©ICBTS Copyright by Author(s) | The 2020 International Academic Multidisciplines Research Conference in Switzerland 353
THE COOPERATION AND COMPETITION OF TECHNOLOGICAL DEVELOPMENT: THE CASE
OF TFT-LCD
Hsin-Yu Shih*, Pei-Wen Liao
**
*Department of International Business Studies, National Chi Nan University, Taiwan
E-mail address: hyshih@ncnu.edu.tw
**Department of International Business Studies, National Chi Nan University, Taiwan
E-mail address: s102212519@mail1.ncnu.edu.tw
ABSTRACT
The study aims to find the players of technological cooperation and competition from the perspective of ego
firms. The research applies the method of Network Constraint Index to analyze the network of technological
diffusion. The higher the constraint value of a certain firm is, the more constraint it would stop the linkage from
technological connection. On the other hand, the lower the constraint value of a certain firm is, the less connection
it is with the others, which means more chance to obtain the intermediate benefit. The firm with constraint trait
might be the bridge the connection of the others and control the important resources and advantages among other
firms. By this way, the purpose of this study is to identify the players of technological cooperation and competition
for firms and help them to make a complete portfolio of technology development.
Keywords—Competition, Cooperation, Patent, Constrain, TFT-LCD
1.INTRODUCTION
Patents are the fight weapons behind the business of the industry. It is not only as the core threat arms but also
the last defend walls. Because patents are regarded as the core products on research and development, it is the
competitive battlefield since always until now. Many world-known research institutions, such as International
Institute for Management Development (IMD) and World Economic Forum (WEF), view patents as a key
indicator in evaluating a national research and development (R&D) position. Patent are an important intangible
asset of the firms, it not only regards as the core competiveness but also enable firms to generate revenue by
selling them.
The study focuses on TFT-LCD industry to explore the changes and developments of the technology. From the
end of the 1960’s, the technology of LCD (Liquid Crystal Display) used to be initially applied by U.S. Radio
Corporation of America (RCA). On account of the characteristics for thin and power-save, TFT-LCD becomes the
main applied products on display industry. Once when the Japan firm TOSHIBA employed TFT-LCD on the
Notebook screen, it has spread widely on consuming electronic product like GPS, digital camera, NB, etc. It is to
say that TFT-LCD is on behalf of progress on technology market that is due to the technology of TFT-LCD has
reached the maturity period and could be explained for the developing history. By exploring patents analysis is
the way to overview.
The traditional method only could regard from the bilateral side to overview the relationship and even have no
way to understand the ego side, and the clusters side of the variety within them. As the rapidly change of the
technology, the innovation process becomes much complex, the product life cycle comes to be terminate, and the
demand of the market turns the environment competitive. There is much important to possess the up-to-date, the
correct, and the abundant patent information to make the complete patent portfolio for the companies to fight
against. There are few researches on both patent transaction and patent citation together at the same time. The
research constructs the transaction matrix and citation matrix to discuss the characteristics they act. Under the cost
and capability conditions, how to acquire the advantage by technology transferring is the important issue that
business needs to conquer to. Focus on the case TFT-LCD industry, this study aims to develop a method to identify
a certain company’s cooperation and competition from the ego perspective to help its decision-makers for a better
strategy making.
2. LITERATURE REVIEW
2.1 Technology Market
As the progress of the technology, the fast time the products launch, the short term the product life cycle
changes. For many businesses, the new products and service are much important for the companies especially for
the technology-imploded firms [1]. In order to launch the competitive products, business usually put lots of efforts
on the innovation technology. However, for limitation of the resource, they focus on the development capability