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The effect of evolutions of complex technologies and network of innovators on the development of emerging innovations is investigated. The stability and change of networks punctuated by successive technological changes was examined by propositions.

A theoretical process model of organizational action affecting resource and development resources of a firm is proposed. This model combines policy level perspective with a firm level perspective.

The technology strategy, in terms of mergers and acquisitions, undertaken by Raytheon and Lockheed-Martin proved to be advantageous in terms of enhancing their technical competencies and widening their market and technology accessibility. Through acquisition, Raytheon's technology portfolio grew by 40% while that of Lockheed-Martin grew by 185%. The two companies were also able to penetrate new markets by acquiring firms such as Xyplex and E-Systems.

Two traditional models of global expansion were evaluated in an exploratory effort to explain the globalization patterns of emerging high-technology companies. In-depth field interviews were conducted with 19 Massachusetts-based companies that supply software or peripheral products for desktop computing to explore: their timing and aggressiveness in entering markets outside of North America; their structures and patterns for expansion; and their success. Sampled companies report nondomestic revenues ranging from 6% to 58% of their totals. Statistical analyses of 'globalization success,' defined here as how quickly a company achieves substantial percentage of revenues from nondomestic markets, support an integrated model of globalization that combines a cluster of other influences with elements of Vernon's specific product cycle model and aspects of the more generic internationalization process models. In accordance with Vernon, high-tech products are developed primarily for the home market but are soon transferred overseas, more slowly to 'lagging markets.' In contrast with Vernon, many different selling arrangements are employed, and overseas production does not follow for most high-tech firms. In accordance with the general internationalization theory, when high-tech companies perceive foreign markets as risky they proceed cautiously, often using outside specialists to facilitate market entry and increase their involvement over time as their familiarity increases. But in contrast with this, many high-tech firms, especially the most successful, do not even perceive such riskiness and do not exhibit such caution. Unrelated to either of those two models, and building upon the work of Rugman et al. (1), globalization success is most strongly linked to how aggressively senior management allocates internal resources to developing an overseas business model that approximates the company's U.S. model of selling/distributing. External environmental forces, too, such as the varied adoption rates of the underlying desktop computing platforms themselves as well as regulatory factors, also affect globalization of high-tech products and companies. (Reprinted by permission of the publisher.)

This paper develops five alternative structural `models' for formal efforts aimed at spinning off new companies from universities, government laboratories, and other research and development organizations. In various ways the models combine the roles of the technology originator, the entrepreneur, the R&D organization itself, and the venture investor. The paper also presents the policies and structures of technology commercialization operations from investigations at eight R&D organizations in the United States and the United Kingdom. The data indicate that a R&D organization operating in an environment where venture capital and entrepreneurs are readily available (e.g., MIT and Stanford) can appropriately: (1) exercise a low degree of selectivity in choosing technologies for spin-off creation, and (2) provide a low level of support during the spin-off process. The spin-off process is more difficult in environments where venture capital and entrepreneurs are scarce (e.g., ARCH) and mechanisms for high-selectivity and a high level of support must be in place by the R&D organization to compensate for this scarcity., Key figures involved in spinning off new companies from research and development (R&D) organizations include technology originators, entrepreneurs and venture investors. A study follows five spinoff models from invention through process stages to sale and initial public offering. The studies include spinoffs from national laboratories such as the Argonne National Laboratory/University of Chicago Development Corp., plus Boston University, and Kings College London.

Extensive data from the largest R&D-performing companies in the United States, Western Europe and Japan reveal several key factors that influence technological effectiveness and R&D performance. For example, European firms are less involved with their customers in carrying out product development than are U.S. or Japanese companies. Timeliness of technical results and newness of the company's technology portfolio strongly affect overall R&D performance and, more specifically, new-product revenues. Company sales growth is statistically related to overall R&D managerial capability as reflected in R&D meeting its multiple project-level objectives of schedule, technical performance and budgeted cost. These and other findings on strategic management of technology (many presented in Part I of this article, in the January-February issue of Research Technology Management) arise from a global benchmarking study of the 244 companies that account for approximately 80 percent of the R&D expenditures in Europe, Japan and the United States.