In order to reap competitive advantage from innovation, a firms technology activities should square with its technology strategy - but how do technology strategies relate to activities and financial performance in relevant business areas? This paper investigates this question by means of a comparison between two leading firms in the electrical engineering industry: ABB and General Electric. We show that substantial performance differences between these companies in the power generation field are related to differences in their espoused technology strategies (as indicated by statements in annual reports) and technology activities (as indicated by patenting) and the degree of alignment between these.
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Bergek et al. (2009) studied this question.
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