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Radical Innovations: The Role of Knowledge Acquisition from Abroad

Author

Listed:
  • Damián Tojeiro-Rivero

    (University of Barcelona)

  • Rosina Moreno

    (University of Barcelona)

  • Erika Raquel Badillo

    (Universidad Autónoma Latinoamericana (Unaula))

Abstract

This paper explores R&D offshoring’s role in radical product innovations. These innovations are important for companies’ growth strategies, and we check the extent to which companies rely on external sources, which may bring knowledge that differs significantly from that already present internally. The evidence for Spanish firms between 2004 and 2013 shows that R&D offshoring influences significantly the intensity of radical but not of incremental innovations. This influence is apparently smaller when external knowledge comes from universities or research institutions rather than from the business sector. The recent financial crisis also exerted a detrimental effect on this influence, as compared with the previous period of economic growth.

Suggested Citation

  • Damián Tojeiro-Rivero & Rosina Moreno & Erika Raquel Badillo, 2019. "Radical Innovations: The Role of Knowledge Acquisition from Abroad," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(2), pages 173-207, September.
    • Handle: RePEc:kap:revind:v:55:y:2019:i:2:d:10.1007_s11151-018-9659-3
    DOI: 10.1007/s11151-018-9659-3
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    Cited by:

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    2. Alex J. Guerrero & Joost Heijs & Elena Huergo, 2023. "The effect of technological relatedness on firm sales evolution through external knowledge sourcing," The Journal of Technology Transfer, Springer, vol. 48(2), pages 476-514, April.

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