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Modes of inbound knowledge flows: are cooperation and outsourcing really complementary?

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  • Elena M. Gimenez-Fernandez
  • Francesco D. Sandulli

Abstract

This study examines the relationship between breadths of two different modes of external knowledge: R&D outsourcing and cooperation. Building upon transaction costs literature and literature on research partner breadth and R&D outsourcing, we hypothesise an U-inverted relationship between outsourcing breadth and innovation performance and a complementary relationship between R&D outsourcing and R&D cooperation. The model is tested on a large sample based on CIS survey for Spain. The empirical analysis confirms the U-inverted relationship between outsourcing breadth and innovation and also reveals an interesting result: the complementary effect of R&D cooperation varies with the level of R&D outsourcing breadth and it is not confirmed for low and medium levels of R&D outsourcing breadth. The results have important implications for theory on the selection of different modes of inbound open innovation and for managers and their cooperation and outsourcing strategies.

Suggested Citation

  • Elena M. Gimenez-Fernandez & Francesco D. Sandulli, 2017. "Modes of inbound knowledge flows: are cooperation and outsourcing really complementary?," Industry and Innovation, Taylor & Francis Journals, vol. 24(8), pages 795-816, November.
    • Handle: RePEc:taf:indinn:v:24:y:2017:i:8:p:795-816
    DOI: 10.1080/13662716.2016.1266928
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    References listed on IDEAS

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    1. Cassiman, Bruno & Veugelers, Reinhilde, 2002. "Complementarity in the innovation strategy: Internal R&D, external technology acquisition, and cooperation in R&D," IESE Research Papers D/457, IESE Business School.
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    1. Carmona-Lavado, Antonio & Cuevas-Rodríguez, Gloria & Cabello-Medina, Carmen & Fedriani, Eugenio M., 2021. "Does open innovation always work? The role of complementary assets," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    2. González-Moreno, Ángela & Triguero, Ángela & Sáez-Martínez, Francisco José, 2019. "Many or trusted partners for eco-innovation? The influence of breadth and depth of firms' knowledge network in the food sector," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 51-62.
    3. Antonia Madrid-Guijarro & Dominique Philippe Martin & Domingo García-Pérez-de-Lema, 2021. "Capacity of open innovation activities in fostering product and process innovation in manufacturing SMEs," Review of Managerial Science, Springer, vol. 15(7), pages 2137-2164, October.
    4. Gimenez-Fernandez, Elena M. & Sandulli, Francesco D. & Bogers, Marcel, 2020. "Unpacking liabilities of newness and smallness in innovative start-ups: Investigating the differences in innovation performance between new and older small firms," Research Policy, Elsevier, vol. 49(10).

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