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Determinants of Demand for Technology in Relationships with Complementary Assets in Japanese Firms

Masayo Kani and Kazuyuki Motohashi ()

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: There is a growing trend of open innovation in the new product development process, while technology insourcing has not been investigated very well as compared to technology outsourcing in empirical literature. In this paper, we examine the factors that determine whether to acquire external knowledge and how to assimilate it in the process of new product development by using novel dataset at the product level, conducted by RIETI in 2011. We distinguish whether technology partners are also business partners such as suppliers or customers, and show their distinct patterns. In the case that technology partners are not business partners, patents play an important role in moderating transaction costs in the partnership, while co-specialization of technology and its complementary assets with partners is found for cases in which technology partners are also business partners.

Pages: 24 pages
Date: 2013-04
New Economics Papers: this item is included in nep-cse, nep-ino and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:13033

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