External technology acquisition in Russian firms

Abstract

Few companies today are able to be competitive and sustain their market position by relying solely on their internally developed technologies and R&D. In Russia, as in other emerging markets, companies have to compete not only with local firms, but also with foreign companies, who have more resources and experience. Thus, Russian companies aim to make their innovation processes more effective. External knowledge and technology acquisition has proven to affect positively companies’ competitiveness, innovation and financial performance. This study analyses external technology acquisition in Russian firms based on the data from survey of 206 companies conducted in 2009–2010. The results show that companies sourcing, acquiring and implementing external technologies have been able to improve their performance by enhancing new product development and decreasing R&D costs. Furthermore, external technology acquisition helps companies to focus on their core competences, and has a positive effect on companies’ competitiveness and market expansion.