Technology market intermediaries and innovation

On the markets for technology (MfT) we currently observe a sizable growth, observe that firms still face immanent transaction obstacles and the emergence of technology market intermediaries (TMI). Why TMIs emerge and how they attempt to facilitate transactions however is not yet sufficiently understood. For these two questions we propose theoretical explanations within this paper building primarily on the arguments of Stigler (1951), North (1996) and Williamson (1979). Throughout this argumentation we combine the two related levels of analysis. We take into account the dynamics on market level and the micro level of the firm with regard to IP transactions in which firms are involved when pursuing open innovation.We argue that the growing MfT on the one hand and immanent transaction obstacles on the other hand create business opportunities for entrepreneurs to develop new transaction models (service innovations) offered by TMIs as a new type of market actor (organizational innovation) to support firms managing transactions. Following the notion of Stigler (1951) and North (1996), the emergence of TMIs as organizational innovation has an impact on the way how transactions were 'traditionallymanaged and thus creates an institutional change that leads to further division of labor on the MfT.Following Williamson (1979) we propose that new transaction models developed by TMIs aim to commoditize the traditionally idiosyncratic governance structuresmaking transactions more economically. However, it remains to be seen which of the newly developed models will survive and deliver more economic transactionscontributing to further developments towards efficient markets.