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External technology sourcing and innovation performance in LMT sectors: An analysis based on the Taiwanese Technological Innovation Survey

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  • Tsai, Kuen-Hung
  • Wang, Jiann-Chyuan
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    Abstract

    This paper presents the strategies that low- and medium-technology (LMT) firms adopt to generate technological innovation and investigates the impact of these approaches on the firms' innovation performances. These analyses are based on a sample from the Taiwanese Technological Innovation Survey totalling 753 LMT firms. The descriptive statistics show that about 95% of the firms acquired technology by technology licensing, while 32% of the firms engaged in R&D outsourcing. The firms in the sample acquiring external technological knowledge through collaboration with suppliers, clients, competitors, and research organizations are about 20%, 18%, 8%, and 23%, respectively. Using a moderated hierarchical regression analysis, this study reveals interesting results. First, inward technology licensing does not contribute significantly to innovation performance. Second, internal R&D investment negatively moderates the effect of R&D outsourcing on innovation performance. Third, internal R&D investment contingently impacts the different types of partners on innovation performance: by collaborating with different types of partners, firms with more internal R&D investment gain higher innovation returns than firms with fewer internal R&D activities. The results of this study contribute to a sharper understanding of technological innovation strategies and their effects on technological innovation performance in LMT sectors.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research Policy.

    Volume (Year): 38 (2009)
    Issue (Month): 3 (April)
    Pages: 518-526

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    Handle: RePEc:eee:respol:v:38:y:2009:i:3:p:518-526

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

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    Keywords: Technological innovation External technology acquisition Collaborative network LMT;

    References

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    Cited by:
    1. Luca Berchicci & Jeroen P.J. de Jong & Mark Freel, 2013. "Remote Collaboration, Absorptive Capacity, and the Innovative Output of High-tech Small Firms," DRUID Working Papers 13-01, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    2. Wei-Shong Lin & Jui-Ling Huang & Margaret L. Sheng, 2014. "How the Organizational Goals Affect Knowledge Management," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 3(1), pages 3-22.
    3. Vivas-Augier, Carlos & Barge-Gil, Andrés, 2012. "Impact on firms of the use of knowledge providers: a systematic review of the literature," MPRA Paper 41042, University Library of Munich, Germany.
    4. Jae-Seung Han & Sang-Yong Lee, 2013. "The impact of technology transfer contract on a firm’s market value in Korea," The Journal of Technology Transfer, Springer, vol. 38(5), pages 651-674, October.
    5. Hung, Shiu-Wan & Wang, An-Pang, 2012. "Entrepreneurs with glamour? DEA performance characterization of high-tech and older-established industries," Economic Modelling, Elsevier, vol. 29(4), pages 1146-1153.
    6. Martinez-Noya, Andrea & Garcia-Canal, Esteban & Guillen, Mauro F., 2012. "International R&D service outsourcing by technology-intensive firms: Whether and where?," Journal of International Management, Elsevier, vol. 18(1), pages 18-37.

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