The Uniqueness and Challenges of Technology Based Businesses

A Technology Based Business (TBB) is defined as a commercial entity that utilizes intellectual assets (e.g. patents, know-how, trade secrets, etc.) as the core asset of its business pursuit and from which its profits are derived. A TBB may be a small start-up company with only its R&D resources built around its patent assets without prior commercial know-how or manufacturing facilities; or a TBB may be an entity with considerable manufacturing and market channel assets but which relies on its technology position as the principle market differentiator for its commercial success. In all cases, the TBB is considered by both customers and competitors to have established itself in its market through leveraging its technology assets.

Technology-Based Businesses are a growing contributor to the profitability of the Chemical Processing Industries (CPI) as well as the primary basis for the emergence of small entrepreneurial enterprises that drive the dynamic growth of our economy. However, the unique characteristics of such enterprises are not widely recognized in strategy development, asset management, human capital deployment and growth planning. When faced with the overall responsibility for guiding such entities, it is imperative that the special nature of TBB enterprises be addressed in order to preserve their vitality and their long-term impact on the CPI. This presentation examines the special strategies that are critical for such businesses and examines the factors that are important in their success and failure.