To Use or To Sell Technological Knowledge

Cristiano Antonelli

Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo Alberto. WP series from University of Turin

Abstract: The analysis of the trade-off between to make and to buy is an essential tool of the theory of the firm. Much less attention has been paid to the analysis of the effects and determinants of the trade--off between to sell and to make. Transaction costs matter both on the demand and the supply side. Knowledge transaction costs on the supply side play a major role to make operational the notion of imperfect approprability. This approach applies to the economics of knowledge. Technological knowledge, in fact, can be conceived as an intermediary product which can be either sold in the markets for disembodied knowledge or used as an internal input for other products.

Pages: 26 pages
Date: 2004-10
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