When and why do manufacturer firms could decide to develop a technology in-house?
Technology is a means to achieving a business goal, similar to the way companies hire people to help meet specific business objectives. They don’t hire people just for the sake of hiring; they hire after establishing clear roles and responsibilities. This should be also the case when developing technology. Your goals should be clear and aligned to your core business strategy. This strategic intent is the key to identifying what and how of the new technology. The budget for the new technology should include strategy, development, testing, support, training, equipment, and manpower. Regardless of the financial investment needed, a cultural adjustment will be required as well.
Prem Nath Panday:
I have now found an author that pointed out your proposition: "Furthermore, contract R&D may, depending on the particular case, have great similarities with an employment contract." (Granstrand et al. 1992, p. 115).
Granstrand, O.; Bohlin, E.; Oskarsson, C.; Sjoberg, N (1992): External technology acquisition in large multi-technology coporations. In R&D Management 22 (2), pp.111-133.
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