There are two chief ways of acquiring external technology (Narula, 2001):
- Quasi-external activities, such as mergers and acquisitions (M&A) and strategic alliances, and
- Fully external activities, such as licensing and R&D contracts.
This book addresses both types of external technology sourcing, with a particular focus on discovering what tangible and intangible benefits, if any, the external sources confer on technology acquiring firms. We approach this question from an economic perspective by investigating the effects of specific external activities have on firms’ innovation performance.