Past two of the text examined how firms develop technology through internal innovation processes.
firms can also obtain innovative capability and new technologies externally through strategic processes such alliance,joint venture,and mergers/acquisition.
These processes have the benefit to being much quicker then internal development,
but the drawback include issues such as integration of the different businesses in mergers/acquisition or managing the relationship between firms in an alliance. Thus,just as with the internal innovation strategy, a firms much evaluate the pros and cons of the different strategic choice involved in obtaining technology externally and then decide what is best for the business in its given context and environment.