||MAS MTECManaging the Technology-Driven Enterprise – SS2015 1

High‐Tech IndustryChapter 10

01.04.2015Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch.

Tschumi

Source: http://imgkid.com

||MAS MTECManaging the Technology-Driven Enterprise – SS2015 2

1. Introduction

2. Fuel Cells

3. Microprocessors

4. Speed of High-Tech

5. Subsidies

01.04.2015Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch.

Tschumi

High-Tech Industry

||MAS MTECManaging the Technology-Driven Enterprise – SS2015 301.04.2015

Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch. Tschumi

High-Tech Industry Aerospace

Automotive industry

Artificial intelligence (AI)

BiotechnologyComputer engineeringComputer science & IT

Nano-technology

Nuclear physics

Photonics

Robotics

Semiconductor

Tele-communication

Freezing rate doesn’t drop down to zero

Source: Wikipedia

Source: Wikipedia

Source: Wikipeia

||MAS MTECManaging the Technology-Driven Enterprise – SS2015 01.04.2015

Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch. Tschumi

4

GDP expenditure on R&D in %Source: Eurostat , OECD

R&D intensity is the ratio of expenditures by a firm on research and development to the firm's sales

Total R&D expenditure as a % of GDP

< 0,5 %0.5 – 1.01.0 – 2.02.0 – 3.0> 3.0

Source: Eurostat “Research_and_innovation_statistics_at_regional_level”,ec.europa.eu

Regional Innovation Performance

Very low performanceLow performance

Moderate performanceHigh performance

Very high performance

Investment

R & D

||MAS MTECManaging the Technology-Driven Enterprise – SS2015 01.04.2015

Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch. Tschumi

5

1870Otto engine, Petrol powered

1927World speed record:

still steam-powered cars!

1930Great

Depression

2015Looking for oil substitution

Source: Wikipedia

Source: ozebook.com

To much already

invested in dominant

design

Source: cartalk.com

2016 Toyota Mirai FCV Fuel Cell System - YouTube#

||MAS MTECManaging the Technology-Driven Enterprise – SS2015 01.04.2015

Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch. Tschumi

6

Fuel Cell as typical example of a high-tech:

Improves fast

Huge market potential

Investments from government & industry

Needed not only for product itself but also in processes

Better technology prevails (Performance/$)

Close to science & driven by engineering

…but

High production costs

Storage and distribution of high explosive hydrogen

||MAS MTECManaging the Technology-Driven Enterprise – SS2015 701.04.2015

Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch. Tschumi

Development of the Computer industry

• An example how co-opetition can benefit all market players• An example how over time the business model changes

from vertical competition to horizontal competition

• An example for over-engineering

Source http://www.gooogle.com

Source: http://www.computerbild.de

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Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch. Tschumi

Development of the life cycles

• High-tech speed is usually very fast• But it slows done• There is nothing as old as a

processor when the next model is about to be released

• Dominant designs can be outdated really fast

• An example for fast change• An example for over-engineering

Source: http://tablet-news.com

Source: McGrath, M. E. (1995). Product strategy for high-technology companies. New York: Richard Irwin, Inc

||MAS MTECManaging the Technology-Driven Enterprise – SS2015 901.04.2015

Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch. Tschumi

Development of copycats

• An example for a positive externality in the computer industry and one of the arguments for subsidizing – Internet.

• An example for copycat ( IBM compatible PC’s ) And yes it is an ultrabook !

Source: http://vintagecomputer.com

Source: http://www.tec-wi.com.br

• An example for fast follower

Source: http://www.serversupply.com

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Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch. Tschumi

Subsidies:Positive externalities

2015-03-29: ¥1000 = €7.70

Source: http://www.japantimes.co.jp/news

Going even further by 2025:• 100,000 hydrogen passenger vehicles• 100 hydrogen buses• 80 refueling stations

¥ 3m (€ 23k) for buyers of fuel-cell vehicles >80 % of costs of building hydrogen stations

Source: http://gearheads.org

Toyota Mirai FCV Fuel Cell System

Japan’s 2020 strategy for Tokyo:• 32 hydrogen stations• 6000 hydrogen cars on the road

¥ 45.2bn (€ ~348m) for fuel-cell vehicles and hydrogen stations

of alternative fuels

||MAS MTECManaging the Technology-Driven Enterprise – SS2015 1101.04.2015

Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch. Tschumi

Subsidies:International trade

Source: http://www.buyskypro.com• First mover advantage• Funding through military contracts and tax breaks• R&D supported by NASA

• Catch-up race / copycat• Official subsidies by European governments

Strategic R&D policy @ level of nation beggar-thy-neighbor policy

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superior

01.04.2015Group Gamma: D. Dürrenmatt, I. Höhener, M. Knuchel, J. Imhof, Ch.

Tschumi

Subsidies & Politics

new demand

cleanefficient

high valuenew jobs

Bacon’s Linear Model (16th century)

Source: Growth Through Innovation: Managing the Technology-Driven Enterprise (Boutellier, Heinzen; 2014) Source: http://www.iep.utm.edu

Alternative: Penalties

Politics decide which technology

Choice of technology by engineers

High-Tech