Dominant dynamic complementarities and technology-motivated acquisitions of new, technology-based firms
by Tomi Laamanen, Erkko Autio
International Journal of Technology Management (IJTM), Vol. 12, No. 7/8, 1996

Abstract: The borderlines between a firm and its environment are becoming increasingly blurred. Small firms and large firms can be viewed as constituting innovation networks where dynamic complementarities between small and large firms are exploited. Network structures are different in different industries, markets, and in different technological systems. The characteristics of the industry, market, or technological system can be expected to affect the configuration of innovation networks. In addition, it is expected that network transactions, which provide a basic mechanism of change in networks, are different in different industries, markets, and technological systems. Studies on industry evolution in Finland and the conceptual analysis in the present paper indicate that some interrelationships exist between systemic determinants and the patterns of acquisition of new technology-based firms. The concept of dominant dynamic complementarities is developed and used to hypothesize differences in size distributions of technology-based firms in different industries. A tentative typology of dominant dynamic complementarities is developed.

Online publication date: Fri, 22-May-2009

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