Benchmarking the Strategic Management of Technology—I

Abstract

OVERVIEW:Extensive data collected from the largest R&D-performing companies in the United States, Western Europe and Japan reveal that top management linkages and resource leverages are the keys to effective technology strategy. In terms of linkage, Japanese chief executive officers are more heavily involved in integrating technology with overall corporate strategy. Chief technology officers of Japanese companies have stronger board-level participation and greater influence on overall company strategy. U.S. firms are rapidly decentralizing control of R&D activities to their business units, while Japanese companies are moving in the opposite direction. In search of resource leverage, companies worldwide are experiencing major shifts to acquiring technology from outside sources, relying increasingly on universities for research and on joint ventures and alliances for development. These and other findings on strategic management of technology arise from a global benchmarking study of the 244 companies that account for approximately 80 percent of the R&D expenditures in Europe, Japan and the United States.

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