Technology development and strategy : an exploration of automative fuel cell technology

Abstract

Development of technology is related to several considerations and is not reserved for R&D facilities, because corporate boardrooms and governmental institutions are also involved in technology development. The field of strategy has been somewhat neglected in the literature about technological development, but is considered a cornerstone in this dissertation. Automotive fuel cell technology and its development towards market introduction is the focus of this paper. Fuel cell vehicles face competition from an established technology, the internal combustion engine, which can be considered to be in a lock-in situation. A lock-in is different than competing standards, as differences between technologies goes deeper. Established technologies often evolve and adapt to society for decades, and gain cumulative advantages and become ìlocked-inî. A set of necessary and enabling conditions to escape the lock-in is presented, to show how technological change can be promoted. To create a technological nexus consistent of companies, institutions, R&D facilities which gives the technology strength is chosen as a strategy to overcome the lock-in. The use of strategic technology alliances to create the technological nexus is considered, and how alliances can be used to gain power and influence within the nexus is also an important question in this paper. The discussion on the use of alliances has its main focus on the alliance between Ballard Power Systems, DaimlerChrysler, Ford and their three joint ventures. The General Motors and Toyota cooperation and the PSA Peugeot Citroen alliance are also outlined, to illustrate the different approaches taken by different companies. The notion arenas of development is used as a theoretical framework along with strategy to cast light on technological succession, this combination was chosen because AoD have the strength to enhance the field of strategy regarding development of new technology. The strategy of creating a nexus seems useful for technological development in overcoming the obstacles related to the lock-in on the internal combustion engine. The strategy of creating a nexus did not contradict the strategy of gaining power in the nexus. On the contrary, a strategy of creating a technological nexus was compatible with gaining power inside the nexus in the approach taken by the Ballard Power Systems, DaimlerChrysler and Ford alliance.