Imitation as a strategic option for external acquisition of technology

There is often a clash between the necessity to innovate and the high economic risks involved in the introduction of such novelties. Therefore, management has to consider, if there are other strategies of successful technology management than to innovate. One might be the imitation strategy. This survey analyzes the capabilities a firm must have in order to carry out an imitation strategy successfully. Sixty-six firms were interviewed for the survey. Using a LISREL model it was shown that successful imitators must have the following capabilities in order to succeed in overcoming barriers to market entry built up by the innovator. These are: strengths in the areas of technology, marketing and production, and the existence of suitable information gathering capabilities. Furthermore, imitation projects are successful only if they also succeed in realizing a high degree of similarity between the innovative and imitative product (high imitation de ree) and in impeding the market entry of further imitators. Further development, or an improvement of the innovation (a low imitation degree) does not affect imitation success in a positive way.