Change search
ReferencesLink to record
Permanent link

Direct link
Advanced purchasing, spillovers and innovative discovery
2011 (English)In: Journal of evolutionary economics, ISSN 0936-9937, E-ISSN 1432-1386, Vol. 21, no 1, 121-139 p.Article in journal (Refereed) Published
Abstract [en]

Advanced product development distinguishes itself by being surrounded by a "cloud of technology spillovers" available to external users in proportion to their competence to commercialize them. The local capacity to commercialize spillovers is experience based and hence more narrow than the range of innovations. The cloud will therefore be incompletely explored. While the value of the cloud to society may be greater than the development investment, the value captured by the producer is often not sufficient to make the product development privately profitable. The producer faces the property rights problem of how to charge for the dual product it develops, the product itself and as much as possible for the technology cloud. The public and private customers, however, appreciate the situation differently. While the former appears in the double customer role of being interested in both the product procured and the spillover benefits to society, the latter is not interested in paying for spillovers that only benefit society. Marketing the product, therefore, involves the ability to present a credible case for the economic value to society of the spillovers. To do that, a theory is needed that demonstrates both the user value to the customer, and the entrepreneurial capacity of the economy to commercialize the spillovers. The theoretical argument is illustrated with the case of downstream industrial business formation around Swedish military aircraft industry.

Place, publisher, year, edition, pages
2011. Vol. 21, no 1, 121-139 p.
Keyword [en]
Competence bloc, Experimentally organized economy, Integrated production, Joint customership, Receiver competence, Spillovers, Technology diffusion
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-31002DOI: 10.1007/s00191-010-0194-0ISI: 000285974300006ScopusID: 2-s2.0-78650994880OAI: diva2:402256
QC 20110307Available from: 2011-03-07 Created: 2011-03-07 Last updated: 2011-03-07Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full textScopus

Search in DiVA

By author/editor
Eliasson, Gunnar
By organisation
In the same journal
Journal of evolutionary economics
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Altmetric score

Total: 29 hits
ReferencesLink to record
Permanent link

Direct link