Technology diversification in "MUL-TECH" corporations

Abstract

This paper explores the nature of technology diversification at the product and corporate levels and shows its strong impact upon growth of R&D expenditures and growth of corporate sales. The emergence of "mul-tech" corporations, that is, corporations operating in many technologies, is demonstrated and the hypothesis that technology diversification creates a potential for growth is tested. However, in order to realize mul-tech-based growth it is of vital importance to gear technology management toward reaping both economies of scale and of scope through, among other things, communication and coordination, external technology sourcing and internal technology transfer, and cross-fertilization.>

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