation?

It provides various programs to encourage cooperation. Signup and view all the answers

In the context of R&D consortia, what does the term 'chaebols' refer to?

Family-owned conglomerates in South Korea. Signup and view all the answers

What has contributed to the shortening of the technology cycle?

Advances in technology leading to quicker development Signup and view all the answers

Which factor reflects the growing trend towards collaborative innovation in R&D?

Increasingly distributed networked research Signup and view all the answers

What has been a significant trend in the globalization of R&D?

Increased R&D offshoring by companies Signup and view all the answers

How has the nature of R&D shifted in terms of its focus?

Transition towards service-oriented R&D Signup and view all the answers

What is a challenge faced by R&D managers today?

Managing external R&D sources Signup and view all the answers

How has the technological explosion impacted current knowledge levels?

90% of current technical knowledge was generated in the past 60 years Signup and view all the answers

Which of the following best describes the trend in car manufacturing models?

Reduction of model development cycle from 10 years to 3 years Signup and view all the answers

What is a consequence of the increased productivity in R&D?

Streamlined processes and improved effectiveness Signup and view all the answers

Study Notes

Successful Technology Management

Companies do not have a completely free choice about the way they manage technology
Managers need to be aware of "the appropriate risks" which are the risks of imitations of innovation, which can be mitigated through patents, copyrights, and control over complementary assets
The other risk is "competence destruction" which reflects the volatility and uncertainty of technical development

The Changing Nature of R&D Management

The key changes in the past 10 years in R&D include a technology explosion, a shortening of the technology cycle, and the globalisation of technology
R&D managers are facing these changes:
- The increasingly distributed and open nature of networked research and innovation
- The growth of externally sourced R&D within firms
- Overcoming barriers towards the increased productivity and effectiveness of R&D
- The continued globalisation of R&D
- The relative shift from manufacturing-centred R&D towards more service-oriented R&D
- R&D projects are managed by continuous feedback and information evaluation from stakeholders and sponsors

The Acquisition of External Technology

Developing an R&D strategic alliance or an external R&D contract with a third party requires a high level of prior knowledge of the technology concerned
The level of prior knowledge of the external third party also influences the choice of method to acquire the technology concerned
When acquiring externally developed technology, a business must consider the extent of control over the technology.
Forms of external R&D include:
- Contract R&D
- R&D strategic alliances and joint ventures
- R&D consortia
- Open source R&D

Evaluating R&D Projects

Portfolio selection models attempt to find ideas that "fit" with the business strategy and balance product portfolio.
Project evaluation considers newness, time of introduction, and markets.

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Description

Explore the dynamic landscape of technology management and R&D over the past decade. This quiz covers crucial risks that managers face, including the implications of innovation and competence destruction, along with the shifting nature of R&D in a globalized environment. Test your knowledge on how these changes influence the management of technology within companies.