The link between r&d intensity and competitive positioning under different technological environments

Document Type

Article

Date of Original Version

1-1-1994

Abstract

The decision as to the magnitude of R&D spending is crucial to business units in a rapidly changing technological environment. Current research recognizes the strategic nature of such choices and suggests that managers have to understand their technological environment before they gain a competitive advantage. This paper presents a contingency model in an exploratory attempt to determine R&D intensity based on competitive strategy, product lifecycle and the perceived technological environment of the business unit. Using the Profit Impact of Market Strategy (PIMS) Data Base, a sample of business units are cross-classified into stable and turbulent technological environments and by the stage of the product lifecycle. Analysis of variance is applied in an attempt to determine the response pattern of the level of R&D intensity for business units following different competitive strategies. The results indicate that R&D intensity is dependent upon the stage of the product lifecycle, the technological environment and the competitive strategy of the business unit. © Taylor & Francis Group, LLC.

Publication Title, e.g., Journal

Journal of Strategic Marketing

Volume

2

Issue

4

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