Journal Article

A Tale of Two Literatures: Transaction Cost and Property Rights in Innovation Outsourcing

Authors

  • Nishaal Gooroochurn
  • Aoife Hanley
Publication Date

This paper investigates the relative importance of property rights and transactions cost factors in driving the decision of firms to outsource innovation. Using data for over 8000 firms from the UK Community Innovation Survey, we find that property right factors dominate over transaction cost factors. Transaction cost variables are more important for process innovation, while property rights variables are more significant for firms involved in product innovation. In addition, we find that firms involved in process innovation have a higher probability of outsourcing innovation than firms involved in product innovation.

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Info

JEL Classification
L2;O3
DOI
10.1016/j.respol.2007.07.001

Key Words

  • Besitzrechte
  • outsourcing
  • property rights
  • transaction costs