Measurement of Technological Ability of Technology-orientel Firms by Techno-potential concept

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In this research the meaning and limitations of the concept of techno-potential in a technology-based firm is investigated. Techno-potential, depreciated stock of R&D expenditure invested internally and/or externally to the firm, is proposed as one of indices of measuring potential technological ability.Our concern is primarily with the identification of technological potential capability in a technology-based firm. Since a variety of factors of the firm are in principle ultimately related directly or indirectly to its final performance, we find it difficult to differentiate technological contribution (factor) to it exactly from other contributions (factors). A conventional way of doing this is to adopt the concept of TFP (Total Factor Productivity).However, as an index of the potential technological capability of the firm TFP has several disadvantages Techno-potential is proposed to overcome these disadvantages of TFP.Since techno-potential is a kind of stock concept, we must notice t … More wo characteristics ; time lag and depreciation. That is, a certain time, (i.e., a waiting period) is necessary for the R&D flow to be accumulated as the stock and to bear fruit. Furthermore, it necessarily loses novelty and value as time passes.Techno-potential, on one hand, reflects aspects of production such as labor and capital when it contributes to the production of commercially-oriented output. On the other, it also serves to produce non commercially-oriented output such as research papers, reports and know-how. However, it is true that techno-potential only measures the input side of monetary investment aimed at technological improvement. In reality more monetary investment in R&D activities does not necessarily lead to a higher innovation probability. In order to identify the potential technological capability of the firm in a more 'accurate' way we introduce anoter concept, a reservoir of management potential, to link techno-potential with 'real' potential technological capability. The reservoir is a supporting and connecting platform for each management potential. We claim that this reservoir of management potential is, namely, organizational intelligence.The reservoir is essentially related with 'humanware' including human network formation and knowledge-sharing information systems. We suggest a role of the so called "soft systems approach" in activating techno-potential. Less