3.4 KiB
| title | chunk | source | category | tags | date_saved | instance |
|---|---|---|---|---|---|---|
| Technology life cycle | 3/3 | https://en.wikipedia.org/wiki/Technology_life_cycle | reference | science, encyclopedia | 2026-05-05T07:12:54.417280+00:00 | kb-cron |
=== In the decline phase === After reaching a point such as D in the above diagram, the earnings from the technology begin to decline rather rapidly. To prolong the life cycle, owners of technology might try to license it out at some point L when it can still be attractive to firms in other markets. This, then, traces the lengthening path, LL'. Further, since the decline is the result of competing rising technologies in this space, licenses may be attracted to the general lower cost of the older technology (than what prevailed during its vital life). Licenses obtained in this phase are 'straight licenses'. They are free of direct control from the owner of the technology (as would otherwise apply, say, in the case of a joint-venture). Further, there may be fewer restrictions placed on the licensee in the employment of the technology. The utility, viability, and thus the cost of straight-licenses depends on the estimated 'balance life' of the technology. For instance, should the key patent on the technology have expired, or would expire in a short while, the residual viability of the technology may be limited, although balance life may be governed by other criteria such as know-how which could have a longer life if properly protected. The license has no way of knowing the stage at which the prime, and competing technologies, are on their TLCs. It would be evident to competing licensor firms, and to the originator, from the growth, saturation or decline of the profitability of their operations. The license may, however, be able to approximate the stage by vigorously negotiating with the licensor and competitors to determine costs and licensing terms. A lower cost, or easier terms, may imply a declining technology. In any case, access to technology in the decline phase is a large risk that the licensee accepts. (In a joint-venture this risk is substantially reduced by licensor sharing it). Sometimes, financial guarantees from the licensor may work to reduce such risk and can be negotiated. There are instances when, even though the technology declines to becoming a technique, it may still contain important knowledge or experience which the licensee firm cannot learn of without help from the originator. This is often the form that technical service and technical assistance contracts take (encountered often in developing country contracts). Alternatively, consulting agencies may fill this role.
== Technology development cycle == According to the Encyclopedia of Earth, "In the simplest formulation, innovation can be thought of as being composed of research, development, demonstration, and deployment." Technology development cycle describes the process of a new technology through the stages of technological maturity:
Research and development Scientific demonstration System deployment Diffusion
== See also == Background, foreground, sideground and postground intellectual property Business cycle Disruptive technology Gartner hype cycle Mass customization Network effects New product development Technological revolution Technological transitions Technology acceptance model Technology adoption life cycle Technology readiness level (TRL) Technology roadmap Toolkits for user innovation Open innovation Frugal innovation
== References ==