The knowledge linkage between science and technology influences corporate technological innovation: Evidence from scientific publications and patents

Abstract

Scientific knowledge has been shown to be a key contributor to corporate technological innovation; hence, modern inventive firms place a strong emphasis on scientific research. However, little is known about how the knowledge linkage between science and technology (ST linkage) of corporations fosters their technological innovation. In an effort to fill this vacuum in the literature, we investigate how multiple properties of ST linkage influence corporate technological innovation. We conducted a Zero-inflated Negative Binomial regression using scientific publications, patents, and firm-level data from 671 pharmaceutical and 686 semiconductor corporations to test our hypotheses. We find that the higher the proportion of corporations citing their published scientific publications in patents, the more likely they are to produce more patents, and corporate technological innovation benefits from the utilization of scientific knowledge produced in the early stages. Furthermore, the positive effects of the aforementioned factors on the technological innovation performance of corporations are present in both scientific research strategies (e.g., independent vs. joint research). These findings contribute to the understanding of the underlying mechanism of corporate basic research facilitating technological innovation. This study also provides meaningful advice regarding how corporations can enhance their technological innovation through scientific research.