Determinants of Demand for Technology in Relationships with Complementary Assets in Japanese Firms

Author Name KANI Masayo (Tezukayama University) / MOTOHASHI Kazuyuki (Faculty Fellow, RIETI)
Creation Date/NO. April 2013 13-E-033
Research Project Empirical Studies on the International Comparison of Open Innovation
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There is a growing trend of open innovation in the new product development process, while technology insourcing has not been investigated very well as compared to technology outsourcing in empirical literature. In this paper, we examine the factors that determine whether to acquire external knowledge and how to assimilate it in the process of new product development by using novel dataset at the product level, conducted by RIETI in 2011. We distinguish whether technology partners are also business partners such as suppliers or customers, and show their distinct patterns. In the case that technology partners are not business partners, patents play an important role in moderating transaction costs in the partnership, while co-specialization of technology and its complementary assets with partners is found for cases in which technology partners are also business partners.

Published: Kani, Masayo, and Kazuyuki Motohashi, 2017. "Determinants of demand for technology in relationships with complementary assets among Japanese firms," China Economic Journal, Vol. 10(2), pp. 244-262