Small Technology Firms: Academic Orientation and Knowledge Dimensions in Collaborative Innovation

Abstract

This study focuses on small biotechnology firms and investigates how the depth and the breadth of knowledge application in the firm relate to the innovative output it reaps from entering alliances. We also take into account a firm’s orientation towards alliances with universities and see how this orientation combines with the depth of knowledge to affect a firm’s ability to gain innovative outputs from collaborations. Our findings suggest that firms oriented to university alliances leverage their depth of applying knowledge in order to obtain more innovative outputs. However, firms without such orientation seem to follow a different path: Even if they have focused their R&D resources over a few technological fields, they don’t seem to achieve more innovative outputs in their alliances. We also find that a tendency toward partnering upstream with universities per se does not lead to more innovative outputs but only when combined with a deep knowledge base.