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Balancing exploration and exploitation in inventions: Quality of inventions and team composition

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  • Wang, Pengfei
  • Van De Vrande, Vareska
  • Jansen, Justin J.P.

Abstract

Building upon the exploration and exploitation framework, this study investigates the antecedents and consequences of inventions that balance new and existing knowledge. Using patent data from the semiconductor industry, this paper evaluates the quality of inventions that involve different levels of exploration. It finds that balanced inventions that combine a firm’s existing knowledge with new knowledge are of higher quality than inventions that are either over-exploratory or over-exploitative. Furthermore, this study investigates how teams can be composed to create balanced inventions. Results show that teams of a moderate size and with a moderate level of invention experience (both general and specific) are more likely to create inventions that balance exploration and exploitation.

Suggested Citation

  • Wang, Pengfei & Van De Vrande, Vareska & Jansen, Justin J.P., 2017. "Balancing exploration and exploitation in inventions: Quality of inventions and team composition," Research Policy, Elsevier, vol. 46(10), pages 1836-1850.
    • Handle: RePEc:eee:respol:v:46:y:2017:i:10:p:1836-1850
    DOI: 10.1016/j.respol.2017.09.002
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    5. Saehwa Hong & Hyung-Deok Shin, 2021. "Organizational slack and innovativeness: the moderating role of institutional transition in the Asian financial crisis," Asian Business & Management, Palgrave Macmillan, vol. 20(3), pages 370-389, July.
    6. Matthews, Lane & Heyden, Mariano L.M. & Zhou, Dan, 2022. "Paradoxical transparency? Capital market responses to exploration and exploitation disclosure," Research Policy, Elsevier, vol. 51(1).
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