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External and Internal Knowledge in the Knowledge Generation Function

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  • Cristiano Antonelli
  • Alessandra Colombelli

Abstract

This paper explores the role of internal and external knowledge in the generation of new technological knowledge. It implements the notion of recombinant knowledge generation function with the appreciation of: (i) the complementary--as opposed to supplementary--role of external knowledge and (ii) the role of the size and composition of the internal stock of knowledge. The empirical section is based upon a panel of companies listed on the main European financial markets for the period 1995-2006. The econometric analysis is based on simultaneous equations. The results confirm that R&D efforts and external knowledge are indispensable inputs into the generation of new technological knowledge.

Suggested Citation

  • Cristiano Antonelli & Alessandra Colombelli, 2015. "External and Internal Knowledge in the Knowledge Generation Function," Industry and Innovation, Taylor & Francis Journals, vol. 22(4), pages 273-298, May.
    • Handle: RePEc:taf:indinn:v:22:y:2015:i:4:p:273-298
    DOI: 10.1080/13662716.2015.1049864
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    References listed on IDEAS

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    1. Conte, Andrea & Vivarelli, Marco, 2005. "One or Many Knowledge Production Functions? Mapping Innovative Activity Using Microdata," IZA Discussion Papers 1878, Institute of Labor Economics (IZA).
    2. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
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    Cited by:

    1. Li, Xiaolin & Zhang, Mengjie & Li, Weiwen & Chen, Juanyi, 2025. "Looking for new possibilities in emerging industries: The impact of strategic sensing capability on high-tech startups’ product innovation," Journal of Business Research, Elsevier, vol. 189(C).
    2. Cristiano Antonelli & Alessandra Colombelli, 2017. "The locus of knowledge externalities and the cost of knowledge," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1151-1164, August.
    3. Xu, Tao Louie & Liu, Li, 2025. "Endogenous Innovation in the Tech Cold War Era," MPRA Paper 126220, University Library of Munich, Germany.
    4. Cristiano Antonelli & Gianluigi Ferraris, 2018. "The creative response and the endogenous dynamics of pecuniary knowledge externalities: an agent based simulation model," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 13(3), pages 561-599, October.
    5. Cristiano Antonelli & Francesco Crespi & Christian A. Mongeau Ospina & Giuseppe Scellato, 2017. "Knowledge composition, Jacobs externalities and innovation performance in European regions," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1708-1720, November.
    6. Antonelli, Cristiano, 2017. "Digital knowledge generation and the appropriability trade-off," Telecommunications Policy, Elsevier, vol. 41(10), pages 991-1002.
    7. Müller, Aranja & Zaby, Alexandra K., 2019. "Research joint ventures and technological proximity," Research Policy, Elsevier, vol. 48(5), pages 1187-1200.
    8. Antonelli, Cristiano & David, Paul, 2015. "The Generation of Knowledge as an Emergent System Property: An Introduction," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201512, University of Turin.
    9. Hui Gao & Suming Wu, 2023. "The Influence of Ambidextrous Knowledge Search on Technological Innovation: The Mediating Role of Knowledge Base," SAGE Open, , vol. 13(4), pages 21582440231, December.
    10. Vestal, Alex & Danneels, Erwin, 2018. "Knowledge exchange in clusters: The contingent role of regional inventive concentration," Research Policy, Elsevier, vol. 47(10), pages 1887-1903.
    11. Sueyoshi, Toshiyuki & Ryu, Youngbok, 2022. "Performance assessment on technology transition from small businesses to the U.S. Department of Defense," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    12. Christopher F Baum & Hans Lööf & Pardis Nabavi, 2019. "Innovation strategies, external knowledge and productivity growth," Industry and Innovation, Taylor & Francis Journals, vol. 26(3), pages 348-367, March.
    13. Michael A. Verba, 2022. "Growth and innovation in the presence of knowledge and R&D accumulation dynamics," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 31(6), pages 485-510, August.
    14. Antonelli, Cristiano & Colombelli, Alessandra, 2015. "The knowledge cost function," International Journal of Production Economics, Elsevier, vol. 168(C), pages 290-302.
    15. Antonelli, Cristiano & Crespi, Francesco & Quatraro, Francesco, 2022. "Knowledge complexity and the mechanisms of knowledge generation and exploitation: The European evidence," Research Policy, Elsevier, vol. 51(8).
    16. Audretsch, David B. & Belitski, Maksim, 2024. "Knowledge collaboration, firm productivity and innovation: A critical assessment," Journal of Business Research, Elsevier, vol. 172(C).
    17. Amit Kundu & Dev Narayan Sarkar & Arabinda Bhattacharya, 2023. "Restructuring Organizations Through Innovation: a Study in the Context of the Indian Chemical Sector," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(3), pages 2767-2786, September.
    18. Link, Albert N. & Antonelli, Cristiano, 2015. "Strategic Alliances: An Introductory Framework," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201539, University of Turin.
    19. Grinza, Elena & Quatraro, Francesco, 2019. "Workers’ replacements and firms’ innovation dynamics: New evidence from Italian matched longitudinal data," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    20. Bruno Fischer & Paola Rücker Schaeffer & Sérgio Queiroz, 2019. "High-growth entrepreneurship in a developing country: Regional systems or stochastic process?," Contaduría y Administración, Accounting and Management, vol. 64(1), pages 59-60, Enero-Mar.
    21. Wallin, Tina, 2017. "An empirical study of firms’ absorptive capacity and export diversification," Working Paper Series in Economics and Institutions of Innovation 452, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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