Vertical separation between research and development, called herein 'external development', is an increasingly important route to market for new technologies. In this paper we consider why firms sometimes prefer external to in-house development for their inventions, despite the costs of...

Although many companies compete through the development of new technologies and products, it is well known that innovation is inherently risky and therefore may increase the ex ante likelihood of both exceptional company performance and bankruptcy. However, existing empirical studies...