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To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.respol.2004.08.003 Byline: Fabrizio Cesaroni Keywords: Market for technology; Technological outsourcing; Technology transfer; Product diversification; Chemical industry Abstract: This paper analyses how the existence of competitive technology markets affects firms' technology sourcing decisions, and their propensity to enter into new product markets. While the division of innovative labour has received increasing attention within the economic literature, this paper focuses on its managerial implications. By means of a specialised database, we assess how patterns of technology trade influence firms' technology and diversification strategies in the chemical industry. We find that, the larger the market for technology, the stronger the advantages to substitute internal R&D with outsourcing, and to increase the degree of product diversification. Author Affiliation: Laboratory of Economics and Management, St. Anna School of Advanced Studies, Piazza Martiri della Liberta 33, Pisa 56127, Italy Article History: Received 2 July 2003; Revised 27 July 2004; Accepted 4 August 2004

The article examines the integration of both short- and long-term perspectives in research and development, specifically the balance between valorization of competencies/results and exploration of technological advancements. The firms Telecom Italia Lab and Centro Ricerche Fiat are used as illustrations.

The implementation of a change in IP strategy represents a challenging task for firms, because organizational resources and capabilities (procedures, routines, and know-how) that are required in the new strategic context may be lacking. This article examines the operational solutions adopted by the semiconductor manufacturer STMicroelectronics to successfully accomplish an IP strategy shift. It shows how the implementation of the new strategic approach required a stricter cross-functional integration between IP and R&D through the arrangement of cross-functional teams, the development of proper IP management procedures, and the diffusion of an IP culture throughout the organization.