Technological and non-technological innovation synergies under the lens of absorptive capacity efficiency

Abstract

While extensive research has focused on the role of absorptive capacity on innovation performance, no attention has been paid to the investigation of the relationship between absorptive capacity efficiency -the returns of resources devoted to absorptive capacity development- and innovation synergies. Marketing or organizational innovations, although significant for firm performance, are not considered as part of firm’s innovation strategy. We argue that firms do not randomly invest on innovation projects, but instead follow specific innovation strategy, aiming at integrating multiple innovation types which allows them to exploit emerging innovation synergies and thus, increase the returns from resources devoted to their absorptive capacity. Our empirical findings suggest that innovation synergies differentially affect firms' absorptive capacity efficiency. Product-marketing innovation synergies positively affect internal knowledge generation, while process-organisational innovation synergies negatively impact in-house Absorptive Capacity efficiency. Both integrated innovations have a positive effect on externally sourced Absorptive Capacity efficiency.