Firms’ Perspective on Technology Relatedness and Adaptation: A Survey on Renewable Energy Firms

Abstract

Abstract-This paper investigates firms' perspective on technology relatedness and adaptation with an intent to understand the dynamics of technology diffusion across industries. The result from a survey on renewable energy firms shows that the surveyed firms are actively monitoring and evaluating the possibility of adapting their existing technologies for new applications. However, they are more interested in improving competitiveness in core applications than exploring opportunities in new applications. This preference is reflected in their higher priority for developing complementary technologies for existing applications than adapting existing technology for new applications. The result implies that core business competency tends to have greater influence than technology relatedness on firms' technology development strategies. Further investigation is needed to identify industry characteristics on firm's perspective on technology adaptation strategy.