IDEAS home Printed from https://ideas.repec.org/a/kap/jtecht/v41y2016i2d10.1007_s10961-015-9413-z.html
   My bibliography  Save this article

Linking technological and educational level diversities to innovation performance

Author

Listed:
  • Annapoornima M. Subramanian

    (National University of Singapore)

  • Young Rok Choi

    (Ulsan National Institute of Science and Technology)

  • Soo-Hoon Lee

    (Old Dominion University)

  • Chang-Chieh Hang

    (National University of Singapore)

Abstract

In this study, we explore the extent to which diversity of educational levels among research scientists and engineers (RSEs) in the context of a firm’s level of technological diversity influences innovation performance. We used data from the 2004–2008 National R&D Survey in Singapore. The results from 366 firms across different industries indicate that when a firm’s technological domains are heterogeneous, those firms with an RSE workforce comprising similar educational levels have positive innovation performance, measured as the number of patent applications, while those comprising diverse educational levels have negative innovation performance. Our further exploration of the positive interaction between technological domain heterogeneity and similarity of educational levels suggests that firms that had a high ratio of RSEs with lower educational levels had more positive patent outcomes compared to those that had a high ratio of RSEs with higher educational levels. The results show that there are limits to the strength of technological diversity in a firm’s absorptive capacity as explained by organizational demography.

Suggested Citation

  • Annapoornima M. Subramanian & Young Rok Choi & Soo-Hoon Lee & Chang-Chieh Hang, 2016. "Linking technological and educational level diversities to innovation performance," The Journal of Technology Transfer, Springer, vol. 41(2), pages 182-204, April.
  • Handle: RePEc:kap:jtecht:v:41:y:2016:i:2:d:10.1007_s10961-015-9413-z
    DOI: 10.1007/s10961-015-9413-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10961-015-9413-z
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10961-015-9413-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Heli & Chen, Wei-Ru, 2010. "Is firm-specific innovation associated with greater value appropriation? The roles of environmental dynamism and technological diversity," Research Policy, Elsevier, vol. 39(1), pages 141-154, February.
    2. Kristina Dahlin & L. Weingart & P. Hinds, 2005. "Team diversity and information use," Post-Print hal-00480406, HAL.
    3. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    4. Hagedoorn, John & Cloodt, Myriam, 2003. "Measuring innovative performance: is there an advantage in using multiple indicators?," Research Policy, Elsevier, vol. 32(8), pages 1365-1379, September.
    5. van den Bergh, Jeroen C.J.M., 2008. "Optimal diversity: Increasing returns versus recombinant innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 565-580, December.
    6. Deborah Gladstein Ancona & David F. Caldwell, 1992. "Demography and Design: Predictors of New Product Team Performance," Organization Science, INFORMS, vol. 3(3), pages 321-341, August.
    7. Keller, Wolfgang, 1996. "Absorptive capacity: On the creation and acquisition of technology in development," Journal of Development Economics, Elsevier, vol. 49(1), pages 199-227, April.
    8. Wesley M. Cohen & Daniel A. Levinthal, 1994. "Fortune Favors the Prepared Firm," Management Science, INFORMS, vol. 40(2), pages 227-251, February.
    9. Masao Nakamura & Pierre Mohnen & Cathy Hoareau, 2003. "What type of enterprise forges close links with universities and government labs? Evidence from CIS 2," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(2-3), pages 133-145.
    10. Suzuki, Jun & Kodama, Fumio, 2004. "Technological diversity of persistent innovators in Japan: Two case studies of large Japanese firms," Research Policy, Elsevier, vol. 33(3), pages 531-549, April.
    11. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation in Large and Small Firms: An Empirical Analysis," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 1, pages 3-15, Edward Elgar Publishing.
    12. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    13. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    14. Daniel A. Levinthal, 1997. "Adaptation on Rugged Landscapes," Management Science, INFORMS, vol. 43(7), pages 934-950, July.
    15. Anker Lund Vinding, 2006. "Absorptive capacity and innovative performance: A human capital approach," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 507-517.
    16. Bercovitz, Janet & Feldman, Maryann, 2011. "The mechanisms of collaboration in inventive teams: Composition, social networks, and geography," Research Policy, Elsevier, vol. 40(1), pages 81-93, February.
    17. Lee Fleming, 2001. "Recombinant Uncertainty in Technological Search," Management Science, INFORMS, vol. 47(1), pages 117-132, January.
    18. Rebecca Henderson & Iain Cockburn, 1996. "Scale, Scope, and Spillovers: The Determinants of Research Productivity in Drug Discovery," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 32-59, Spring.
    19. Gambardella, Alfonso & Torrisi, Salvatore, 1998. "Does technological convergence imply convergence in markets? Evidence from the electronics industry," Research Policy, Elsevier, vol. 27(5), pages 445-463, September.
    20. Leiponen, Aija, 2005. "Skills and innovation," International Journal of Industrial Organization, Elsevier, vol. 23(5-6), pages 303-323, June.
    21. Anneli Kaasa, 2007. "Effects Of Different Dimensions Of Social Capital On Innovation: Evidence From Europe At The Regional Level," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 51, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    22. Charlene L. Nicholls‐Nixon & Carolyn Y. Woo, 2003. "Technology sourcing and output of established firms in a regime of encompassing technological change," Strategic Management Journal, Wiley Blackwell, vol. 24(7), pages 651-666, July.
    23. Fulvio Castellacci, 2011. "Closing the Technology Gap?," Review of Development Economics, Wiley Blackwell, vol. 15(1), pages 180-197, February.
    24. Andrea Fernández-Ribas & Philip Shapira, 2009. "Technological diversity, scientific excellence and the location of inventive activities abroad: the case of nanotechnology," The Journal of Technology Transfer, Springer, vol. 34(3), pages 286-303, June.
    25. Marcus Berliant & Masahisa Fujita, 2011. "The Dynamics of Knowledge Diversity and Economic Growth," Southern Economic Journal, John Wiley & Sons, vol. 77(4), pages 856-884, April.
    26. Olof Ejermo, 2005. "Technological Diversity and Jacobs’ Externality Hypothesis Revisited," Growth and Change, Wiley Blackwell, vol. 36(2), pages 167-195, June.
    27. Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67(3), pages 297-297.
    28. Morgan, Robert P & Kruytbosch, Carlos & Kannankutty, Nirmala, 2001. "Patenting and Invention Activity of U.S. Scientists and Engineers in the Academic Sector: Comparisons with Industry," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 173-183, January.
    29. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
    30. Quintana-Garci­a, Cristina & Benavides-Velasco, Carlos A., 2008. "Innovative competence, exploration and exploitation: The influence of technological diversification," Research Policy, Elsevier, vol. 37(3), pages 492-507, April.
    31. Spyros Arvanitis & Martin Woerter, 2009. "Firms' transfer strategies with universities and the relationship with firms' innovation performance," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(6), pages 1067-1106, December.
    32. Jacobsson, Staffan & Oskarsson, Christer & Philipson, Joakim, 1996. "Indicators of technological activities -- comparing educational, patent and R & D statistics in the case of Sweden," Research Policy, Elsevier, vol. 25(4), pages 573-585, June.
    33. Scott E. Page, 2007. "Prologue to The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies," Introductory Chapters, in: The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies, Princeton University Press.
    34. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
    35. Hyukjoon Kim & Hyojeong Lim & Yongtae Park, 2009. "How should firms carry out technological diversification to improve their performance? An analysis of patenting of Korean firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(8), pages 757-770.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lykopoulou Zacharoula, 2020. "Education Management And The Impact Of Innovation," Entrepreneurship, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 8(2), pages 183-196.
    2. Ismail Khan & Imran Khan & Bilal bin Saeed, 2019. "Does board diversity affect quality of corporate social responsibility disclosure? Evidence from Pakistan," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1371-1381, November.
    3. Zhang, Hongyan & Zhang, Lin, 2023. "Public support and energy innovation: Why do firms react differently?," Energy Economics, Elsevier, vol. 119(C).
    4. Nooraisah Katmon & Zam Zuriyati Mohamad & Norlia Mat Norwani & Omar Al Farooque, 2019. "Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market," Journal of Business Ethics, Springer, vol. 157(2), pages 447-481, June.
    5. Ardito, Lorenzo & Messeni Petruzzelli, Antonio, 2017. "Breadth of external knowledge sourcing and product innovation: The moderating role of strategic human resource practices," European Management Journal, Elsevier, vol. 35(2), pages 261-272.
    6. Lykopoulou Zacharoula, 2020. "Innovation In Managing Educational Services," Entrepreneurship, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 8(2), pages 71-85.
    7. Andrea Setti, 2020. "Linking science-based firms with performance factors: An integrative systematic review of literature," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(2), pages 09-42, March.
    8. Grillitsch, Markus & Schubert, Torben & Srholec, Martin, 2019. "Knowledge base combinations and firm growth," Research Policy, Elsevier, vol. 48(1), pages 234-247.
    9. Cristian Barra & Roberto Zotti, 2018. "The contribution of university, private and public sector resources to Italian regional innovation system (in)efficiency," The Journal of Technology Transfer, Springer, vol. 43(2), pages 432-457, April.
    10. Wen, Jinyan & Li, Jian & Zhou, Qing & Zeng, Deming & Harms, Rainer, 2023. "How firms support formal standardization: The role of alliance portfolio and internal technological diversity," Technological Forecasting and Social Change, Elsevier, vol. 196(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Choi, Mincheol & Lee, Chang-Yang, 2021. "Technological diversification and R&D productivity: The moderating effects of knowledge spillovers and core-technology competence," Technovation, Elsevier, vol. 104(C).
    2. Quintana-Garci­a, Cristina & Benavides-Velasco, Carlos A., 2008. "Innovative competence, exploration and exploitation: The influence of technological diversification," Research Policy, Elsevier, vol. 37(3), pages 492-507, April.
    3. Schön, Benjamin & Pyka, Andreas, 2013. "The success factors of technology-sourcing through mergers & acquisitions: An intuitive meta-analysis," FZID Discussion Papers 78-2013, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    4. Maria Chiara Di Guardo & Kathryn Rudie Harrigan & Elona Marku, 2019. "M&A and diversification strategies: what effect on quality of inventive activity?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 669-692, September.
    5. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    6. Dibiaggio, Ludovic & Nasiriyar, Maryam & Nesta, Lionel, 2014. "Substitutability and complementarity of technological knowledge and the inventive performance of semiconductor companies," Research Policy, Elsevier, vol. 43(9), pages 1582-1593.
    7. René Belderbos & Leo Sleuwaegen & Reinhilde Veugelers, 2010. "Market Integration and Technological Leadership in Europe," European Economy - Economic Papers 2008 - 2015 403, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    8. repec:hal:spmain:info:hdl:2441/43aq8ffdqb82sbffkv69bt1eaa is not listed on IDEAS
    9. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    10. Choi, Jin-Uk & Lee, Chang-Yang, 2022. "The differential effects of basic research on firm R&D productivity: The conditioning role of technological diversification," Technovation, Elsevier, vol. 118(C).
    11. Seh-Hyun Yoo & Chang-Yang Lee, 2023. "Technological diversification, technology portfolio properties, and R&D productivity," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2074-2105, December.
    12. Kim, Jungho & Lee, Chang-Yang & Cho, Yunok, 2016. "Technological diversification, core-technology competence, and firm growth," Research Policy, Elsevier, vol. 45(1), pages 113-124.
    13. Orsatti, Gianluca & Quatraro, Francesco & Pezzoni, Michele, 2020. "The antecedents of green technologies: The role of team-level recombinant capabilities," Research Policy, Elsevier, vol. 49(3).
    14. Carlo Corradini & Pelin Demirel & Giuliana Battisti, 2016. "Technological diversification within UK’s small serial innovators," Small Business Economics, Springer, vol. 47(1), pages 163-177, June.
    15. Wonchang Hur & Jaeho Park, 2016. "Network Patterns of Inventor Collaboration and Their Effects on Innovation Outputs," Sustainability, MDPI, vol. 8(4), pages 1-25, March.
    16. Thomas Bolli & Martin Woerter, 2013. "Technological Diversification and Innovation Performance," KOF Working papers 13-336, KOF Swiss Economic Institute, ETH Zurich.
    17. Battke, Benedikt & Schmidt, Tobias S. & Stollenwerk, Stephan & Hoffmann, Volker H., 2016. "Internal or external spillovers—Which kind of knowledge is more likely to flow within or across technologies," Research Policy, Elsevier, vol. 45(1), pages 27-41.
    18. Turanay Caner & Susan K. Cohen & Frits Pil, 2017. "Firm heterogeneity in complex problem solving: A knowledge-based look at invention," Strategic Management Journal, Wiley Blackwell, vol. 38(9), pages 1791-1811, September.
    19. Lichtenthaler, Ulrich, 2010. "Determinants of proactive and reactive technology licensing: A contingency perspective," Research Policy, Elsevier, vol. 39(1), pages 55-66, February.
    20. Lin, Chinho & Chang, Chia-Chi, 2015. "The effect of technological diversification on organizational performance: An empirical study of S&P 500 manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 90(PB), pages 575-586.
    21. Atul Nerkar, 2003. "Old Is Gold? The Value of Temporal Exploration in the Creation of New Knowledge," Management Science, INFORMS, vol. 49(2), pages 211-229, February.

    More about this item

    Keywords

    Educational level diversity; Technological diversity; Absorptive capacity; Organizational demography;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jtecht:v:41:y:2016:i:2:d:10.1007_s10961-015-9413-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.