Innovation and knowledge utilization in buyer-supplier networks

We focus on a buyer as a source of technological knowledge for a supplier, and examine factors that make a supplier utilize technological knowledge from the buyer. Specifically, we study buyer innovation, technological similarity between a supplier and a buyer, a supplier's dependence on a buyer, and buyer-supplier size asymmetry, and how these factors interrelate in influencing the extent of supplier's knowledge utilization from the buyer. We use panel data on supplier-buyer relationships, patenting activities of firms, and accounting information to test the hypotheses.