Title: Dominant dynamic complementarities and technology-motivated acquisitions of new, technology-based firms

Authors: Tomi Laamanen, Erkko Autio

Addresses: Helsinki University of Technology Institute of Industrial Management, Otakaari lF, FIN-02150 Espoo, Finland. ' Helsinki University of Technology Institute of Industrial Management, Otakaari lF, FIN-02150 Espoo, Finland

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.

Keywords: technology strategy; new technology-based firms; NTBFs; technology transfer; technological systems; national systems of innovation; technology acquisition; technology management; innovation networks; Finland.

DOI: 10.1504/IJTM.1996.025515

International Journal of Technology Management, 1996 Vol.12 No.7/8, pp.769 - 786

Published online: 22 May 2009 *

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