Make, buy or both? R&D strategy selection

Abstract The aim of this paper is to increase our knowledge of a firm's innovative behaviour by jointly analysing its internal resources, industry characteristics and appropriability conditions as drivers of its R&D strategy selection: make , buy and make-buy . Based on panel data (1992–2005) covering 1539 Spanish manufacturing firms, results show that firms lacking organisational resources and competing in stable markets prefer the buy strategy. Firms with a high level of technological resources that are immersed in high-tech industries are prone to selecting the make-buy strategy. Internationalised firms with high levels of appropriability prefer the make strategy.