Knowledge Sourcing Activities Research Articles

Inventors, firms and localities: insights into the nexus that forms and alters the evolution of regional knowledge spaces

Abstract The present investigation aims to provide insights into the nexus between firms and localities that ultimately shapes the evolution of regional knowledge spaces. The ‘inventive footprint’ of firms, indicated by the spatial distribution of associated inventors across regional economic settings, provides the foundation to analyse whether firms’ external knowledge sourcing contributes to their own evolution, and by extension to their home region’s technological capabilities. Findings indicate that firms’ innovation efforts beyond their home base are subsequently absorbed at home and thus that knowledge-sourcing activities by multi-locational firms significantly contributes to the evolution of regional knowledge space trajectories.

In search of markets and technology: the role of cross-border knowledge for domestic productivity

Abstract Internationalization of research and development (R&D) is a double-edged sword: on the one hand, it is understood as a driving force of global innovation performance; on the other hand, from a national perspective it is often perceived as a threat to domestic efforts. Against this background, we compare the contribution of domestic and international knowledge sourcing to the productivity of Swiss firms. We find a positive productivity effect of knowledge-sourcing activities in geographically close countries (in the European Union [EU]). Domestic knowledge alone or from other world regions does not yield positive productivity effects. We provide evidence that companies that source international knowledge to generate innovative products benefit disproportionately from knowledge sourcing in the EU and that both knowledge- and market-seeking motives may be relevant to this result.

From knowledge sourcing to firms’ productivity: investigating innovation value chain of Indonesian manufacturing firms

Purpose The purpose of this paper is to investigate the innovation value chain (IVC) that encompasses knowledge sourcing, transformation and exploitation activities among Indonesian manufacturing firms by using data from the Indonesia Innovation Survey. Design/methodology/approach A simple approach of single equation Probit model, Logit regression and Tobit regression are used in the first, second and third stages of IVC consecutively. Findings This study finds the existence of a synergistic relationship between internal and external sources of knowledge as well as among external sources of knowledge. In terms of the second link of the IVC, internal R&D plays an important role that positively influences knowledge transformation into all types of innovation and innovation success. External knowledge that has a similar pattern in shaping innovation mainly comes from market and open sources. Scientific institutions tend to contribute to innovation negatively, and few positive impacts on process innovation are observed from government R&D and non-profit R&D institutions. Informal knowledge is more likely to influence technological than non-technological innovation. Research limitations/implications Finally, the limitations of this study need to be acknowledged. Issues related to firms’ sectors have not been discussed in this study, and as a result, sectors’ effects on the three links of IVC cannot be detected. This study is a cross-sectional in nature, as a result, the dynamic of Indonesian manufacturing firms’ IVC is missing. Hence, future studies may address this limitation by conducting a longitudinal study. Originality/value This study is different from the previous IVC studies owing to the following reasons. Firstly, in this study, a broader source of knowledge is tested. Secondly, the wider innovation (technological and non-technological innovation) is also assessed.

How does external knowledge sourcing enhance product development? Evidence from drug commercialization

Like in many industries, knowledge management is the key to the successful developments of new drugs and other commercialized products in the pharmaceutical sector. Prior studies have shown that knowledge management requires effective external knowledge sourcing strategies. We argue that both the geographic distance to external knowledge sources and the diversity of such sources have strong influences on the success of the search process and the development of new drugs. We test these theoretical assumptions by applying several advanced estimation techniques on a combined broad set of data from the U.S. Patent and Trademarks Office (USPTO) and U.S. Food and Drug Administration (FDA). We find empirical evidence that the intensity of external knowledge sourcing activities has a positive effect on new drugs approval and commercialization. Specifically, our models predict that a higher number of references to prior patents increases the probability of a new patented drug to be approved and commercialized. Furthermore, the geographic distance covered in the search for external knowledge also positively contributes to drug commercialization. Important management implications derived from these findings are also discussed in the paper.

The effectiveness of R&D subsidies in fostering firm innovation: The role of knowledge-sourcing activities

This article presents a novel conceptual framework that uses the notion of knowledge sourcing to explain how firms realize benefits from R&D subsidies in terms of innovations. The study considers two dimensions of the firm’s knowledge sourcing: its R&D effort and level of openness to technology markets. This article proposes that the policy-induced effects of R&D subsidies on the knowledge-sourcing process increase firms’ innovation outcomes, thus making this policy intervention effective in promoting innovation. By using panel data from Spanish manufacturing firms, this article presents evidence consistent with the hypothesis that by changing the knowledge sourcing of firms, National R&D subsidy programs in Spain also favor more firm innovation, measured by patent applications and new product launches. It is also documented that the granting of R&D subsidies does not affect firm innovation directly but rather through inducing changes in the firm’s R&D effort and openness to technology markets. JEL CLASSIFICATION: O32, O36, O38

Goal Multiplicity and Innovation: How Social and Economic Goals Affect Open Innovation and Innovation Performance

Integrating insights from the strategic goal literature and the knowledge‐based view of the firm, this article proposes that the pursuit of social and economic strategic goals by commercial firms affects their innovation performance through different knowledge sourcing activities. The strategic goals, knowledge sourcing practices, and innovation performance of 1257 Belgian firms are investigated. Results show that both social and economic strategic goals are associated with the use of external information sources, but only the pursuit of social goals inspires firms to engage in external collaboration. No evidence is found of an inherent conflict between social and economic strategic goals. Instead, the two types of goals are independent of each other, that is, an emphasis on social goals does not preclude an emphasis on economic goals and vice versa. Moreover, firms’ external knowledge sourcing and innovation performance benefit most when strongly held social goals align with strongly held economic goals. These findings offer new insight into the nature and the effects of goal multiplicity among commercial firms. They open up a new perspective on the potential positive effects of the joint pursuit of social and economic strategic goals instead of seeing them as inherently conflicting, as past research has typically done. We illustrate how social strategic goals can deliver unique benefits to a firm, independently of and in addition to economic strategic goals. Our findings also contribute to the open innovation literature by revealing strategic goals as a driver of firms’ knowledge sourcing practices. Our findings suggest that solely emphasizing economic goals may be one reason why firms struggle to implement open innovation practices and do not reap their full benefits. The practical implications of our research are discussed.

The influence of inbound open innovation on ambidexterity performance: Does it pay to source knowledge from supply chain stakeholders?

Extant research has neglected an in-depth examination of the relationship between external knowledge sourcing and the ability of firms to balance radical and incremental innovation activities (i.e., innovation ambidexterity). Therefore, the present paper seeks to reveal the effects of knowledge sourcing activities directed toward three relevant supply chain stakeholders (i.e., suppliers, customers, and competitors) on innovation ambidexterity. Based on a sample of 5897 firms that participated in the Italian Innovation Survey (IIS) (2008–2010), we reveal that sourcing knowledge from suppliers, customers, and competitors has a positive influence on innovation ambidexterity, hence confirming our hypotheses. Specifically, suppliers represent the most relevant knowledge source, followed by customers and, then, competitors. These results expand the literature discussing the relationship between inbound open innovation and ambidexterity performance, which falls short of a clear understanding of whether and the extent to which sourcing knowledge from supply chain stakeholders facilitates achieving innovation ambidexterity.

Linking public support for R&D to firm innovation: The role of knowledge sourcing activities

The aim of this study is to examine how firms realize the benefits associated with public support for R&D programs. To do so, this research proposes and tests the hypothesis that the level of knowl...

Innovation in space: the mosaic of regional innovation patterns

This article casts light on the increasingly complex geography of innovation and knowledge sourcing activities. We argue that the spatial patterns of learning and knowledge exchange vary substantially across different types of regions and industries. The article elucidates such variations by combining three analytical approaches, namely, (i) modes of innovation (differentiating between science-technology-innovation (STI) and doing-using-interacting (DUI) modes), (ii) regional innovation systems (distinguishing between organizationally thick and diversified, thick and specialized, and thin systems), and (iii) types of knowledge linkages that connect actors during the innovation process. We explore in detail the key characteristics of the spatial architectures of innovation and knowledge flows in STI and DUI industries located in regional innovation systems with varying degrees of organizational thickness and specialization. We also discuss empirical examples documented in the extant literature to illustrate our arguments on how innovation and knowledge circulation unfold in space in various territorial and industrial contexts.

Influence of Institutional and Geographical Factors on the Openness and Dispersion of Knowledge-Sourcing Practices

Organizations do not operate in a vacuum. They are embedded in specific geographic locations and are subject to institutional environments that constrain and shape the way they conduct business in general, and innovation activities in particular. This article summarizes my work about how firms adapt their innovative and knowledge-sourcing activities to factors such as geographic peripherality, government monetary and non-monetary support policies, and ownership changes due to pro-market reforms during privatization processes.

From whence the knowledge came: Heterogeneity of innovation procurement across Europe

To induce innovation in the public sector, Directive 2014/24/EU encourages internal and external consultation during the procurement process. However, little is known regarding the prominence of these practices. Determining the extent of knowledge sourcing in innovation procurement across 28 European countries, this paper presents an institutional cluster analysis, examining heterogeneity across knowledge sourcing activities, procurement areas, and tender innovation outcomes for 1,505 public procurers from 2008-2010. Building upon existing taxonomies, three types of procuring agencies are identified: Large collaborative agencies practicing public procurement of innovation (31%); supplier-focused pre-commercial procurers (20%); and direct procurers at the municipal level (49%). Validation supports this heterogeneity, using innovation outcomes and policy drivers. At the country level, Spain, the United Kingdom, Italy, Germany and Poland are most represented in respective clusters. Findings enable predictions regarding impacts on agencies and innovation from the new public procurement directive's translation into national law by Member States.

The interaction between internal R&D and different types of external knowledge sourcing: an empirical study of Chinese innovative firms

This paper investigates to what extent internal R&D efforts and different types of external knowledge sources jointly affect innovation performance of firms in emerging economies. Based on a survey about external knowledge sourcing activities of Chinese innovative firms, we categorize external knowledge sources into four groups: science‐based partners; horizontal connections; value chain partners, and technology service providers. We find that both internal R&D activities and external knowledge sourcing have a positive effect on firms' innovation performance. Strong internal R&D capabilities also increase the effect of sourcing from value chain partners and horizontal connections, but we do not find support for complementarity between internal R&D and collaborations with universities and research labs. These findings jointly suggest that the mixture of different types of external knowledge partners in combination with internal R&D capabilities is crucial in understanding the role of open innovation in emerging economies.

What drives the R&D capacity growth of foreign subsidiaries? A study of MNE subsidiaries in Korea

We propose and test a model of antecedents of research and development (R&D) capacity growth in foreign subsidiaries of multinational enterprises (MNEs) which considers subsidiaries’ knowledge sourcing activities as well as aspects of headquarters–subsidiary relationships. An analysis of survey data collected from 118 foreign subsidiaries in South Korea reveals that their R&D capacity growth is positively related to external knowledge sourcing, but only marginally associated with internal knowledge sourcing. We also find that subsidiaries’ R&D capacity growth is positively related to their managerial autonomy. Furthermore, cultural distance between MNE home and host countries has a marginal negative effect on R&D capacity growth and weakens the link between internal knowledge sourcing and R&D capacity growth. Overall, our results suggest that researchers, managers, and policy-makers who are concerned with the growth of R&D activities by MNE foreign subsidiaries should consider knowledge sourcing dimensions and relational factors not in an isolated manner, but in concert.

Task-driven learning: The antecedents and outcomes of internal and external knowledge sourcing

The degree to which individuals leverage knowledge resources influences their effectiveness and may shape their organizations’ competitive advantage. We examine the ways in which tasks with different characteristics affect individuals’ use of internal and external knowledge and the outcomes of such behaviors. Our analysis reveals that interdependent and non-routine tasks drive internal knowledge sourcing, while complex tasks motivate external knowledge sourcing. Internal and external knowledge sourcing activities contribute to individuals’ cognitive adaptation and innovation, with a negative interaction between them, while cognitive replication benefits only from internal knowledge sourcing. These findings can help managers better satisfy individuals’ knowledge needs and achieve intended organizational outcomes.

Combining Knowledge from Different Sources, Channels and Geographical Scales

The aim of this article is to examine conceptually and empirically how innovative firms combine knowledge (1) provided by different sources, (2) accessed at different spatial scales and (3) acquired through different channels. We add to the conceptual debate by contrasting and synthesising the perspectives offered on these issues by four key concepts, namely the local buzz and global pipelines argument, the knowledge-base approach, the notions of Science–Technology–Innovation and Doing–Using–Interacting modes of innovation as well as the regional innovation systems concept. The empirical part of the article contains an analysis of knowledge-sourcing activities employed by 181 firms belonging to the Austrian automotive supplier industry. Our findings reveal that it is, indeed, combinations of knowledge sourced from different partners located at different spatial scales and acquired through different channels that are relevant. However, it is particular combinations that dominate while others are negligible. Austrian automotive supplier firms combine knowledge provided by customers with knowledge inputs from a variety of other sources. Most of the combinations involve the European or global levels combined with the regional and/or national level. Finally, firms combine spillovers with a variety of other channels to acquire innovation-relevant knowledge.

User innovation and knowledge sourcing: The case of financial software

According to user innovation literature, users can create important innovations and the novel functionalities embedded in those user innovations often become the sources of subsequent innovations by both other users and manufacturers. However, manufacturers are often hesitant in commercializing an innovation created by a single user due to the uncertainty around the market demands. We propose that such hesitancy will decrease when an increasing number of other users source knowledge elements from the focal user innovation and reproduce the novel functionality. Once the focal user innovation is commercialized by manufacturers, other users can purchase the novel functionality from the market rather than reproducing it in house. We propose that users capable of drawing on innovation resources are more likely to maintain in-house reproduction of the focal user innovation than users low on innovation resources. By using the Vector Autoregressive (VAR) model and Impulse Response Function (IRF) analysis method, we analyze knowledge sourcing activities from financial software patents data, and the findings provide empirical supports for our propositions.

Does FDI Spur Productivity, Knowledge Sourcing and Innovation by Incumbent Firms? Evidence from Manufacturing Industry in Estonia

AbstractDoes FDI affect knowledge sourcing activities, innovation and productivity growth of domestic firms? This study employs firm‐level panel data from Estonia’s manufacturing sector to investigate different channels through which FDI affects domestic firms. Based on instrumental variables approach, I find no evidence of an effect of FDI entry on local incumbents’ short‐term productivity growth. However, there is positive association between the entry of FDI and the more direct measures of spillovers. FDI inflow to a sector is associated with more knowledge flows to domestic firms and increase in their innovation activities.

Regional Innovation Systems and Knowledge-Sourcing Activities in Traditional Industries—Evidence from the Vienna Food Sector

The aim of this paper is to investigate the spatial pattern of knowledge links in traditional, long-established, and less-research-intensive sectors and to contribute to a better understanding of the role of the regional innovation system (RIS) as space for knowledge-sourcing activities in such industries. Departing from conceptual work on the science, technology, and innovation (STI) and the doing, using, and interacting (DUI) modes of learning, it is argued that the relation between mature industries and their RIS depends on the relative importance of these two innovation modes and their specific geographies of knowledge-sourcing activities. The empirical focus is on the food industry in the Vienna metropolitan region. Based on ten case studies of firms and ten interviews with research organisations and industry experts, it is suggested that innovation rests on a combination of the DUI and the STI modes of learning. This is related with a complex spatial pattern of knowledge links and a selective integration of innovative food companies into the RIS. The firms investigated use scientific knowledge available within the RIS and tap into extraregional pools of experience-based knowledge.

Does FDI Spur Innovation, Productivity and Knowledge Sourcing by Incumbent Firms? Evidence from Manufacturing Industry in Estonia

Does FDI affect productivity growth, innovation, and knowledge sourcing activities of domestic firms? This study employs detailed firm-level panel-data from Estonia’s manufacturing sector to investigate different channels through which FDI can affect domestic firms. I use instrumental variables approach to identify the effects. I find no evidence of an effect of FDI entry on local incumbents’ TFP and labour productivity growth in the short term. The effect on productivity does not depend on the local firms’ distance to the productivity frontier. However, there are positive spillovers on process innovation. The results show significant positive correlation between the entry of FDI in a sector and the more direct measures of spillovers in subsequent periods. This is consistent with the view that FDI inflow to a sector intensifies knowledge flows to domestic firms.

Does FDI Spur Innovation, Productivity and Knowledge Sourcing by Incumbent Firms? Evidence from Manufacturing Industry in Estonia

Does FDI affect productivity growth, innovation, and knowledge sourcing activities of domestic firms? This study employs detailed firm-level panel-data from Estonia???s manufacturing sector to investigate different channels through which FDI can affect domestic firms. I use instrumental variables approach to identify the effects. I find no evidence of an effect of FDI entry on local incumbents??? TFP and labour productivityg rowth in the short term. The effect on productivity does not depend on the local firms??? distance to the productivity frontier. However, there are positive spillovers on process innovation. The results show significant positive correlation between the entry of FDI in a sector and the more direct measures of spillovers in subsequent periods. This is consistent with the view that FDI inflow to a sector intensifies knowledge flows to domestic firms.