Latecomer firms’ technological learning strategies for creative imitation: evidence from the Korean pharmaceutical industry

Abstract

ABSTRACT This paper examines how accumulated internal R&D investment and foreign technology in-licensing experience independently and interactively affect creative imitation by latecomer firms. Based on the data of 61 listed Korean pharmaceutical firms over 19 years (1999 ∼ 2017), we showed that either accumulated internal R&D investment or foreign technology in-licensing experience has a positive impact on the development of creative imitation by latecomer firms. However, we found that a simultaneous increase in accumulated internal R&D investment and foreign technology in-licensing experience leads to less creative imitation outcomes, implying the existence of an internal tension between these two learning modes.