Learning objective

After reading the component you will become familiar not only with the terms "technology" and "technological capability", but also you will learn about the importance of the technological capability and measurement tool - Technological Capability assessment. It's very important to assess the strengths and weakness of the technological capability in both small firms and large international joint ventures. The simple questionnaire will allow you to define the overall capability level, strengths and weaknesses in the firm. You will also be introduced to a more complex measurement tool - Interview tool. It will take approx 40 minutes to read the module and at least 60 minutes for practice to evaluate technological capability in your firm.


Innovation in firms depends on four major elements: resources, infrastructure, culture and process. All four are equally important. Each of these elements interact with the others to form an effective and efficient means for pursuing innovation. Innovation cannot take place if any of these four elements are missing. Resources require a supporting infrastructure and a supporting infrastructure requires resources. A supporting business culture and an effective and efficient process provide organizations with a means for expanding innovation throughout the company.

A firm's resources include more than people and money. They include intellectual property, access to information, technological capability, time, customers, suppliers, financial reserves, etc.

For many firms technology is a very important resource. Technological innovation drives most companies ahead and makes them competitive and powerful.

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