According to prior research, technological capability includes the use of advanced technology,
valuable technology sources, patents and copyright (Roure & Maidique, 1986;
Siegel et al., 1993; Zahra, 1996; Lee et al., 2001). Following prior research, this study
uses five questions in the questionnaire to measure the technological capability variable.
These questions on a seven-point Likert scale, focus on the degree of importance of
the establishment and utilization of technology in product development: (1) We have a
large number of financial investments in R&D and product development; (2) We have
high-profile technological background personnel in our founding team; (3) We have
our own product or process patents/copyrights; (4) In the firm, founding entrepreneurs
encourage innovative ideas and their implementation; (5) Internal research and
development is greatly emphasized. The five items load on to a single factor, with high
loadings and Eigen values exceeding 1.0. The cumulative variance explained is 70%.