ABSTRACT
The new analysis of the characteristics of knowledge indivisibility and appropriability makes it possible to appreciate the key role of external idiosyncratic factors in shaping the intentional strategy of firms about the direction of technology strategies. These strategies lead to the introduction of directional technological change based upon the identification and combination of the external sources of complementary technological knowledge and of the idiosyncratic production factors that it is convenient to use intensively both to reduce production costs and to increase the mark-up.
