Markets for technology

Trade in disembodied technology – the market for technology – has become common, giving firms more strategic options as they can buy, sell and use their technologies internally. At the industry level, this encourages a division of innovative labour between firms with a comparative advantage in the generation of innovation and those better at the development and commercialization of innovations. Technology trade depends upon institutions, demand conditions and the internal organization of firms. Whether markets for technology will thrive is unclear, as is whether strategic patenting will affect their development.