AutonomoustechnologiesTraditional view on technologyExternal to the firm,developed by somebody elseSingletechnologyEntersthefirmasacostfunctionCanbeexpressedasaproductionfunctionTechnischeUniversiteitTUEindhoveneUniversity of Technology10/7/2013PAGE10EcononomicsofInnovation2013
Autonomous technologies • Traditional view on technology • External to the firm, developed by somebody else • Single technology • Enters the firm as a cost function • Can be expressed as a production function Econonomics of Innovation 2013 10/7/2013 PAGE 10
Systemic character of technologiesSystemicAutonomousTechnologiesTechnologiesNature oftechnologiesComplex combination ofSingle technologiestechnologiesFirm-levelSingle firmsDeveloped byfirmswhose core activitiesare relatedCompetitive advantagesFirm-internal capabilitiesComplementaryassetse.g.inR&Dand assetsUncertaintyUncertainty aboutHigh uncertainty aboutproduct or serviceviabilityofsystemCoordinationMarketFirm-coordinationExamplesAgricultureBroadband,PharmaceuticalsTechnische UniversiteitTUEindhovenUniversity of Technology10/7/2013PAGE11EcononomicsofInnovation2013
Systemic character of technologies Autonomous Technologies Systemic Technologies Nature of technologies Single technologies Complex combination of technologies Firm-level Single firms Developed by firms whose core activities are related Competitive advantages Firm-internal capabilities and assets Complementary assets e.g. in R&D Uncertainty Uncertainty about product or service High uncertainty about viability of system Coordination Market Firm-coordination Examples Agriculture Broadband, Pharmaceuticals Econonomics of Innovation 2013 10/7/2013 PAGE 11