Technology-Market Matching in High Technology Small Firms

The commercialisation of a very new technology involves a gradual co-evolution between a developmental technology and emerging markets. The manner in which high technology firms match their technology to market applications has not been described in detail. The firms face critical market application decisions, whilst market demand is difficult to identify and customer desires are not explicitly known. Therefore, this research aims to gain insight into the determinants of market application decisions in high technology small firms. First, this paper reviews literature on strategic decisions and success factors of commercialising new technologies in entrepreneurial firms. Subsequently, the novel and current case of fuel cell technology is examined in an empirical case study of four fuel cell firms. The findings suggest that experience with product and market applications as well as a firm’s supply chain position are determinant for the selection of market applications. Further research may contribute to understanding of firm experience as a source of competitive advantage.