Complementary Resources and the Exploitation of Technological Innovations

What is it about?

Technological innovation often results when the resources of a small firm are combined with those of a large one. This is because small and large firms characteristically possess complementary resources whose combination can facilitate innovation success. The possession of complementary innovation-producing resources by small and large firms helps explain patterns of interaction among firms in dynamic, technology-based industries. Propositions are developed that outline how typical resources of small and large firms can be used to explain industry-level phenomena surrounding technological change.

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Why is it important?

Technology cycles and complementary resources can contribute to inter-firm innovation activity, including acquisitions.