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| title | chunk | source | category | tags | date_saved | instance |
|---|---|---|---|---|---|---|
| Technology life cycle | 1/3 | https://en.wikipedia.org/wiki/Technology_life_cycle | reference | science, encyclopedia | 2026-05-05T07:12:54.417280+00:00 | kb-cron |
The technology life cycle (TLC) describes the commercial gain of a product through the expense of research and development phase, and the financial return during its "vital life". Some technologies, such as steel, paper or cement manufacturing, have a long lifespan (with minor variations in technology incorporated with time) while in other cases, such as electronic or pharmaceutical products, the lifespan may be quite short. The TLC associated with a product or technological service is different from product life-cycle (PLC) dealt with in product life-cycle management. The latter is concerned with the life of a product in the marketplace with respect to timing of introduction, marketing measures, and business costs. The technology underlying the product (for example, that of a uniquely flavoured tea) may be quite marginal but the process of creating and managing its life as a branded product will be very different. The technology life cycle is concerned with the time and cost of developing the technology, the timeline of recovering cost, and modes of making the technology yield a profit proportionate to the costs and risks involved. The TLC may, further, be protected during its cycle with patents and trademarks seeking to lengthen the cycle and to maximize the profit from it. The product of the technology may be a commodity such as polyethylene plastic or a sophisticated product like the integrated circuits used in a smartphone. The development of a competitive product or process can have a major effect on the lifespan of the technology, making it longer. Equally, the loss of intellectual property rights through litigation or loss of its secret elements (if any) through leakages also work to reduce a technology's lifespan. Thus, it is apparent that the management of the TLC is an important aspect of technology development. Most new technologies follow a similar technology maturity life cycle describing the technological maturity of a product. This is not similar to a product life cycle, but applies to an entire technology, or a generation of a technology. Technology adoption is the most common phenomenon driving the evolution of industries along the industry life cycle. After expanding new uses of resources they end with exhausting the efficiency of those processes, producing gains that are first easier and larger over time then exhaustingly more difficult, as the technology matures.
== Four phases == The Soviet economist Nikolai Kondratiev was the first to observe technology life cycle in his book The Major Economic Cycles (1925). Today, these cycles are called Kondratiev wave, the predecessor of TLC. TLC is composed of four phases:
The research and development (R&D) phase (sometimes called the "bleeding edge") when incomes from inputs are negative and where the prospects of failure are high The ascent phase when out-of-pocket costs have been recovered and the technology begins to gather strength by going beyond some Point A on the TLC (sometimes called the "leading edge") The maturity phase when gain is high and stable, the region, going into saturation, marked by M, and The decline (or decay phase), after a Point D, of reducing fortunes and utility of the technology.
=== S-curve === The shape of the technology life cycle is often referred to as S-curve.
== Technology perception dynamics == There is usually technology hype at the introduction of any new technology, but only after some time has passed can it be judged as mere hype or justified true acclaim. Because of the logistic curve nature of technology adoption, it is difficult to see in the early stages whether the hype is excessive.
Similarly, in the later stages, the opposite mistakes can be made relating to the possibilities of technology maturity and market saturation. The technology adoption life cycle typically occurs in an S curve, as modelled in diffusion of innovations theory. This is because customers respond to new products in different ways. Diffusion of innovations theory, pioneered by Everett Rogers, posits that people have different levels of readiness for adopting new innovations and that the characteristics of a product affect overall adoption. Rogers classified individuals into five groups: innovators, early adopters, early majority, late majority, and laggards. In terms of the S curve, innovators occupy 2.5%, early adopters 13.5%, early majority 34%, late majority 34%, and laggards 16%. The four stages of technology life cycle are as follows:
Innovation stage: This stage represents the birth of a new product, material of process resulting from R&D activities. In R&D laboratories, new ideas are generated depending on gaining needs and knowledge factors. Depending on the resource allocation and also the change element, the time taken in the innovation stage as well as in the subsequent stages varies widely. Syndication stage: This stage represents the demonstration and commercialisation of a new technology, such as, product, material or process with potential for immediate utilisation. Many innovations are put on hold in R&D laboratories. Only a very small percentage of these are commercialised. Commercialisation of research outcomes depends on technical as well non-technical, mostly economic factors. Diffusion stage: This represents the market penetration of a new technology through acceptance of the innovation, by potential users of the technology. But supply and demand side factors jointly influence the rate of diffusion. Substitution stage: This last stage represents the decline in the use and eventual extension of a technology, due to replacement by another technology. Many technical and non-technical factors influence the rate of substitution. The time taken in the substitution stage depends on the market dynamics.
== Licensing options == Large corporations develop technology for their own benefit and not with the objective of licensing. The tendency to license out technology only appears when there is a threat to the life of the TLC (business gain) as discussed later.