P. Hutcheson et al., SOURCES OF TECHNICAL INNOVATION IN THE NETWORK OF COMPANIES PROVIDINGCHEMICAL PROCESS PLANT AND EQUIPMENT, Research policy, 25(1), 1996, pp. 25-41
The purpose of this paper is to explore issues concerning technologica
l innovation in the network of firms linked to the chemical industry,
with particular reference to the process plant contracting industry. W
hile technological and economic maturity inhibit the research and deve
lopment activities of plant contractors, little evidence was found of
contractors adopting novel strategies to capture special advantage fro
m technology developed by equipment manufacturing firms. It is suggest
ed that the changing economic and technological environment is creatin
g a climate where new or closer contractor-equipment manufacturer rela
tionships should receive greater attention. Appropriate alliances betw
een contractors and equipment manufacturers can not only help to reduc
e plant design, procurement and erection costs, but also offer a means
to counter the competitive threat from more specialist firms; in part
icular the large equipment manufacturers that possess their own projec
t contracting skills. Furthermore, collaboration in niche and 'technol
ogy fusion' type innovation offers a means of generating scope for tec
hnological competitive advantage, whilst sharing cost and risk. Whilst
contractor-equipment manufacturer alliances are one option the nature
of the market demands operating company involvement to facilitate com
mercialisation.