Technology strategy involves plans for achieving technological goals and adapting to environmental changes. At the national level, strategies can be categorized into internalization and externalization approaches, while at the enterprise level, firms may adopt leadership or followership strategies based on their technological objectives. The document also discusses technology development processes, government influence on technology generation, and the S-curve model that represents the evolution and performance characteristics of technology over time.

1. Technology Strategy &
Development
By
Dr. Vijay Kr. Khurana

2. What is technology strategy ?
• According to Oxford English Dictionary --- the
word ‘Strategy’ means:
– A plan designed to achieve a long-term aim
– The planning and directing of military activity in
a war or battle.
• According to Mintzberg and Quinn, a strategy is
the pattern or plan that integrates a nation’s or
organization’s major goals, policies and action
sequences into a chosen whole.

3. What is technology strategy ?
• A strategy serves to allocate a nation’s or
organization’s resources into a unique and viable
posture which is based on its strengths and
weaknesses, and anticipated changes in the
environment.
• Technology Strategy is the way or plan of
attaining technological goals and technological
changes.
• Technology strategies are formulated at the
national level and at the enterprise level.

4. Technology Strategy at National level
• At national level, two types of strategy options are
usually explored i.e internalisation oriented strategy &
externalisation oriented startegy. A nation may adopt
any of the two technology strategy or suitable
combination of both.
Internalization Oriented Strategy
• This strategy aims at seeking technological development
with an objective to become internally self reliant.
• This strategy aims at seeking technology transfer by
TNCs / MNCs via Foreign Direct Investment (FDI).
• The strategy seeks proactive role in attracting TNCs /
MNCs and focusses on ensuring a stable macro-economic
environment & good supportive infrastructure.

5. Technology Strategy at National level
Externalization Oriented Strategy
• This strategy aims at seeking technological development
with an objective to tap external market.
• Under this strategy, there is restricted role for FDI.
This strategy seeks to foster / encourage indigenous
technology development i.e developing domestic
technology capabilities in general or in selected
strategic industries.
• Some examples of this type of strategy are : Minority
joint ventures (with minor share to foreign
collaborator), Technolgical assitance to domestic firms,
Encouraging import of capital Goods

6. Technology Strategy at Enterprise
level
• According to Bentz, Martino & Mintzberg
Technological Strategy at enterprise level means
--- “A formal set of enterprise intentions that
allocates available resources and sets priorties
based on clearly stated technological and
enterprise objectives and a perceived environment
in which the process is to be embedded.

7. Technology Strategy at Enterprise
level
According to Porter- following three factors influence
enterprise’s Technology Strategy :
• Sustainability of technological lead : Technological
leadership can be sustained only if competitors
cannot copy it.
• First mover advantages : Enterprise gets many
advantages like increased reputation, pre-empting
competition, early profits, new sales etc,

8. Technology Strategy at Enterprise
level
• First mover disadvantages – Certain disadvantages
and risks can adversly affect the first mover like
cost of regulatory approvals, cost of educating
buyers, demand uncertainity, low cost imitation by
competitors, risk of technological discontinuities of
existing technology / products / processes

9. Technology Strategy at Enterprise
level
Based on factor analysis, an enterprise may adopt any
of following technology strategies.
• Technology Leadership Strategy – Under this
strategy, a firm seeks to be the first to introduce
technological changes / innovations.
• Technology Followership Strategy – A conscious &
active strategy, by which a firm chooses not to be
first on innovations.

10. What is Technology Development /
Generation ?
• Generation of technology is the process by which
technology is generated / developed by various
entities.
• In communist or socialist countries, the technology
is mainly generated by government owned research
institutions, universities and other bodies with a
very lesser contribution coming from private
sector.
• In capitalist countries, the technology is mainly
developed by private sector and there is some
contribution from government agencies as well.
• In countries with mixed economic system, both
government and private setor play a significant
role in technology generation .

11. Technology Development / Generation

12. Technology Development / Generation
• The government technology policy framework
directly influences technology generation in a
nation.
• Thereafter, technology genaration depends upon
the technology strategy of the organization /
enterprise i.e. whether it wants to become
technology leader or technology follower?

13. Technology Generation
• The technology strategy of the organization sets
the direction for technology development in the
organization and to some extent also influences
technological strataegies of competitors as well.
• At organizational / enterprise level, generation of
technology is both an individual & group activity,
but its management is solely an organizational
responsibilty and activity
• Technology develops through a process of
Creativity, Invention and Innovation.

14. What is S Curve of Technology Evolution
• Although the initial development of new technology
often appears to be a random process, once a
technology comes into existence, its evolution over
time displays a reasonable stable pattern.
• Technology Evolution refers to changes in the
performance characteristics of specific technology
over time
• It is generally perceived that technology evolution
follows an S shape curve.
• S-curve of technological evolution” is widely cited
to determine at what point managers should shift
investments from a mature technology to a new one.
• [ Exceptions: A study done by Sood and Tellis
suggests that many technological evolutions do not
follow S shape curve.]

15. What is S Curve of Technology
Evolution
S curve of technological evolution summarizes four
major stages in the evolution of performance
characteristics:
• 1. Emergence : when the new technology comes into
existence, but shows little improvement in its
performance characteristics
• 2. Rapid Improvement : When performance
characteristics improve at an accelerating pace
• 3. Declining Improvement: When the pace of
improvement declines
• 4. Maturity: When further improvements become
very difficult to achieve

16. What is S Curve of Technology
Evolution?
Performance Characteristics
Stage 1 Stage 2 Stage 3 Stage 4
Time

17. What is S Curve of Technology
Evolution
S curve shape of technological evolution occurs due to
following reasons / effects:
• Learning processes – which, in the first stage,
generates more or less stable design & process and in
the second stage generates rapid improvements
• Technology Limits – Once a technology reaches full
potential, technology limits come into play during later
stages. These technology limits are also known a
technology frontiers –as called by Dosi. In later stages,
radical breakthrough occurs, as a result new technology
emerges which replaces existing technology, This is
known as Technology Progression
• The performance of the newer technology initially is
lower than that of the older technology, but because of
their relative positions on their respective S-curves,
the performance of the newer technology soon
surpasses that of the older.

18. What is S Curve of Technology
Evolution?
Performance Characteristics Technology Progression
Physical limits of technology <Technology
Regime 2
Technology
Regime 1 >
Time

19. Technology Strategy &
Development
By
Dr. Vijay Kr. Khurana