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How Do Firms Source External Knowledge for Innovation? Analyzing Effects of Different Knowledge Sourcing Methods

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  • Ki H. Kang

    ()

  • Jina Kang

    (Technology Management, Economics, and Policy Program (TEMEP); Seoul National University)

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    Abstract

    In the era of open innovation, external knowledge is a very important source for technology innovation. In this paper, we investigate the relationship between external knowledge and performance of technology innovation. The effect of external knowledge on the performance of technology innovation can vary with different external knowledge sourcing methods. We identify three ways of external knowledge sourcing: information transfer from informal network, R&D collaboration, and technology acquisition. We propose three hypotheses to examine relationship between the three methods of external knowledge sourcing and the technology innovation performance. Our results show that information transfer from informal network and technology acquisition have positive relationships with the technology innovation performance. R&D collaboration, however, has an inverted-U shape relationship with technology innovation performance. This implies that the effect of external knowledge on technology innovation varies depending on the particular external knowledge sourcing method. This research has important implication for firms in selecting appropriate strategy for accessing external knowledge.

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    Bibliographic Info

    Paper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 200907.

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    Length: 22 pages
    Date of creation: Aug 2009
    Date of revision: Aug 2009
    Handle: RePEc:snv:dp2009:200907

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    Keywords: External knowledge; open innovation; knowledge sourcing method; technology innovation.;

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    References

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    1. Granstrand, Ove & Sjolander, Soren, 1990. "The acquisition of technology and small firms by large firms," Journal of Economic Behavior & Organization, Elsevier, vol. 13(3), pages 367-386, June.
    2. Rothwell, R. & Freeman, C. & Horlsey, A. & Jervis, V. T. P. & Robertson, A. B. & Townsend, J., 1974. "SAPPHO updated - project SAPPHO phase II," Research Policy, Elsevier, vol. 3(3), pages 258-291, November.
    3. Rothwell, R. & Freeman, C. & Horsley, A. & Jervis, V. T. P. & Robertson, A. B. & Townsend, J., 1993. "SAPPHO updated -- project SAPPHO phase II," Research Policy, Elsevier, vol. 22(2), pages 110-110, April.
    4. Andreas Pyka & Uwe Cantner, 1999. "Informal Networking and Industrial Life Cycles," Discussion Paper Series 181, Universitaet Augsburg, Institute for Economics.
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    Cited by:
    1. Tsai-Ju Liao & Chwo-Ming Yu, 2013. "The impact of local linkages, international linkages, and absorptive capacity on innovation for foreign firms operating in an emerging economy," The Journal of Technology Transfer, Springer, vol. 38(6), pages 809-827, December.
    2. Ki H. Kang & Jina Kang, 2009. "Do External Knowledge Sourcing Methods Matter in Service Innovation? Analysis of South Korean Service Firms," TEMEP Discussion Papers 200908, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2009.

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