The acquisition and commercialization of invention in American manufacturing: Incidence and impact

•Find 16% of U.S. manufacturing firms introduced new to industry product innovation.•Also find 49% of innovators report their most important new product are externally originated.•About one-third of external sourcing involves market transactions.•Customers most pervasive outside source, but inventions from “technology specialists” more valuable.•Denying firms use of outside sources could lead to a 33–45% reduction in the share of firms that innovate.