IDEAS home Printed from https://ideas.repec.org/p/upf/upfgen/444.html
   My bibliography  Save this paper

External technology sources: Embodied or disembodied technology acquisition

Author

Listed:
  • Bruno Cassiman
  • Reinhilde Veugelers

Abstract

This 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.

Suggested Citation

  • Bruno Cassiman & Reinhilde Veugelers, 2000. "External technology sources: Embodied or disembodied technology acquisition," Economics Working Papers 444, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:444
    as

    Download full text from publisher

    File URL: https://econ-papers.upf.edu/papers/444.pdf
    File Function: Whole Paper
    Download Restriction: no

    References listed on IDEAS

    as
    1. Veugelers, Reinhilde & Cassiman, Bruno, 1999. "Make and buy in innovation strategies: evidence from Belgian manufacturing firms," Research Policy, Elsevier, vol. 28(1), pages 63-80, January.
    2. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August.
    3. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters,in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
    4. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
    5. Michael L. Katz & Carl Shapiro, 1986. "How to License Intangible Property," The Quarterly Journal of Economics, Oxford University Press, vol. 101(3), pages 567-589.
    6. Veugelers, Reinhilde, 1997. "Internal R & D expenditures and external technology sourcing," Research Policy, Elsevier, vol. 26(3), pages 303-315, October.
    7. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    8. Arora, Ashish & Gambardella, Alfonso, 1994. "Evaluating technological information and utilizing it : Scientific knowledge, technological capability, and external linkages in biotechnology," Journal of Economic Behavior & Organization, Elsevier, vol. 24(1), pages 91-114, June.
    9. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-121, January.
    10. De Bondt, Raymond & Slaets, Patrick & Cassiman, Bruno, 1992. "The degree of spillovers and the number of rivals for maximum effective R &D," International Journal of Industrial Organization, Elsevier, vol. 10(1), pages 35-54, March.
    11. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-379, June.
    12. Granstrand, Ove & Sjolander, Soren, 1990. "The acquisition of technology and small firms by large firms," Journal of Economic Behavior & Organization, Elsevier, vol. 13(3), pages 367-386, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gombau, Verònica & Segarra Blasco, Agustí, 2011. "The Innovation and Imitation Dichotomy in Spanish firms: do absorptive capacity and the technological frontier matter?," Working Papers 2072/179666, Universitat Rovira i Virgili, Department of Economics.
    2. repec:eee:tefoso:v:120:y:2017:i:c:p:232-239 is not listed on IDEAS
    3. Arbussa, Anna & Coenders, Germa, 2007. "Innovation activities, use of appropriation instruments and absorptive capacity: Evidence from Spanish firms," Research Policy, Elsevier, vol. 36(10), pages 1545-1558, December.
    4. Iain M. Cockburn & Megan J. MacGarvie & Elisabeth Müller, 2010. "Patent thickets, licensing and innovative performance," Industrial and Corporate Change, Oxford University Press, vol. 19(3), pages 899-925, June.
    5. Silvia Vicente-Oliva & Ángel Martínez-Sánchez & Luis Berges-Muro, 2016. "Enhancing The Outcomes In R&D Collaborative Projects: An Empirical Analysis Of The Middle Ebro Valley In Spain," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-34, October.
    6. Arbussà, Anna & Coenders, Germà, 2005. "Innovation strategies in the presence of technology markets: evidence from Spanish innovative firms," Working Papers of the Department of Economics, University of Girona 15, Department of Economics, University of Girona.
    7. Alvarez, Roberto & Crespi, Gustavo & Ramos, Joseph, 2002. "The Impact of Licenses on a "Late Starter" LDC: Chile in the 1990s," World Development, Elsevier, vol. 30(8), pages 1445-1460, August.
    8. Gombau, Verònica & Segarra Blasco, Agustí, 2011. "Innovation and absorptive capacity: What is the role of technological frontier?," Working Papers 2072/179622, Universitat Rovira i Virgili, Department of Economics.
    9. Versaevel, Bruno & de Villemeur, Étienne, 2003. "Conflict and Cooperation on R&D Markets," IDEI Working Papers 191, Institut d'Économie Industrielle (IDEI), Toulouse.
    10. repec:wsi:ijitmx:v:11:y:2014:i:06:n:s0219877014500461 is not listed on IDEAS
    11. Mercedes Teruel & Agustí Segarra, 2011. "Productivity and R&D sources in manufacturing and service firms in Catalonia: a regional approach," ERSA conference papers ersa11p1860, European Regional Science Association.
    12. repec:wsi:ijitmx:v:11:y:2014:i:03:n:s0219877014500151 is not listed on IDEAS
    13. Beneito, Pilar, 2003. "Choosing among alternative technological strategies: an empirical analysis of formal sources of innovation," Research Policy, Elsevier, vol. 32(4), pages 693-713, April.

    More about this item

    Keywords

    Technology acquisition; innovation; appropriability; absorptive capacity;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:444. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://www.econ.upf.edu/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.