External technology sources: Embodied or disembodied technology acquisition

Bruno Cassiman and Reinhilde Veugelers

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

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.

Keywords: Technology acquisition; innovation; appropriability; absorptive capacity (search for similar items in EconPapers)
JEL-codes: L22 O32 (search for similar items in EconPapers)
Date: 2000-01
New Economics Papers: this item is included in nep-dcm, nep-dev and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:444

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