Arguments against vertical integration

• Rapid technological development (=lots of uncertainty with whom to integrate) against upstream vertical integration. It is perhaps better to buy inputs from market to ensure that you get the newest stuff • When there is (fluctuating) limited capacity within firm. Can do a quasi integration, using its own limited capacity in the input stage and buy the rest of the input from market  uncertainty in the company's ‘internal’ market can cause outsourcing of parts of production to put the risk on other companies Example: Within the Wind industry, it is common that producers both make inputs themselves and buy the same inputs on the market.