This paper reexamines the limits of the firm in Research and Development (R&D). Using evidence drawn from industrial laboratories we study the causes and effects of R&D sourcing. We begin with the causes of sourcing, finding that Research Joint Ventures (RJVs), the option to purchase and acquire, and research with federal government contribute to sourced R&D. We then consider the effects of sourcing, RJVs, and the firm's internal research on innovation, as defined by patents and new products. Our results are that sourcing has little effect on innovation, but that RJVs and internal research increase innovation. This suggests specialization: cost saving is the primary motivation for sourcing, while innovation is the primary motivation for RJVs and internal research. Therefore, shared R&D comes in several varieties: R&D sourcing is not concerned with innovation, but consistent with their purpose, RJVs are instrumental in jointly commercializing the research of different firms.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
10474.
Length: Date of creation: May 2004 Date of revision: Handle: RePEc:nbr:nberwo:10474
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Find related papers by JEL classification: O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000.
"Research partnerships1,"
Research Policy,
Elsevier, vol. 29(4-5), pages 567-586, April.
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