The Pattern Of Technology Diversification And Its Influence On Persistent Innovation

As a branch of diversification strategy,technology diversification which is for sure the effective tool of expanding technology competence and knowledge base for companies has been widely noticed by researchers in the past 5 decades.The literature has pointed out that innovators are likely to gain more technology scopes to strength their novelty and spread the product lines thus reducing the risk and enhance their performance for the sake of adjusting themselves in the quickly changing technology market and rapidly developing new economic era.Besides,in the meantime of gaining new technology knowledge,the consistent input of R&D resources from inside and outside increases their ability of R&D and innovation.Overall,the research now focus more on company level and individuals which explore the relation between technology diversification of companies and their innovation performance through the inputs of R&D and patents they applied.And for more deep exploration,researchers find the moderating roles of international diversification,product diversification and technological relatedness between them.However,researches of firms cannot equal to those of industries.So,firstly we will discuss technology diversification from the view of industry.How the technology diversification of industries will affect persistent innovation will be our prime task;Secondly,we will discuss whether the relationship between technology diversification and persistent innovation will be moderated by market structure;Finally,because of the different technology distributions across industries and the differences of internal technology communication and relatedness,there will be different technology patterns in different industries.So we will test the influence of this pattern on persistent innovation.At last,we find that there is strong positive relationship between technology diversification and persistent innovation.Moreover,industry concentration and nationalization degree will negatively moderate this relationship.Then we come out with four different patterns which are strong core technology competence-high technology relatedness,strong core technology competence-low technology relatedness,weak core technology competence-low technology relatedness and low core technology competence-high technology relatedness.And we divide 15 hi-tech industries into these four patterns.At last,we analyze the relation between technology diversification and persistent innovation,the conclusion implies that technology diversification in industry-level positively influences the innovation performance.Thus,this dissertation suggests that different industries should pay attention to different technology diversification patterns to fulfill their consistent innovation performance.The value of this research is that we discuss the relationship between technology diversification and persistent innovation from the view of industry.And test the moderator role of industry structure in it.More importantly,we put forward four technology patterns and give the best technology development pattern.To be concluded,this research provides a good point of view of industry technology development.