Do External Technology Acquisitions Matter for Innovative Efficiency and Productivity?
AbstractTo quickly adapt to technological change and developments, and thus remain competitive, firms increasingly resort to the use of external technology. This paper investigates whether and to what extent the acquisition of external disembodied technology affects the efficiency and productivity in innovation of technology acquiring firms. Using the stochastic frontier analysis combined with a difference-in-difference matching approach and firm-level panel from the German Innovation Survey for the period 1992-2004, we find that manufacturing firms that acquire disembodied technology experience more growth in innovative productivity than non-acquiring firms do. Thus, this study provides evidence on complementarity between internal and external R&D in innovation production, which is attributed by increasing returns to R&D scale and increasing technical efficiency. Moreover, we find that firm size significantly contributes to innovative efficiency and productivity of external technology acquirers.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1035.
Length: 39 p.
Date of creation: 2010
Date of revision:
Technology acquisition; innovative efficiency; innovative productivity; SFA; Difference-in-difference matching;
Other versions of this item:
- Gantumur, Tseveen & Stephan, Andreas, 2010. "Do External Technology Acquisitions Matter For Innovative Efficiency and Productivity?," Working Paper Series in Economics and Institutions of Innovation 222, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-06 (All new papers)
- NEP-CSE-2010-08-06 (Economics of Strategic Management)
- NEP-EFF-2010-08-06 (Efficiency & Productivity)
- NEP-INO-2010-08-06 (Innovation)
- NEP-KNM-2010-08-06 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2010-08-06 (Microeconomics)
- NEP-SBM-2010-08-06 (Small Business Management)
- NEP-TID-2010-08-06 (Technology & Industrial Dynamics)
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