IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v45y2016i1p345-359.html

Inventing while you work: Knowledge, non-R&D learning and innovation

Author

Listed:
  • Lee, You-Na
  • Walsh, John P.

Abstract

“Intuition, judgment, creativity are basically expressions of capabilities for recognition and response based upon experience and knowledge (p. 128–129)” (Simon, 1997). Workers gain experience and knowledge in the course of their normal jobs. Therefore, innovative ideas can be generated from knowledge built from learning opportunities across the firm (not just the R&D lab). Employees working for different functions (R&D and outside of R&D) in an organization have different work practices and build their learning through different processes. Moreover, the relative effectiveness of learning by different work practices for innovation is contingent on the nature of knowledge, characterized by generality (i.e., high mobility/transferability) and visibility (i.e., tighter links between actions and outcomes). Using multiple datasets combining public and private data and focusing on births of innovations, this study shows how the nature of knowledge affects differences in the innovation productivity of R&D and non-R&D work. The paper concludes with a discussion of the implications of these insights for innovation management and policy.

Suggested Citation

  • Lee, You-Na & Walsh, John P., 2016. "Inventing while you work: Knowledge, non-R&D learning and innovation," Research Policy, Elsevier, vol. 45(1), pages 345-359.
  • Handle: RePEc:eee:respol:v:45:y:2016:i:1:p:345-359
    DOI: 10.1016/j.respol.2015.09.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S004873331500147X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.respol.2015.09.009?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Joshua Lerner, 1994. "The Importance of Patent Scope: An Empirical Analysis," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 319-333, Summer.
    2. Malerba, Franco, 1992. "Learning by Firms and Incremental Technical Change," Economic Journal, Royal Economic Society, vol. 102(413), pages 845-859, July.
    3. Heidenreich, Martin, 2009. "Innovation patterns and location of European low- and medium-technology industries," Research Policy, Elsevier, vol. 38(3), pages 483-494, April.
    4. Jensen, Morten Berg & Johnson, Bjorn & Lorenz, Edward & Lundvall, Bengt Ake, 2007. "Forms of knowledge and modes of innovation," Research Policy, Elsevier, vol. 36(5), pages 680-693, June.
    5. Alvaro Cuervo‐Cazurra & C. Annique Un, 2010. "Why some firms never invest in formal R&D," Strategic Management Journal, Wiley Blackwell, vol. 31(7), pages 759-779, July.
    6. Peter Thompson, 2012. "The Relationship between Unit Cost and Cumulative Quantity and the Evidence for Organizational Learning-by-Doing," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 203-224, Summer.
    7. Arora, Ashish & Cohen, Wesley M. & Walsh, John P., 2016. "The acquisition and commercialization of invention in American manufacturing: Incidence and impact," Research Policy, Elsevier, vol. 45(6), pages 1113-1128.
    8. Joskow, Paul L & Rozanski, George A, 1979. "The Effects of Learning by Doing on Nuclear Plant Operating Reliability," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 161-168, May.
    9. Paul S. Adler & Kim B. Clark, 1991. "Behind the Learning Curve: A Sketch of the Learning Process," Management Science, INFORMS, vol. 37(3), pages 267-281, March.
    10. Rosenberg, Nathan, 1976. "On Technological Expectations," Economic Journal, Royal Economic Society, vol. 86(343), pages 523-535, September.
    11. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
    12. Robert M. Solow, 1994. "Perspectives on Growth Theory," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 45-54, Winter.
    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. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    15. Bengt-ake Lundvall & Bjorn Johnson, 1994. "The Learning Economy," Industry and Innovation, Taylor & Francis Journals, vol. 1(2), pages 23-42.
    16. Eric D. Darr & Linda Argote & Dennis Epple, 1995. "The Acquisition, Transfer, and Depreciation of Knowledge in Service Organizations: Productivity in Franchises," Management Science, INFORMS, vol. 41(11), pages 1750-1762, November.
    17. C. Lanier Benkard, 2000. "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic Review, American Economic Association, vol. 90(4), pages 1034-1054, September.
    18. Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-951, July.
    19. Nile W. Hatch & David C. Mowery, 1998. "Process Innovation and Learning by Doing in Semiconductor Manufacturing," Management Science, INFORMS, vol. 44(11-Part-1), pages 1461-1477, November.
    20. 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.
    21. Gavin Sinclair & Steven Klepper & Wesley Cohen, 2000. "What's Experience Got to Do With It? Sources of Cost Reduction in a Large Specialty Chemicals Producer," Management Science, INFORMS, vol. 46(1), pages 28-45, January.
    22. Cockburn, Iain & Griliches, Zvi, 1988. "Industry Effects and Appropriability Measures in the Stock Market's Valuation of R&D and Patents," American Economic Review, American Economic Association, vol. 78(2), pages 419-423, May.
    23. Wakelin, Katharine, 2001. "Productivity growth and R&D expenditure in UK manufacturing firms," Research Policy, Elsevier, vol. 30(7), pages 1079-1090, August.
    24. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-243, May.
    25. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    26. Nelson, Richard R, 1981. "Research on Productivity Growth and Productivity Differences: Dead Ends and New Departures," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 1029-1064, September.
    Full references (including those not matched with items on IDEAS)

    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. Nanditha Mathew & George Paily, 2022. "STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?," The Journal of Technology Transfer, Springer, vol. 47(2), pages 435-458, April.
    2. Funk, Jeffrey L. & Magee, Christopher L., 2015. "Rapid improvements with no commercial production: How do the improvements occur?," Research Policy, Elsevier, vol. 44(3), pages 777-788.
    3. José Albors-Garrigos & José L. Hervas-Oliver, 2011. "Making sense of innovation by R&D and non-R&D innovators in low technology contexts: a forgotten lesson for policymakers," Working Papers. Serie EC 2011-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. Ivan Lugovoi & Dimitrios A. Andritsos & Claire Senot, 2022. "Novelty and scope of process innovation: The role of related and unrelated manufacturing experience," Production and Operations Management, Production and Operations Management Society, vol. 31(10), pages 3877-3895, October.
    5. Gabriele Pellegrino & Mariacristina Piva & Marco Vivarelli, 2015. "How do new entrepreneurs innovate?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 323-341, September.
    6. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    7. Wesley M. Cohen & You-Na Lee & John P. Walsh, 2019. "How Innovative Are Innovations? A Multidimensional, Survey-Based Approach," NBER Chapters, in: Measuring and Accounting for Innovation in the Twenty-First Century, pages 139-182, National Bureau of Economic Research, Inc.
    8. 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.
    9. Tat Y. Chan & Jia Li & Lamar Pierce, 2014. "Learning from Peers: Knowledge Transfer and Sales Force Productivity Growth," Marketing Science, INFORMS, vol. 33(4), pages 463-484, July.
    10. Mathew, Nanditha & Paily, George, 2020. "STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?," MERIT Working Papers 2020-008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Olof Ejermo & Karin Bergman, 2014. "Services vs. Manufacturing – How Does Foreign and Domestic Sales Impact on Their R&D?," Journal of Industry, Competition and Trade, Springer, vol. 14(3), pages 367-391, September.
    12. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    13. Piotr Dzikowski, 2022. "Product and process innovation patterns in Polish low and high technology systems," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(3), pages 747-773, September.
    14. Hakan Ozalp & J.P. Eggers & Franco Malerba, 2023. "Hitting reset: Industry evolution, generational technology cycles, and the dynamic value of firm experience," Strategic Management Journal, Wiley Blackwell, vol. 44(5), pages 1292-1327, May.
    15. Pellegrino, Gabriele & Piva, Mariacristina & Vivarelli, Marco, 2012. "Young firms and innovation: A microeconometric analysis," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 329-340.
    16. Montresor, Sandro & Vezzani, Antonio, 2015. "The production function of top R&D investors: Accounting for size and sector heterogeneity with quantile estimations," Research Policy, Elsevier, vol. 44(2), pages 381-393.
    17. Alp Eren Yurtseven & Mehmet Teoman Pamukçu, 2022. "Innovation patterns in firms and intra-industry heterogeneity empirical evidence from Turkey," Evolutionary and Institutional Economics Review, Springer, vol. 19(2), pages 645-679, September.
    18. Regis, Paulo José & Desmarchelier, Benoît, 2018. "Innovation and Productivity in the service sector of emerging and developing countries," RIEI Working Papers 2018-01, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    19. Cefis, Elena & Marsili, Orietta, 2012. "Going, going, gone. Exit forms and the innovative capabilities of firms," Research Policy, Elsevier, vol. 41(5), pages 795-807.
    20. Nadeau, Marie-Claude & Kar, Ashish & Roth, Richard & Kirchain, Randolph, 2010. "A dynamic process-based cost modeling approach to understand learning effects in manufacturing," International Journal of Production Economics, Elsevier, vol. 128(1), pages 223-234, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:eee:respol:v:45:y:2016:i:1:p:345-359. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    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.