Exploring the effectiveness of pursuing competing technologies in parallel projects during predevelopment

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Prior research has studied the effectiveness of parallel projects in the research and development stages. However, it has ignored predevelopment, which R&D intensive firms generally distinguish as a separate stage lodged between research and development. Predevelopment focuses on activities and decisions to select, from a subset of related technologies, the best option for a product application. Parallel projects are often a means of speeding up this process by actively pursuing learning spillovers. This paper develops assumptions about learning potential and then uses a real option model to test the trade-off between the higher costs and benefits of this parallel project approach. We compare outcomes for predevelopment using the same approach under research and development conditions, respectively. The results reveal that, when moving from research to development, the effectiveness of pursuing competing technologies in parallel projects first increases and then decreases, with a maximum positive result in predevelopment. The results also show that learning spillovers can compensate for the higher investment costs. Data from an empirical case support our findings.
Original languageEnglish
JournalInternational Journal of Technology Management
Publication statusAccepted/In press - Jan 2019

Fingerprint

research and development
learning
costs
Costs
firm
Spillover
Development stage
Costs and benefits
Real options
Trade-offs

Keywords

  • competing technologies
  • interproject learning
  • parallel development
  • predevelopment
  • real options

Cite this

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title = "Exploring the effectiveness of pursuing competing technologies in parallel projects during predevelopment",
abstract = "Prior research has studied the effectiveness of parallel projects in the research and development stages. However, it has ignored predevelopment, which R&D intensive firms generally distinguish as a separate stage lodged between research and development. Predevelopment focuses on activities and decisions to select, from a subset of related technologies, the best option for a product application. Parallel projects are often a means of speeding up this process by actively pursuing learning spillovers. This paper develops assumptions about learning potential and then uses a real option model to test the trade-off between the higher costs and benefits of this parallel project approach. We compare outcomes for predevelopment using the same approach under research and development conditions, respectively. The results reveal that, when moving from research to development, the effectiveness of pursuing competing technologies in parallel projects first increases and then decreases, with a maximum positive result in predevelopment. The results also show that learning spillovers can compensate for the higher investment costs. Data from an empirical case support our findings.",
keywords = "competing technologies, interproject learning, parallel development, predevelopment, real options",
author = "{van Bommel}, T. and E.J. Nijssen and R.J. Mahieu",
year = "2019",
month = "1",
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journal = "International Journal of Technology Management",
issn = "0267-5730",
publisher = "Inderscience Enterprises Ltd.",

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AU - van Bommel, T.

AU - Nijssen, E.J.

AU - Mahieu, R.J.

PY - 2019/1

Y1 - 2019/1

N2 - Prior research has studied the effectiveness of parallel projects in the research and development stages. However, it has ignored predevelopment, which R&D intensive firms generally distinguish as a separate stage lodged between research and development. Predevelopment focuses on activities and decisions to select, from a subset of related technologies, the best option for a product application. Parallel projects are often a means of speeding up this process by actively pursuing learning spillovers. This paper develops assumptions about learning potential and then uses a real option model to test the trade-off between the higher costs and benefits of this parallel project approach. We compare outcomes for predevelopment using the same approach under research and development conditions, respectively. The results reveal that, when moving from research to development, the effectiveness of pursuing competing technologies in parallel projects first increases and then decreases, with a maximum positive result in predevelopment. The results also show that learning spillovers can compensate for the higher investment costs. Data from an empirical case support our findings.

AB - Prior research has studied the effectiveness of parallel projects in the research and development stages. However, it has ignored predevelopment, which R&D intensive firms generally distinguish as a separate stage lodged between research and development. Predevelopment focuses on activities and decisions to select, from a subset of related technologies, the best option for a product application. Parallel projects are often a means of speeding up this process by actively pursuing learning spillovers. This paper develops assumptions about learning potential and then uses a real option model to test the trade-off between the higher costs and benefits of this parallel project approach. We compare outcomes for predevelopment using the same approach under research and development conditions, respectively. The results reveal that, when moving from research to development, the effectiveness of pursuing competing technologies in parallel projects first increases and then decreases, with a maximum positive result in predevelopment. The results also show that learning spillovers can compensate for the higher investment costs. Data from an empirical case support our findings.

KW - competing technologies

KW - interproject learning

KW - parallel development

KW - predevelopment

KW - real options

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JO - International Journal of Technology Management

JF - International Journal of Technology Management

SN - 0267-5730

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