The aim of this paper is to analyze the effects of technological opportunities on the innovation activities of firms, depending on their absorptive capacities. The importance and impacts of the ability of firms to use external knowledge sources were inquired especially for external knowledge...

Recent econometric studies only emphasize the role of longterm demand expectations and technological capability. They neglect the impact of buyer market structure on innovative efforts of input suppliers....

In this paper the importance and the effects of technological opportunities, stemming from academic research, on the innovation activities of firms in the German automobile supplyindustry are investigated.