External technology sources: Embodied or disembodied technology acquisition
AbstractThis paper analyzes the choice between different innovation activities of a firm. In particular, we study the technology acquisition decision of the firm, i.e. its technology BUY decision as part of the firm's innovation strategy. We take a closer look at the different types of external technology acquisition where we distinguish two broad types of technology buy decisions. On the one hand, the firm can acquire new technology which is embodied in an asset that is acquired such as new personnel or (parts of) other firms or equipment. On the other hand, the firm can obtain new technology disembodied through a licensing agreement or by outsourcing the technology development from an R&D contractor or consulting agency. Through a series of Probit regressions, we discuss variables that might affect external technology acquisition choices of the firm and pay special attention to the firm's abilities to scan the market for technology and to absorb the technology acquired. Furthermore, we analyze the effect of different appropriation regimes on the decision of the firm to source technology.
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Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 444.
Date of creation: Jan 2000
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Technology acquisition; innovation; appropriability; absorptive capacity;
Other versions of this item:
- Cassiman, Bruno & Veugelers, Reinhilde, 2000. "External technology sources: embodied or disembodied technology acquisition," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/102903, Katholieke Universiteit Leuven.
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-04-17 (All new papers)
- NEP-DCM-2000-04-17 (Discrete Choice Models)
- NEP-DEV-2000-04-17 (Development)
- NEP-TID-2000-04-17 (Technology & Industrial Dynamics)
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