Abstract
This chapter examines the role of competition as a driver of technological progress. We take a brief historical look at the arms race during the Cold War between the United States and the Soviet Union. We then discuss several real-world situations of technological competition in duopolies and provide a framework for quantifying this effect using game theory. We also look at technological competition through the lens of network and graph theory. Finally, we conclude by describing the role of industry standards as a way to level the playing field in terms of competition in a particular industry. The reason this topic is important in that it helps clarify the strategic input into technology roadmapping and setting clear targets to be achieved.
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Notes
- 1.
While important, competition may not be the only driver for technological progress. Equally important may be other factors such as the drive for human survival, scientific curiosity, or collaboration in the form of symbiosis and altruism as often observed in nature. It is not easy to clearly separate these drivers, either historically or prospectively.
- 2.
Adding different technologies in this way may lead to nonlinear interaction effects (coupling) between the different technologies. The net effect of these couplings has to be taken into account when creating a validated (by computer models or data coming from R&D projects, see Chap. 11) version of a “vector chart.”
- 3.
The SA-75 was also involved in the famous downing of U2 pilot Gary Powers in 1960 above Soviet territory. This led, among other developments, to investment in so-called “stealth” technology by the United States, which affords aircraft a low level of observability (LO) and virtual invisibility from radar sensors.
- 4.
The extra-large aircraft market (“XL”) for aircraft with more than 500 passengers (B747 and A380) is no longer active and only restricted to finishing up the production of the existing order book. Both aircraft will be or have been out of production by 2022.
- 5.
Boeing recently cancelled the merger with Embraer resulting in ongoing legal proceedings.
- 6.
This does not take into account the more disruptive switch from the internal combustion engine (ICE) to electric vehicles as discussed in Chap. 6.
- 7.
- 8.
The situation of the Boeing B737 MAX which was a response to the Airbus A320neo can be viewed in this light.
- 9.
More on the role of technological diversification will be discussed in Chap. 16 on R&D Project Definition and Portfolio Management.
- 10.
- 11.
- 12.
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de Weck, O.L. (2022). Technology Strategy and Competition. In: Technology Roadmapping and Development . Springer, Cham. https://doi.org/10.1007/978-3-030-88346-1_10
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DOI: https://doi.org/10.1007/978-3-030-88346-1_10
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