The Induce versus Purchase Decision: An Empirical Analysis of Industrial R&D

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Albert N. Link, Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: With the recent slowdown in productivity growth within the economy, R&D has come under scrutiny as a policy target variable. If such targeting is to be effective, it must be realized that not all innovations employed within a firm are induced by the firm through its own R&D: many innovations are purchased through technological licensing or in the form of new capital equipment. Here, interfirm differences in this “make” versus “buy” strategy are analyzed within the context of the Utterback-Abernathy production process lifecycle. Our findings suggest that (1) alternative sources to a firm's R&D for stimulating innovation may prove a viable strategy for federal targeting and (2) extrapolating the Utterback-Abernathy model to an industry formulation has empirical validity.

Additional Information

Publication
Decision Sciences, January 1983, 14(1): 46-61
Language: English
Date: 1983
Keywords
R and D, economic analysis, organization, management theory

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