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What Is Technology? Read chapter Read first chapter

2022 | OriginalPaper | Chapter

10. Technology Strategy and Competition

Author : Olivier L. de Weck

Published in: Technology Roadmapping and Development

Publisher: Springer International Publishing

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Abstract

This chapter examines the role of competition as a driver of technological progress. We take a brief historical look at the arms race during the Cold War between the United States and the Soviet Union. We then discuss several real-world situations of technological competition in duopolies and provide a framework for quantifying this effect using game theory. We also look at technological competition through the lens of network and graph theory. Finally, we conclude by describing the role of industry standards as a way to level the playing field in terms of competition in a particular industry. The reason this topic is important in that it helps clarify the strategic input into technology roadmapping and setting clear targets to be achieved.

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previous chapter Case 2: The Aircraft
next chapter Systems Modeling and Technology Sensitivity Analysis
Footnotes
1
While important, competition may not be the only driver for technological progress. Equally important may be other factors such as the drive for human survival, scientific curiosity, or collaboration in the form of symbiosis and altruism as often observed in nature. It is not easy to clearly separate these drivers, either historically or prospectively.
 
2
Adding different technologies in this way may lead to nonlinear interaction effects (coupling) between the different technologies. The net effect of these couplings has to be taken into account when creating a validated (by computer models or data coming from R&D projects, see Chap. 11) version of a “vector chart.”
 
3
The SA-75 was also involved in the famous downing of U2 pilot Gary Powers in 1960 above Soviet territory. This led, among other developments, to investment in so-called “stealth” technology by the United States, which affords aircraft a low level of observability (LO) and virtual invisibility from radar sensors.
 
4
The extra-large aircraft market (“XL”) for aircraft with more than 500 passengers (B747 and A380) is no longer active and only restricted to finishing up the production of the existing order book. Both aircraft will be or have been out of production by 2022.
 
5
Boeing recently cancelled the merger with Embraer resulting in ongoing legal proceedings.
 
6
This does not take into account the more disruptive switch from the internal combustion engine (ICE) to electric vehicles as discussed in Chap. 6.
 
8
The situation of the Boeing B737 MAX which was a response to the Airbus A320neo can be viewed in this light.
 
9
More on the role of technological diversification will be discussed in Chap. 16 on R&D Project Definition and Portfolio Management.
 
Literature
Christensen, Clayton M., “The Innovator’s Dilemma - When New Technologies Cause Great Firms to Fail”, Harvard Business Review Press, 1997, ISBN: 978-1-63369-178-0
Foster, Richard, “The Attackers Advantage”, Summit Books, 1986
Hepher T., “Airbus vs. Boeing Market Analysis”, Reuters, 2011
Nash, J., Non-cooperative games. Annals of mathematics, pp.286–295, 1951
Smirnova, Ksenia, Alessandro Golkar, and Rob Vingerhoeds. "A game-theoretic framework for concurrent technology roadmap planning using best-response techniques." In 2018 Annual IEEE International Systems Conference (SysCon), pp. 1–7. IEEE, 2018a.
Smirnova, Ksenia, Alessandro Golkar, and Rob Vingerhoeds. "Competition-driven figures of merit in technology roadmap planning." In 2018 IEEE International Systems Engineering Symposium (ISSE), pp. 1–6. IEEE, 2018b.
Yuskevich, Ilya, Rob Vingerhoeds, and Alessandro Golkar. "Two-dimensional Pareto frontier forecasting for technology planning and roadmapping." In 2018 Annual IEEE International Systems Conference (SysCon), pp. 1–7. IEEE, 2018.
Sabri, Nissia, “Networks of Breakthrough Technologies and their Use in Strategic Games for Competitive Advantage”, System Design and Management (SDM) Thesis, co-advised by Prof. Olivier de Weck with Prof. Alessandro Bonatti, June 2016
Yates, JoAnne, and Craig N. Murphy. Engineering Rules: Global Standard Setting since 1880. JHU Press, 2019.CrossRef
Metadata
Title
Technology Strategy and Competition
Author
Olivier L. de Weck
Copyright Year
2022
Book
Technology Roadmapping and Development

Print ISBN: 978-3-030-88345-4

Electronic ISBN: 978-3-030-88346-1

Copyright Year: 2022

DOI
https://doi.org/10.1007/978-3-030-88346-1_10