Abstract

http://ssrn.com/abstract=1617054
 
 

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Productivity and the Role of Complementary Assets in Firms’ Demand for Technology Innovations


Marco Ceccagnoli


Scheller College of Business, Georgia Tech

Stuart J. H. Graham


Georgia Institute of Technology - Scheller College of Business; United States Patent and Trademark Office

Matthew John Higgins


Georgia Institute of Technology - Scheller College of Business; National Bureau of Economic Research (NBER)

Jeongsik Lee


Georgia Institute of Technology - College of Management

June 2010

Industrial and Corporate Change, Vol. 19, Issue 3, pp. 839-869, 2010

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.

Accepted Paper Series


Not Available For Download

Date posted: June 4, 2010  

Suggested Citation

Ceccagnoli, Marco and Graham, Stuart J. H. and Higgins, Matthew John and Lee, Jeongsik, Productivity and the Role of Complementary Assets in Firms’ Demand for Technology Innovations (June 2010). Industrial and Corporate Change, Vol. 19, Issue 3, pp. 839-869, 2010. Available at SSRN: http://ssrn.com/abstract=1617054 or http://dx.doi.org/dtq033

Contact Information

Marco Ceccagnoli (Contact Author)
Scheller College of Business, Georgia Tech ( email )
800 W Peachtree St. NW
Atlanta, GA 30308-0520
United States
Stuart J.H. Graham
Georgia Institute of Technology - Scheller College of Business ( email )
800 W. Peachtree Str. NW
Atlanta, GA 30308
United States
404-385-5107 (Phone)
404-894-6030 (Fax)
United States Patent and Trademark Office ( email )
600 Dulany Street
Alexandria, VA 22314
United States
HOME PAGE: http://www.uspto.gov
Matthew John Higgins
Georgia Institute of Technology - Scheller College of Business ( email )
800 West Peachtree Street
Atlanta, GA 30308
United States
404-894-4368 (Phone)
404-894-6030 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Jeongsik Lee
Georgia Institute of Technology - College of Management ( email )
800 West Peachtree St., NW
Atlanta, GA 30308-1149
United States
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