ABSTRACT

A firm's technological environment can be described in several dimensions. The overall market structure in which the firm operates influences its innovation strategy, which in turn influences the methods used for acquiring/developing/modifying technology. For example, in mature markets where product competition is primarily in terms of price, a firm's technology response may emphasize process-related innovations aimed at reducing operating costs. In emerging markets, product development (improved quality or design) may be the appropriate strategy [207].50