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A virtuous cycle between effective utilization of external resources and functionality development can be constructed. Given that the timely emergence of new functionality in an efficient way is crucial to a firm's competitive strategy in an era of mega‐competition, construction of such a virtuous cycle is a key element with regard to a firm's technopreneurial strategy. The purpose of this paper is to identify a trigger for such a virtuous cycle.

Empirical comparative analysis taking copying machines development trajectories in Canon and Ricoh and the patent data analysis were conducted.

Cumulative learning from preceding relevant technology development is found to stimulate intra‐technology spillover. Timely intra‐technology spillover from preceding innovation plays a triggering role.

Attempting a broad and comprehensive learning exercise should be strongly encouraged for the effective utilization of external resources for innovation. Fruitful effects of learning should be pursued to the hybrid management of technology fusing indigenous strength and the effects of the comprehensive learning.

Aiming at identifying the trigger emerging a virtuous cycle between effective utilization of external resources and functionality development, core technologies instilled in the copying machines just short of the emergence of functionality development were investigated. In order to anticipate thorough capturing of all dimensions of color technologies utilized for the emergence of new functionality development through indigenous development as well as utilization of externally developed technologies, F‐term retrieval of patent registration data was attempted.

Purpose: Sustainable functionality development (FD) is decisive to firm's profitability in their new innovation in a competitive market. While functionality instills attractive values in innovative goods leading to a dramatic increase in profit through increasing demand and higher prices, it obsolesces immediately in a competitive market. Therefore, how to maintain sustainable FD trajectory is decisive to firm survival strategy within the context of mega‐competition in a globalizing economy. Notwithstanding an increasing significance of this subject, dynamism enabling a sustainable FD trajectory still remains inside a black box. The purpose of this paper, on the basis of an empirical comparative analysis of the diffusion trajectories for copying machines developed by Canon and Ricoh, is to attempt to elucidate this dynamism. Design/methodology/approach: This paper employed a bi‐logistic growth model utilizing patent data for copying machine technologies. Findings: It was found that early undertaking of 2nd generational copying machinery initiated by Canon played a more decisive role in terms of its higher level of sustainable FD than with its competitor. Originality/value: This paper provides significant insight to firm's management of technology strategy in a competitive market.