TECHNOLOGY DIVERSIFICATION IN MUL-TECH CORPORATIONS

This paper explores the nature of technology diversification at the pr oduct and corporate levels and shows its strong impact upon growth of R&D expenditures and growth of corporate sales. The emergence of ''mul -tech'' corporations, that is, corporations operating in many technolo gies, is demonstrated and the hypothesis that technology diversificati on creates a potential for growth is tested. However, in order to real ize multech-based growth it is of vital importance to gear technology management toward reaping both economies of scale and of scope through , among other things, communication and coordination, external technol ogy sourcing and internal technology transfer, and cross-fertilization .