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Complementarity in the innovation strategy: Internal R&D, external technology acquisition, and cooperation in R&D

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  • Cassiman, Bruno

    () (IESE Business School)

  • Veugelers, Reinhilde

    (IESE Business School)

Abstract

Successful innovation depends on the development and integration of new knowledge in the innovation process. In order to successfully innovate, the firm will combine different innovation activities. In addition to doing own research and development, firms typically are engaged in the acquisition of knowledge on the technology market and cooperate actively in R&D with other firms and research organizations. In this paper we show that there exist important complementarities between the different innovation activities. We test complementarity between the innovation activities both directly, through the productivity approach, and indirectly, through the adoption approach. Using data from the Community Innovation Survey on Belgian manufacturing firms, we show that firms that are only engaged in a single innovation strategy, either internal R&D activities or sourcing technology externally, introduced fewer new and substantially improved products compared to firms which combine internal and external sourcing. This result is consistent with complementarity between own R&D and external technology sourcing activities. In the adoption approach we show that the different innovation activities are strongly positively correlated and identify common drivers, resulting in the perceived complementarity between these innovation activities. An important finding is that a more basic R&D base which may serve as an absorptive capacity and a capacity to strategically protect intellectual property are important common drivers for the different innovation activities

Suggested Citation

  • Cassiman, Bruno & Veugelers, Reinhilde, 2002. "Complementarity in the innovation strategy: Internal R&D, external technology acquisition, and cooperation in R&D," IESE Research Papers D/457, IESE Business School.
  • Handle: RePEc:ebg:iesewp:d-0457
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    References listed on IDEAS

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    3. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
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    Cited by:

    1. Kuhne, Bianka & Gellynck, Xavier & Vermeire, Bert & Molnar, Adrienn, 2007. "Barriers and Drivers of Innovation in Traditional Food Networks," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6617, International European Forum on Innovation and System Dynamics in Food Networks.
    2. Liza Jabbour & Maria Pluvia Zuniga, "undated". "Drivers of the Offshore Outsourcing of R&D: Empirical Evidence from French Manufacturers," Discussion Papers 09/04, University of Nottingham, GEP.
    3. Mohnen, Pierre & Roller, Lars-Hendrik, 2005. "Complementarities in innovation policy," European Economic Review, Elsevier, vol. 49(6), pages 1431-1450, August.
    4. repec:eee:chieco:v:46:y:2017:i:s:p:s50-s64 is not listed on IDEAS
    5. Vermeire, Bert & Gellynck, Xavier, 2007. "Contribution of Cluster Relations to Food Competitiveness in the EU," 2007 1st Forum, February 15-17, 2007, Innsbruck, Austria 6583, International European Forum on Innovation and System Dynamics in Food Networks.
    6. Gellynck, Xavier & Kuhne, Bianka, 2008. "Innovation in Traditional Food Networks," 110th Seminar, February 18-22, 2008, Innsbruck-Igls, Austria 49847, European Association of Agricultural Economists.
    7. Roper, Stephen & Hewitt-Dundas, Nola, 2015. "Knowledge stocks, knowledge flows and innovation: Evidence from matched patents and innovation panel data," Research Policy, Elsevier, vol. 44(7), pages 1327-1340.
    8. repec:krk:eberjl:v:3:y:2015:i:4:p:123-138 is not listed on IDEAS

    More about this item

    Keywords

    Management; Innovation strategy;

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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