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Optimal cognitive distance and absorptive capacity

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Author Info
Nooteboom, Bart
Vanhaverbeke, Wim
Duysters, Geert
Gilsing, Victor
Oord, Ad van den (Tilburg University, Center for Economic Research)

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Abstract

In this paper we test the relation between cognitive distance and innovation performance of firms engaged in technology-based alliances. The key finding is that the hypothesis of an inverted U-shaped effect of cognitive distance on innovation performance of firms is confirmed. Moreover, as expected, we found that the positive effect for firms is much higher when engaging in more radical, exploratory alliances than in more exploitative alliances. The effect of cumulative RD turns out to be mixed. It may increase absorptive capacity, as expected, but there is clear evidence that it also reduces the effect of cognitive distance on novelty value.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 33.

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Date of creation: 2006
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Handle: RePEc:dgr:kubcen:200633

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Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

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  3. 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. [Downloadable!] (restricted)
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  6. Rebecca Henderson & Iain Cockburn, . "Scale, Scope and Spillovers: The Determinants of Research Productivity in Drug Discovery," Working Papers ec25/94, Department of Economics, University of Lancaster.
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  7. Zvi Griliches, 1979. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 92-116, Spring. [Downloadable!] (restricted)
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  8. Wuyts, Stefan & Colombo, Massimo G. & Dutta, Shantanu & Nooteboom, Bart, 2005. "Empirical tests of optimal cognitive distance," Discussion Paper 45, Tilburg University, Center for Economic Research. [Downloadable!]
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  9. Narin, Francis & Noma, Elliot & Perry, Ross, 1987. "Patents as indicators of corporate technological strength," Research Policy, Elsevier, vol. 16(2-4), pages 143-155, August. [Downloadable!] (restricted)
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  11. Cooper, Arnold C. & Schendel, Dan, 1976. "Strategic responses to technological threats," Business Horizons, Elsevier, vol. 19(1), pages 61-69, February. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Nooteboom, Bart, 2006. "Organization, evolution, cognition and dynamic capabilities," Discussion Paper 41, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  2. Thurik, Roy, 2009. "Entrepreneurship, Economic Growth and Policy in Emerging Economies," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  3. Max-Peter Menzel, 2008. "Dynamic Proximities – Changing Relations by Creating and Bridging Distances," Papers in Evolutionary Economic Geography (PEEG) 0816, Utrecht University, Section of Economic Geography, revised Oct 2008. [Downloadable!]
  4. Nooteboom, Bart, 2006. "Learning and innovation in inter-organizational relationships and networks," Discussion Paper 39, Tilburg University, Center for Economic Research. [Downloadable!]
  5. Sadowski, B.M. & Straathof, B., 2005. "VoIP under the EU Regulatory Framework: Preventing Foreclosure?," ECIS Working Papers 05.16, Eindhoven Centre for Innovation Studies, Eindhoven University of Technology. [Downloadable!]
  6. Rens L.J. Vandeberg & Ellen H.M. Moors, 2008. "A framework for interactive learning in emerging technologies," Innovation Studies Utrecht (ISU) working paper series 08-06, Utrecht University, Department of Innovation Studies, revised Feb 2008. [Downloadable!]
  7. Nooteboom, Bart, 2006. "Embodied cognition, organization and innovation," Discussion Paper 38, Tilburg University, Center for Economic Research. [Downloadable!]
  8. Nooteboom, Bart & Gilsing, Victor & Vanhaverbeke, Wim & Duysters, Geert & Oord, Ad van den, 2006. "Network embeddedness and the exploration of novel technologies : technological distance, betweenness centrality and density," Discussion Paper 32, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  9. Bart Nooteboom, 2008. "In what sense do firms evolve?," Papers on Economics and Evolution 2008-12, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
  10. Evert-Jan Visser & Oedzge Atzema, 2007. "Beyond clusters: Fostering innovation through a differentiated and combined network approach," Papers in Evolutionary Economic Geography (PEEG) 0705, Utrecht University, Section of Economic Geography, revised Jun 2007. [Downloadable!]
  11. Ron Boschma & Rikard Eriksson & Urban Lindgren, 2008. "Labour mobility, related variety and the performance of plants: A Swedish study," Papers in Evolutionary Economic Geography (PEEG) 0809, Utrecht University, Section of Economic Geography, revised May 2008. [Downloadable!]
  12. Nooteboom, B., 2007. "Cognitive Distance in and Between COP?s and Firms: Where do Exploitation and Exploration take Place, and How are they Connected?," Discussion Paper 2007-4, Tilburg University, Center for Economic Research. [Downloadable!]
  13. Moritz Müller & Robin COWAN & Geert Duysters & Nicolas JONARD, 2009. "Knowledge Structures," Working Papers of BETA 2009-24, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
  14. Antonelli Cristiano & Pierpaolo Patrucco & Quatraro Francesco, 2008. "The governance of localized knowledge externalities," Dipartimento di Economia "S. Cognetti de Martiis" LEI & BRICK - Laboratorio di economia dell'innovazione "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio Carlo 200801, University of Turin. [Downloadable!]
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