Despite the importance of Open Technology Innovation Activity (OTIA) for firm value, the literature investigating effects of OTIA announcements of developing country firms is not known in international academic circles. Our study using an event study approach examines the effects of
OTIA (technology import and joint R&D) announcements of firms in Korea, one of the leading developing and highly innovative countries. We find that the announcements of OTIA produce positive average abnormal returns. Interestingly, unlike the prior studies on developed country firms, OTIA
with firms in the homogenous industry leads to greater firm value than that involving firms in heterogenic industries. This implies an importance of a technological fusion with external firms in different industries for value of developing country firms. In addition, this article finds no
home bias that a nationality of partner firms is not essential for the relation between OTIA and value of firms.
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open technology innovation activity;
Document Type: Research Article
School of Business Administration, Kyungpook National University, Buk-GuDaegu 702-701, Republic of Korea
Department of Business Administration, Gyeongsang National University, JinjuGyeongnam 660-701, Republic of Korea
Publication date: 01 September 2012
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