IDEAS home Printed from https://ideas.repec.org/a/eee/techno/v107y2021ics0166497221000912.html
   My bibliography  Save this article

University alliances and firm exploratory innovation: Evidence from therapeutic product development

Author

Listed:
  • Slavova, Kremena
  • Jong, Simcha

Abstract

This paper investigates the relationship between university alliances and firm exploratory innovation in the context of therapeutic product development. We build on organizational learning theory to elucidate that the use of university alliances is more positively associated with firm exploratory rather than exploitative innovation output. Moreover, we argue that the breadth of a firm's technological expertise strengthens the benefits of university alliances in the development of exploratory innovation output. Our empirical analysis is based on a panel dataset of 220 US therapeutic biotechnology firms from 2003 to 2010. Our findings support the contention that university alliances are differentially related to exploratory and exploitative innovation outcomes, and further indicate that firm technological breadth positively moderates the relationship between university alliances and firm exploratory innovation.

Suggested Citation

  • Slavova, Kremena & Jong, Simcha, 2021. "University alliances and firm exploratory innovation: Evidence from therapeutic product development," Technovation, Elsevier, vol. 107(C).
    • Handle: RePEc:eee:techno:v:107:y:2021:i:c:s0166497221000912
    DOI: 10.1016/j.technovation.2021.102310
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166497221000912
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.technovation.2021.102310?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Paul E. Bierly & Fariborz Damanpour & Michael D. Santoro, 2009. "The Application of External Knowledge: Organizational Conditions for Exploration and Exploitation," Journal of Management Studies, Wiley Blackwell, vol. 46(3), pages 481-509, May.
    2. Guan, Jiancheng & Liu, Na, 2016. "Exploitative and exploratory innovations in knowledge network and collaboration network: A patent analysis in the technological field of nano-energy," Research Policy, Elsevier, vol. 45(1), pages 97-112.
    3. Lori Rosenkopf & Paul Almeida, 2003. "Overcoming Local Search Through Alliances and Mobility," Management Science, INFORMS, vol. 49(6), pages 751-766, June.
    4. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    5. Robert M. Grant & Charles Baden‐Fuller, 2004. "A Knowledge Accessing Theory of Strategic Alliances," Journal of Management Studies, Wiley Blackwell, vol. 41(1), pages 61-84, January.
    6. Lori Rosenkopf & Atul Nerkar, 2001. "Beyond local search: boundary‐spanning, exploration, and impact in the optical disk industry," Strategic Management Journal, Wiley Blackwell, vol. 22(4), pages 287-306, April.
    7. Jeff S. Armstrong & Michael R. Darby & Lynne G. Zucker, 2003. "Commercializing knowledge: university science, knowledge capture and firm performance in biotechnology," Proceedings, Federal Reserve Bank of Dallas, issue Sep, pages 149-170.
    8. Köhler, Christian & Sofka, Wolfgang & Grimpe, Christoph, 2012. "Selective search, sectoral patterns, and the impact on product innovation performance," Research Policy, Elsevier, vol. 41(8), pages 1344-1356.
    9. Vikas A. Aggarwal & David H. Hsu, 2014. "Entrepreneurial Exits and Innovation," Management Science, INFORMS, vol. 60(4), pages 867-887, April.
    10. M. Lourdes Sosa, 2011. "From Old Competence Destruction to New Competence Access: Evidence from the Comparison of Two Discontinuities in Anticancer Drug Discovery," Organization Science, INFORMS, vol. 22(6), pages 1500-1516, December.
    11. Fabrizio, Kira R., 2009. "Absorptive capacity and the search for innovation," Research Policy, Elsevier, vol. 38(2), pages 255-267, March.
    12. Bercovitz, Janet E.L. & Feldman, Maryann P., 2007. "Fishing upstream: Firm innovation strategy and university research alliances," Research Policy, Elsevier, vol. 36(7), pages 930-948, September.
    13. Simeth, Markus & Raffo, Julio D., 2013. "What makes companies pursue an Open Science strategy?," Research Policy, Elsevier, vol. 42(9), pages 1531-1543.
    14. Gautam Ahuja & Curba Morris Lampert, 2001. "Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 521-543, June.
    15. Veugelers, Reinhilde & Cassiman, Bruno, 2005. "R&D cooperation between firms and universities. Some empirical evidence from Belgian manufacturing," International Journal of Industrial Organization, Elsevier, vol. 23(5-6), pages 355-379, June.
    16. Bruno Cassiman & Reinhilde Veugelers & Pluvia Zuniga, 2008. "In search of performance effects of (in)direct industry science links," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(4), pages 611-646, August.
    17. Gerard George & Reddi Kotha & Yanfeng Zheng, 2008. "Entry into Insular Domains: A Longitudinal Study of Knowledge Structuration and Innovation in Biotechnology Firms," Journal of Management Studies, Wiley Blackwell, vol. 45(8), pages 1448-1474, December.
    18. Du, Jingshu & Leten, Bart & Vanhaverbeke, Wim, 2014. "Managing open innovation projects with science-based and market-based partners," Research Policy, Elsevier, vol. 43(5), pages 828-840.
    19. Gilsing, Victor & Nooteboom, Bart & Vanhaverbeke, Wim & Duysters, Geert & van den Oord, Ad, 2008. "Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density," Research Policy, Elsevier, vol. 37(10), pages 1717-1731, December.
    20. Jue Wang & Philip Shapira, 2012. "Partnering with universities: a good choice for nanotechnology start-up firms?," Small Business Economics, Springer, vol. 38(2), pages 197-215, February.
    21. Bruneel, Johan & D'Este, Pablo & Salter, Ammon, 2010. "Investigating the factors that diminish the barriers to university-industry collaboration," Research Policy, Elsevier, vol. 39(7), pages 858-868, September.
    22. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    23. Dushnitsky, Gary & Lenox, Michael J., 2005. "When do incumbents learn from entrepreneurial ventures?: Corporate venture capital and investing firm innovation rates," Research Policy, Elsevier, vol. 34(5), pages 615-639, June.
    24. Rebecca R. Kehoe & Daniel Tzabbar, 2015. "Lighting the way or stealing the shine? An examination of the duality in star scientists' effects on firm innovative performance," Strategic Management Journal, Wiley Blackwell, vol. 36(5), pages 709-727, May.
    25. Alexander S. Alexiev & Justin J. P. Jansen & Frans A. J. Van den Bosch & Henk W. Volberda, 2010. "Top Management Team Advice Seeking and Exploratory Innovation: The Moderating Role of TMT Heterogeneity," Journal of Management Studies, Wiley Blackwell, vol. 47(7), pages 1343-1364, November.
    26. Walsh, John P. & Lee, You-Na & Nagaoka, Sadao, 2016. "Openness and innovation in the US: Collaboration form, idea generation and implementation," Research Policy, Elsevier, vol. 45(8), pages 1660-1671.
    27. Wirsich, Alexander & Kock, Alexander & Strumann, Christoph & Schultz, Carsten, 2016. "Effects of University Industry Collaboration on Technological Newness," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 85098, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    28. Lee Fleming & Olav Sorenson, 2004. "Science as a map in technological search," Strategic Management Journal, Wiley Blackwell, vol. 25(8‐9), pages 909-928, August.
    29. Zhang, Jing & Baden-Fuller, Charles & Mangematin, Vincent, 2007. "Technological knowledge base, R&D organization structure and alliance formation: Evidence from the biopharmaceutical industry," Research Policy, Elsevier, vol. 36(4), pages 515-528, May.
    30. Soh, Pek-Hooi & Subramanian, Annapoornima M., 2014. "When do firms benefit from university–industry R&D collaborations? The implications of firm R&D focus on scientific research and technological recombination," Journal of Business Venturing, Elsevier, vol. 29(6), pages 807-821.
    31. Denisa Mindruta, 2013. "Value creation in university-firm research collaborations: A matching approach," Post-Print hal-00818682, HAL.
    32. McMillan, G. Steven & Narin, Francis & Deeds, David L., 2000. "An analysis of the critical role of public science in innovation: the case of biotechnology," Research Policy, Elsevier, vol. 29(1), pages 1-8, January.
    33. Partha, Dasgupta & David, Paul A., 1994. "Toward a new economics of science," Research Policy, Elsevier, vol. 23(5), pages 487-521, September.
    34. Michelle Gittelman, 2007. "Does Geography Matter for Science-Based Firms? Epistemic Communities and the Geography of Research and Patenting in Biotechnology," Organization Science, INFORMS, vol. 18(4), pages 724-741, August.
    35. Jing Zhang & Charles Baden‐Fuller, 2010. "The Influence of Technological Knowledge Base and Organizational Structure on Technology Collaboration," Journal of Management Studies, Wiley Blackwell, vol. 47(4), pages 679-704, June.
    36. Cui, Victor & Ding, Waverly W. & Yanadori, Yoshio, 2019. "Exploration versus exploitation in technology firms: The role of compensation structure for R&D workforce," Research Policy, Elsevier, vol. 48(6), pages 1534-1549.
    37. Jing Zhang & Charles Baden-Fuller & Vincent Mangematin, 2007. "Technological Knowledge Base, R&D Organization Structure and Alliance Formation: Evidence from the Biopharmaceutical Industry," Post-Print hal-00424512, HAL.
    38. Johan Bruneel & Pablo D’Este & Ammon Salter, 2016. "The impact of financial slack on explorative and exploitative knowledge sourcing from universities: evidence from the UK," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(4), pages 689-706.
    39. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    40. Denisa Mindruta, 2013. "Value creation in university-firm research collaborations: A matching approach," Strategic Management Journal, Wiley Blackwell, vol. 34(6), pages 644-665, June.
    41. Corey C. Phelps, 2010. "A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation," Post-Print hal-00528392, HAL.
    42. Julia Porter Liebeskind & Amalya Lumerman Oliver & Lynne Zucker & Marilynn Brewer, 1996. "Social networks, Learning, and Flexibility: Sourcing Scientific Knowledge in New Biotechnology Firms," Organization Science, INFORMS, vol. 7(4), pages 428-443, August.
    43. Hsini Huang & Simcha Jong, 2019. "Public Funding for Science and the Value of Corporate R&D Projects; Evidence from Project Initiation and Termination Decisions in Cell Therapy," Journal of Management Studies, Wiley Blackwell, vol. 56(5), pages 1000-1039, July.
    44. Sam Arts & Lee Fleming, 2018. "Paradise of Novelty—Or Loss of Human Capital? Exploring New Fields and Inventive Output," Organization Science, INFORMS, vol. 29(6), pages 1074-1092, December.
    45. repec:wip:wpaper:6 is not listed on IDEAS
    46. Frank T. Rothaermel & David L. Deeds, 2004. "Exploration and exploitation alliances in biotechnology: a system of new product development," Strategic Management Journal, Wiley Blackwell, vol. 25(3), pages 201-221, March.
    47. Stuart, Toby E. & Ozdemir, Salih Zeki & Ding, Waverly W., 2007. "Vertical alliance networks: The case of university-biotechnology-pharmaceutical alliance chains," Research Policy, Elsevier, vol. 36(4), pages 477-498, May.
    48. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    49. Ha Hoang & Frank T. Rothaermel, 2010. "Leveraging internal and external experience: exploration, exploitation, and R&D project performance," Strategic Management Journal, Wiley Blackwell, vol. 31(7), pages 734-758, July.
    50. Melissa A. Schilling, 2009. "Understanding the alliance data," Strategic Management Journal, Wiley Blackwell, vol. 30(3), pages 233-260, March.
    51. George, Gerard & Zahra, Shaker A. & Wood, D. Jr., 2002. "The effects of business-university alliances on innovative output and financial performance: a study of publicly traded biotechnology companies," Journal of Business Venturing, Elsevier, vol. 17(6), pages 577-609, October.
    52. Deeds, David L. & Decarolis, DONA & Coombs, Joseph, 2000. "Dynamic capabilities and new product development in high technology ventures: An empirical analysis of new biotechnology firms," Journal of Business Venturing, Elsevier, vol. 15(3), pages 211-229, May.
    53. Simcha Jong, 2006. "How organizational structures in science shape spin-off firms: the biochemistry departments of Berkeley, Stanford, and UCSF and the birth of the biotech industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 15(2), pages 251-283, April.
    54. Sai Yayavaram & Wei-Ru Chen, 2015. "Changes in firm knowledge couplings and firm innovation performance: The moderating role of technological complexity," Strategic Management Journal, Wiley Blackwell, vol. 36(3), pages 377-396, March.
    55. Banerjee, Tannista & Siebert, Ralph, 2017. "Dynamic impact of uncertainty on R&D cooperation formation and research performance: Evidence from the bio-pharmaceutical industry," Research Policy, Elsevier, vol. 46(7), pages 1255-1271.
    56. Ashish Arora & Sharon Belenzon & Andrea Patacconi, 2018. "The decline of science in corporate R&D," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 3-32, January.
    57. Glenn Hoetker, 2007. "The use of logit and probit models in strategic management research: Critical issues," Strategic Management Journal, Wiley Blackwell, vol. 28(4), pages 331-343, April.
    58. Lee Fleming, 2001. "Recombinant Uncertainty in Technological Search," Management Science, INFORMS, vol. 47(1), pages 117-132, January.
    59. Jong, Simcha & Slavova, Kremena, 2014. "When publications lead to products: The open science conundrum in new product development," Research Policy, Elsevier, vol. 43(4), pages 645-654.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rajeev K. Goel, 2023. "Seek foreign funds or technology? Relative impacts of different spillover modes on innovation," The Journal of Technology Transfer, Springer, vol. 48(4), pages 1466-1488, August.
    2. Chen, Xi & Mao, Jin & Ma, Yaxue & Li, Gang, 2024. "The knowledge linkage between science and technology influences corporate technological innovation: Evidence from scientific publications and patents," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    3. Slavova, Kremena, 2023. "In-licensing university technology and firm innovation," Technovation, Elsevier, vol. 125(C).
    4. Concepta McManus & Abilio Afonso Baeta Neves & Alvaro Toubes Prata, 2021. "Scientific publications from non-academic sectors and their impact," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(11), pages 8887-8911, November.
    5. Jiang, Zihao & Shi, Jiarong, 2023. "Government intervention and technological innovation in the wind power industry in China: The role of industrial environmental turbulence," Applied Energy, Elsevier, vol. 344(C).
    6. Jiang, Zihao & Liu, Zhiying, 2022. "Policies and exploitative and exploratory innovations of the wind power industry in China: The role of technological path dependence," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    7. Zhao, Shengchao & Zeng, Deming & Li, Jian & Feng, Ke & Wang, Yao, 2023. "Quantity or quality: The roles of technology and science convergence on firm innovation performance," Technovation, Elsevier, vol. 126(C).

    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. Jong, Simcha & Slavova, Kremena, 2014. "When publications lead to products: The open science conundrum in new product development," Research Policy, Elsevier, vol. 43(4), pages 645-654.
    2. Hohberger, Jan & Almeida, Paul & Parada, Pedro, 2015. "The direction of firm innovation: The contrasting roles of strategic alliances and individual scientific collaborations," Research Policy, Elsevier, vol. 44(8), pages 1473-1487.
    3. Soh, Pek-Hooi & Subramanian, Annapoornima M., 2014. "When do firms benefit from university–industry R&D collaborations? The implications of firm R&D focus on scientific research and technological recombination," Journal of Business Venturing, Elsevier, vol. 29(6), pages 807-821.
    4. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    5. Slavova, Kremena, 2023. "In-licensing university technology and firm innovation," Technovation, Elsevier, vol. 125(C).
    6. Russo, Angeloantonio & Vurro, Clodia & Nag, Rajiv, 2019. "To have or to be? The interplay between knowledge structure and market identity in knowledge-based alliance formation," Research Policy, Elsevier, vol. 48(3), pages 571-583.
    7. Leone, Maria Isabella & Messeni Petruzzelli, Antonio & Natalicchio, Angelo, 2022. "Boundary spanning through external technology acquisition: The moderating role of star scientists and upstream alliances," Technovation, Elsevier, vol. 116(C).
    8. Bae, Joonhyung & Ozmel, Umit, 2024. "The interplay between product development failures and alliance portfolio properties in the formation of exploration versus exploitation alliances," Journal of Business Research, Elsevier, vol. 177(C).
    9. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    10. Kremena Slavova & Andrea Fosfuri & Julio O. De Castro, 2016. "Learning by Hiring: The Effects of Scientists’ Inbound Mobility on Research Performance in Academia," Organization Science, INFORMS, vol. 27(1), pages 72-89, February.
    11. Hugo Ernesto Martínez Ardila & Julián Eduardo Mora Moreno & Jaime Alberto Camacho Pico, 2020. "Networks of collaborative alliances: the second order interfirm technological distance and innovation performance," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1255-1282, August.
    12. Rene Belderbos & Victor Gilsing & Shinya Suzuki, 2015. "Direct and mediated ties to universities: ‘Scientific’ absorptive capacity and innovation performance of pharmaceutical firms," Working Papers of Department of Management, Strategy and Innovation, Leuven 504836, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    13. Rajat Khanna & Isin Guler, 2022. "Degree assortativity in collaboration networks and invention performance," Strategic Management Journal, Wiley Blackwell, vol. 43(7), pages 1402-1430, July.
    14. repec:pab:wpbsad:16.01 is not listed on IDEAS
    15. Zakaryan, Arusyak, 2023. "Organizational knowledge networks, search and exploratory invention," Technovation, Elsevier, vol. 122(C).
    16. Ellen Enkel & Annika Groemminger & Sebastian Heil, 2018. "Managing technological distance in internal and external collaborations: absorptive capacity routines and social integration for innovation," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1257-1290, October.
    17. Xiao, Fenglong & Shen, Yinjie, 2024. "Wolves at the door to the unknown: Innovation search and hedge fund activism," Research Policy, Elsevier, vol. 53(2).
    18. Maureen McKelvey & Bastian Rake, 2020. "Exploring scientific publications by firms: what are the roles of academic and corporate partners for publications in high reputation or high impact journals?," Scientometrics, Springer;Akadémiai Kiadó, vol. 122(3), pages 1323-1360, March.
    19. Michalis E. Papazoglou, 2023. "Favorable strategies for the success of entry into new technological areas: an entrepreneurial perspective," International Entrepreneurship and Management Journal, Springer, vol. 19(1), pages 403-426, March.
    20. Lampert, Curba Morris & Kim, Minyoung, 2019. "Going far to go further: Offshoring, exploration, and R&D performance," Journal of Business Research, Elsevier, vol. 103(C), pages 376-386.
    21. Hohberger, Jan, 2016. "Diffusion of science-based inventions," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 66-77.

    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:techno:v:107:y:2021:i:c:s0166497221000912. 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.sciencedirect.com/science/journal/01664972 .

    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.