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Firm Capabilities, Technological Dynamism and Innovation Internationalisation – a Behavioural Approach

Author

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  • Schubert, Torben

    (CIRCLE, Lund University)

  • Baier, Elisabeth

    (HWTK, Baden-Baden)

  • Rammer, Christian

    (ZEW, Mannheim)

Abstract

We develop a behavioural framework of bounded rational decision-making under uncertainty by which we analyse the effect of technological dynamism in the firm’s environment on its decisions to internationalise innovation. Arguing that the firm’s technological performance lev-el affects its risk-preferences, a key-prediction is that firms with low technological compe-tences will internationalise innovation when faced by technological uncertainty while firms with high competences will withdraw from international innovation. A fully rational absorptive-capacity framework would predict the opposite relationship because it ignores the role of dif-ferential risk-preferences. We test our framework using data from the German Community Innovation Survey (CIS).

Suggested Citation

  • Schubert, Torben & Baier, Elisabeth & Rammer, Christian, 2017. "Firm Capabilities, Technological Dynamism and Innovation Internationalisation – a Behavioural Approach," Papers in Innovation Studies 2017/13, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2017_013
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    References listed on IDEAS

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    2. Schubert, Torben & Tavassoli, Sam, 2019. "Product Innovation and Educational Diversity in Top and Middle Management Teams," Papers in Innovation Studies 2019/3, Lund University, CIRCLE - Centre for Innovation Research.

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    More about this item

    Keywords

    innovation internationalisation; speed of technological change; bounded rationality; prospect theory; uncertainty; technological capabilities;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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