Technology Brokering

Definition

Technology brokering is the process of identifying, acquiring, and transferring technological knowledge and innovations from external sources to an organization in order to enhance its competitive advantage and drive innovation. It involves actively seeking out and leveraging external technological resources to complement and supplement a company's internal research and development capabilities.

5 Must Know Facts For Your Next Test

1. Technology brokering allows organizations to access and leverage external technological knowledge and innovations that may not be available internally, enabling them to enhance their innovation capabilities and competitiveness.
2. Effective technology brokering requires an organization to have strong absorptive capacity, which allows it to identify, assimilate, and apply external technological knowledge.
3. Technology brokering can involve various mechanisms, such as licensing, joint ventures, strategic alliances, and acquisition of technology-based firms or assets.
4. Successful technology brokering often depends on the organization's ability to effectively integrate and manage the acquired external technology with its existing internal capabilities and resources.
5. Technology brokering can be particularly beneficial for organizations operating in dynamic, fast-paced industries where the pace of technological change is rapid and the need for continuous innovation is crucial.

Review Questions

• Explain how technology brokering can enhance an organization's innovation capabilities.
  • Technology brokering allows organizations to access and leverage external technological knowledge and innovations that may not be available internally. By identifying, acquiring, and integrating these external technological resources, companies can complement and supplement their own research and development efforts, leading to the development of new products, services, or processes that can improve their competitive position in the market. This process of tapping into external sources of technology and innovation can be a key driver of an organization's overall innovation capabilities.
• Describe the role of absorptive capacity in successful technology brokering.
  • Absorptive capacity, which refers to an organization's ability to recognize the value of new, external information, assimilate it, and apply it to commercial ends, is critical for effective technology brokering. Organizations with strong absorptive capacity are better equipped to identify and acquire relevant external technological knowledge, understand how it can be integrated with their existing capabilities, and effectively apply it to develop new innovations. Without sufficient absorptive capacity, organizations may struggle to fully leverage the benefits of the external technologies and knowledge they acquire through technology brokering.
• Analyze how the mechanisms used in technology brokering, such as licensing, joint ventures, and acquisitions, can impact an organization's innovation strategy and competitive position.
  • The specific mechanisms employed in technology brokering, such as licensing, joint ventures, strategic alliances, and acquisitions, can have significant implications for an organization's innovation strategy and competitive position. Licensing external technologies can provide quick access to new capabilities but may limit an organization's control and ability to further develop the technology. Joint ventures and strategic alliances allow for shared development and risk, but require effective collaboration and alignment of interests. Acquiring technology-based firms or assets can provide more comprehensive access to external technological knowledge and resources, but may also introduce integration challenges. The choice of technology brokering mechanism should be carefully evaluated based on the organization's specific goals, resources, and the nature of the external technology being acquired, in order to optimize the impact on innovation and competitiveness.

Related terms

Open Innovation: An innovation management model that emphasizes the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation, respectively.

Technology Transfer: The process of transferring scientific findings from one organization (such as a university, research institute, or company) to another for the purpose of further development and commercialization.

Absorptive Capacity: The ability of an organization to recognize the value of new, external information, assimilate it, and apply it to commercial ends, which is critical for a firm's innovative capabilities.