Vertical Integration and Technological Innovation: A Transaction Cost Approach

by Yeong Heok Lee

Overview

Originally published in 1994 this volume investigates the relationship between a firm's decision to integrate vertically and its research and development (R & D) strategy. Literature on vertical integration is reviewed and a framework presented to analyze the costs and benefits of vertical integration. The theoretical basis for the proposed hypostheses is investigated and the hypotheses tested empirically.

Product Details

ISBN-13:	9781138315037
Publisher:	Taylor & Francis
Publication date:	07/01/2020
Series:	Studies on Industrial Productivity: Selected Works
Pages:	140
Product dimensions:	6.12(w) x 9.19(h) x (d)

Table of Contents

1. Introduction 2. Costs and Benefits of Vertical Integration 3. Knowledge Complementarity Effect and Transaction Costs 4. Vertical Integration and Technological Innovation in the US Electronics Industry 5. Conclusion

Editorial Reviews

Not a guide for managers but an academic study of the relationship between a company's vertical expansion and its research and development activity. Argues that vertical integration, rather than the size of the company, generates a greater return from research; that companies pursue such integration in the expectation of future technological innovations; and that a transaction cost model can explain why they do so rather than contract research or buy technology. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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