Firm I is convinced that a certain class of technologies holds real economic potential. However, it does not know, for sure, which particular version of this technology is going to dominate the market. There are eight competing versions of this technology currently, but ultimately, only one will dominate the market. Should Firm I invest in all eight of these technologies itself? Should it invest in just one of these technologies? Should it partner with other firms that are investing in these different technologies?

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Business

Aldo Gates

12 July, 00:44

Firm I is convinced that a certain class of technologies holds real economic potential. However, it does not know, for sure, which particular version of this technology is going to dominate the market. There are eight competing versions of this technology currently, but ultimately, only one will dominate the market. Should Firm I invest in all eight of these technologies itself? Should it invest in just one of these technologies? Should it partner with other firms that are investing in these different technologies?

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Jamie Barber · Answer 1

Partner with technology investing firms

Explanation:

Disruptive technologies are capable of completely changing the configuration of a market, so that in the face of a perception of technological change, companies must take technological adherence measures, otherwise their own existence may be at risk. Given the uncertainty about which technology will be right, an appropriate strategy would be to partner technology transfer with firms that are investing in these technologies.