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Absorptive capacity and the search for innovation

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  • Fabrizio, Kira R.
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    Abstract

    This paper examines the link between a firm's absorptive capacity-building activities and the search process for innovation. We propose that the enhanced access to university research enjoyed by firms that engage in basic research and collaborate with university scientists leads to superior search for new inventions and provides advantage in terms of both the timing and quality of search outcomes. Results based on a panel data of pharmaceutical and biotechnology firms support these contentions and suggest that the two research activities are mutually beneficial, but also uncover intriguing differences that suggest differing roles of internally and externally developed knowledge.

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    File URL: http://www.sciencedirect.com/science/article/B6V77-4VDGTG4-1/2/7e0e627f854e40d6fb7b08308b6e49d5
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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 38 (2009)
    Issue (Month): 2 (March)
    Pages: 255-267

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    Handle: RePEc:eee:respol:v:38:y:2009:i:2:p:255-267

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    Web page: http://www.elsevier.com/locate/respol

    Related research

    Keywords: Absorptive capacity Innovation Pharmaceutical and biotechnology University research;

    References

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    7. Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, vol. 65(6), pages 1389-1420, November.
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    12. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
    13. McMillan, G. Steven & Narin, Francis & Deeds, David L., 2000. "An analysis of the critical role of public science in innovation: the case of biotechnology," Research Policy, Elsevier, vol. 29(1), pages 1-8, January.
    14. Narin, Francis & Hamilton, Kimberly S. & Olivastro, Dominic, 1997. "The increasing linkage between U.S. technology and public science," Research Policy, Elsevier, vol. 26(3), pages 317-330, October.
    15. Fleming, Lee & Sorenson, Olav, 2001. "Technology as a complex adaptive system: evidence from patent data," Research Policy, Elsevier, vol. 30(7), pages 1019-1039, August.
    16. Lee Fleming, 2001. "Recombinant Uncertainty in Technological Search," Management Science, INFORMS, vol. 47(1), pages 117-132, January.
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