Division of labor has benefits in addition to the direct productivity increases from specialization: In this paper we study how the development of specialized upstream technology suppliers improves access and lowers investment costs for latecomer downstream firms. Using a simple model, we test...

Drawing on their previous book-length study published in 2000, the authors examine the nature and functioning of markets for technology, namely markets for intermediate technological inputs, as well as their implications for business and public policy. Markets for technology are not easy to...

Firms have typically tried to profit from their technical innovations by selling them indirectly, embedded in goods and services. Markets for technology, in which innovations are sold or licensed, have been much rarer. Yet, trade in technology has grown systematically over the past 20 years, as...