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Optimal cognitive distance and absorptive capacity

  • 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)

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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Paper provided by Eindhoven Center for Innovation Studies in its series Working Papers with number 05.05.

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Date of creation: 2005
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Handle: RePEc:ein:tuecis:05.05
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