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Choosing Between Internal and Non-internal R&D Activities: Some Technological and Economic Factors

Choosing Between Internal and Non-internal R&D Activities: Some Technological and Economic Factors This paper evaluates some of the technological and economic factors that underlie the choice between in-house R&D, R&D alliances and outsourcing. We recount the reasons for the growth in non-internal activities, and explain why these are not as prevalent for R&D as other value-adding activities, and highlight that outsourcing is most often undertaken where multiple, substitutable sources are available. We then develop two frameworks. First, a static framework is developed, which evaluates the choice of mode based on a firm's distribution of competencies, and their strategic importance. Second, a dynamic framework is developed that demonstrates how the static framework differs depending on whether the firm is engaged in pre-paradigmatic, paradigmatic or post-paradigmatic sectors. We also consider the effect of new technologies being introduced to a firm's portfolio of competencies http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Technology Analysis & Strategic Management Taylor & Francis

Choosing Between Internal and Non-internal R&D Activities: Some Technological and Economic Factors

Technology Analysis & Strategic Management , Volume 13 (3): 23 – Sep 1, 2001
23 pages

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References (50)

Publisher
Taylor & Francis
Copyright
Copyright Taylor & Francis Group, LLC
ISSN
1465-3990
eISSN
0953-7325
DOI
10.1080/09537320120088183
Publisher site
See Article on Publisher Site

Abstract

This paper evaluates some of the technological and economic factors that underlie the choice between in-house R&D, R&D alliances and outsourcing. We recount the reasons for the growth in non-internal activities, and explain why these are not as prevalent for R&D as other value-adding activities, and highlight that outsourcing is most often undertaken where multiple, substitutable sources are available. We then develop two frameworks. First, a static framework is developed, which evaluates the choice of mode based on a firm's distribution of competencies, and their strategic importance. Second, a dynamic framework is developed that demonstrates how the static framework differs depending on whether the firm is engaged in pre-paradigmatic, paradigmatic or post-paradigmatic sectors. We also consider the effect of new technologies being introduced to a firm's portfolio of competencies

Journal

Technology Analysis & Strategic ManagementTaylor & Francis

Published: Sep 1, 2001

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