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Internal R & D expenditures and external technology sourcing

Authors
Journal
Research Policy
0048-7333
Publisher
Elsevier
Publication Date
Volume
26
Issue
3
Identifiers
DOI: 10.1016/s0048-7333(97)00019-x
Keywords
  • Internal R & D
  • External Sourcing
  • Cooperation
  • Two-Way Relationship

Abstract

Abstract The paper examines the two-way relationship between external R & D activities and internal R & D expenditures on a cross-section of Flemish R & D active companies. The analysis extends the classical explanatory variables like size, diversification, ownership structure and technological opportunities to include the impact of various external sourcing strategies. R & D cooperation and to a lesser extent R & D contracted out are found to have a significant positive effect on internal R & D but only if the companies have absorptive capacity in the form of a full-time staffed R & D department. At the same time, firms are found to be more frequently engaged in R & D cooperation, the more they spend on internal R & D.

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