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Optimal cognitive distance and absorptive capacity

Author

Listed:
  • Nooteboom, B.

    (Erasmus University Rotterdam)

  • Vanheverbeke, W.P.M.

    (LUC Diepenbeek)

  • Duysters, G.M.

    (ECIS, Eindhoven University of Technology)

  • Gilsing, V.A.

    (ECIS, Eindhoven University of Technology)

  • Oord van den, A.J.

    (ECIS, Eindhoven University of Technology)

Abstract

In this paper we test the relation between cognitive distance and innovation performance of firms engaged in technology-based alliances.The key finding is that the hypothesis of an inverted U-shaped effect of cognitive distance on innovation performance of firms is confirmed.Moreover, as expected, we found that the positive effect for firms is much higher when engaging in more radical, exploratory alliances than in more exploitative alliances.The effect of cumulative RD turns out to be mixed.It may increase absorptive capacity, as expected, but there is clear evidence that it also reduces the effect of cognitive distance on novelty value.
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Suggested Citation

  • Nooteboom, B. & Vanheverbeke, W.P.M. & Duysters, G.M. & Gilsing, V.A. & Oord van den, A.J., 2005. "Optimal cognitive distance and absorptive capacity," Working Papers 05.05, Eindhoven Center for Innovation Studies.
  • Handle: RePEc:ein:tuecis:05.05
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    More about this item

    Keywords

    cognitive; distance;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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