Final answer:
There are multiple ways for companies to acquire and develop technology applications, including Research and Development (R&D), leveraging existing technologies through customization or license acquisition, and making strategic choices regarding the adoption of production technologies.
Step-by-step explanation:
Options for Acquiring and Developing Technology Applications
Companies have several options for acquiring and developing technology applications to maintain a competitive edge and improve productivity. One option is to undertake Research and Development (R&D), which enables firms to innovate and pioneer new technologies. This path is often associated with high costs and unpredictable outcomes, but can result in significant competitive advantages and may lead to breakthrough products or services. For instance, the University of Minnesota dedicated considerable R&D efforts to create a new apple variety that took decades to commercialize.
An alternative route is leveraging existing technologies, possibly integrating and adapting them to the firm's specific needs. This might include purchasing off-the-shelf software solutions or machinery that can be customized. Another approach is through technology transfer, acquiring licenses or patents of existing technologies, thus bypassing the initial development stages. This method can be quicker, but is dependent on the availability of suitable technologies.
Finally, firms can decide on technology adoption, which often involves looking at choice of production technology. This could mean deciding between labor-intensive methods or investing in capital-intensive methods, such as automation with robots, computerized systems, or advanced machinery. Such decisions are crucial for firms to remain cost-effective and competitive.