| Abstract: |
This paper analyzes the choice between different external technology sourcing
activities of a firm. On the one hand, the firm can acquire new technology
which is embodied in personnel. On the other hand, the firm can obtain new
technology disembodied through a licensing agreement or by outsourcing the
technology development from an R&D contractor. Building on Cassiman and
Veugelers (2006), we test whether embodied and disembodied technology
acquisitions are complementary activities or rather behave as substitute
technology acquisition alternatives. We find that while internal and external
technology acquisition are complementary innovation activities, the actual
choice of external technology sourcing between embodied or disembodied modes
is substitutive for smaller firms. The evidence for larger firms suggests that
different external technology sourcing activities are complementary, but in
this case the results are suggestive although not strongly significant. |