A Tale of Two Literatures: Transaction Cost and Property Rights in Innovation Outsourcing
AbstractThis paper investigates the relative importance of property rights (PR) and transactions cost (TC) factors in driving the decision of firms to outsource innovation. The TC literature explains a small part of outsourcing decisions (cost saving motives) while the PR literature deals with revenue maximisation. Using data for over 8,000 firms from the UK Community Innovation Survey, we find that PR variables dominate over TC variables. Our results suggest that the decision to outsource innovation is mostly driven by the ability of firms to control information leakages, less so by cost motives.
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Bibliographic InfoPaper provided by Industrial Economics Division in its series Occasional Papers with number 17.
Date of creation: 04 2006
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transaction cost; property rights; innovation;
Other versions of this item:
- Gooroochurn, Nishaal & Hanley, Aoife, 2007. "A tale of two literatures: Transaction costs and property rights in innovation outsourcing," Research Policy, Elsevier, vol. 36(10), pages 1483-1495, December.
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-29 (All new papers)
- NEP-BEC-2006-04-29 (Business Economics)
- NEP-COM-2006-04-29 (Industrial Competition)
- NEP-CSE-2006-04-29 (Economics of Strategic Management)
- NEP-ENT-2006-04-29 (Entrepreneurship)
- NEP-INO-2006-04-29 (Innovation)
- NEP-MIC-2006-04-29 (Microeconomics)
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