Markets for Technology and the Importance of Firm-specific Search for Innovation Performance

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    Firms rely increasingly on external knowledge, e.g. from universities, to improve their innovation performance. Existing research models the acquisition of knowledge either as a firm-specific search or a purchase on markets for technology. The former implies that a firm chooses and develops relationships with knowledge sources while the latter suggests a transaction governed by markets. We argue that both mechanisms increase a firm?s innovation performance but that they are interrelated. While on the firm level firm-specific search and acquisitions on markets for technology complement each other, the costs of firm-specific search are only justified in underdeveloped markets. Otherwise, market transactions provide higher efficiency and flexibility. This negative cross-level interaction effect is stronger the more knowledge in an industry is covered by markets for technology. We test and support these hypotheses for a sample of 2131 German firms.
    Original languageEnglish
    Publication date2014
    Number of pages38
    Publication statusPublished - 2014
    EventThe DRUID Society Conference 2014: Entrepreneurship - Organization - Innovation - Copenhagen Business School, Frederiksberg, Denmark
    Duration: 16 Jun 201418 Jun 2014
    Conference number: 36


    ConferenceThe DRUID Society Conference 2014
    LocationCopenhagen Business School
    Internet address

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