Journal article
Productivity and the role of complementary assets in firms' demand for technology innovations
Industrial and corporate change, v 19(3), pp 839-869
01 Jun 2010
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This article uses data on transactions in the pharmaceutical industry to examine the demand-side of technology outsourcing. By integrating a transaction cost economics perspective with the analysis of internal R&D capabilities, we find that firms with relatively more cospecialized complementary assets or relatively strong internal R&D productivity have a lower propensity to source a technology from outside the firm. We show, however, that since downstream capabilities and internal R&D are complementary activities in the presence of asset specificity and transaction costs, a decrease in internal R&D productivity reduces the marginal value of the downstream assets within firm boundaries, thus stimulating the demand for external technology.
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Details
- Title
- Productivity and the role of complementary assets in firms' demand for technology innovations
- Creators
- Marco Ceccagnoli - Georgia Institute of TechnologyStuart J. H. Graham - Georgia Institute of TechnologyMatthew J. Higgins - Georgia Institute of TechnologyJeongsik Lee - Georgia Institute of Technology
- Publication Details
- Industrial and corporate change, v 19(3), pp 839-869
- Publisher
- Oxford Univ Press
- Number of pages
- 31
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Management
- Web of Science ID
- WOS:000279110200009
- Scopus ID
- 2-s2.0-77955761633
- Other Identifier
- 991021881404204721
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InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Business
- Economics
- Management