Ove Granstrand and Sören Sjölander
Ove Granstrand: Chalmers University of Technology, Göteborg, Sweden
Sören Sjölander: Chalmers University of Technology, Göteborg, Sweden
Abstract: This paper describes how large, typically multi-technology corporations build up and exploit their technological capability by purchasing small, technology-based firms in order to acquire their technology. The frequency, possible causes and economic effects of this phenomenon are elaborated, based on empirical studies of Swedish industry. A new mechanism for trading technology through the trading of small firms among large firms is proposed.
33 pages, January 1990
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