Transaction costs in technology transfer and implications for strategy

Abstract

What is technology transfer and why is it important for strategy? Many firms focus on innovation as a central component of their strategy to achieve a competitive advantage over their rivals. To this end, companies exploit a variety of sources of innovation, both within and outside the boundaries of the firm.¹ In-house research and development leading to product or process innovations offer certain advantages relative to outsourcing, due in particular to the transaction costs associated with contracting for knowledge. At the same time, in-house innovation is costly and fraught with risk.

Citation

Agrawal, A.K. (2009), "Transaction costs in technology transfer and implications for strategy", Nickerson, J.A. and Silverman, B.S. (Ed.) Economic Institutions of Strategy (Advances in Strategic Management, Vol. 26), Emerald Group Publishing Limited, Leeds, pp. 3-12. https://doi.org/10.1108/S0742-3322(2009)0000026003