Make-or-Buy Decisions in Patent Related Services

23 Pages Posted: 3 Mar 2008

See all articles by Stefan Wagner

Stefan Wagner

ESMT European School of Management and Technology


Among the most prominent theoretical frameworks dealing with the economic underlyings of firms' make-or-buy decisions are Transaction Cost Economics (TCE) and the Resource Based View (RBV). Relying on panel data covering 107 European firms over eight years, I test predictions from both TCE and RBV with regard to the outsourcing of patent related services simultaneously. Modelling the share of outsourced patent applications in a Negative Binomial Panel Regression Model, I find joint explanatory power of both approaches. My findings support previous literature, arguing for an integration of TCE and RBV to a comprehensive theoretical framework of firms' make-or-buy decisions.

Keywords: outsourcing, make-or-buy, resource based view, transaction cost economics, patent attorney, IP department

JEL Classification: L22, L80, M21

Suggested Citation

Wagner, Stefan, Make-or-Buy Decisions in Patent Related Services. Available at SSRN: or

Stefan Wagner (Contact Author)

ESMT European School of Management and Technology ( email )

Schlossplatz 1
10117 Berlin

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