[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/trt/rockwp/043.html
   My bibliography  Save this paper

The effect of regional social capital and external knowledge acquisition on process and product innovation

Author

Listed:
  • Keld Laursen
  • Francesca Masciarelli
Abstract
To introduce new products and processes, firms often need to acquire knowledge developed in other firms and organizations. Drawing on social capital and transaction cost theory, we argue that not only is the success of such acquisitions for the development of product and product innovations dependent on strategic and economic variables, it may also be contingent on the social capital available in the geographical area in which the firm is located. Combining data on social capital at the level of 21 regions with a large scale data set on innovative activities by a representative sample of 2464 Italian manufacturing firms, we find that — after controlling for a large set of firm characteristics and regional variables — being located in regions characterized by high level of social interaction leads to a higher propensity to innovate. Moreover, being located in an area characterized by a high degree of social interaction positively moderates the effectiveness of externally acquired R&D on innovation inclination. Key words: social capital; external acquisition; process innovation; product innovation.

Suggested Citation

  • Keld Laursen & Francesca Masciarelli, 2007. "The effect of regional social capital and external knowledge acquisition on process and product innovation," ROCK Working Papers 043, Department of Computer and Management Sciences, University of Trento, Italy, revised 12 Jun 2008.
    • Handle: RePEc:trt:rockwp:043
    as

    Download full text from publisher

    File URL: http://www.unitn.it/files/download/19388/rock043.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philip Cooke & Nick Clifton & Mercedes Oleaga, 2005. "Social capital, firm embeddedness and regional development," Regional Studies, Taylor & Francis Journals, vol. 39(8), pages 1065-1077.
    2. Zak, Paul J & Knack, Stephen, 2001. "Trust and Growth," Economic Journal, Royal Economic Society, vol. 111(470), pages 295-321, April.
    3. Jay B. Barney, 1986. "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, INFORMS, vol. 32(10), pages 1231-1241, October.
    4. Sjoerd Beugelsdijk & Ton Van Schaik, 2005. "Differences in social capital between 54 Western European regions," Regional Studies, Taylor & Francis Journals, vol. 39(8), pages 1053-1064.
    5. Toke Reichstein & Ammon Salter, 2006. "Investigating the sources of process innovation among UK manufacturing firms," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 15(4), pages 653-682, August.
    6. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    7. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "The Role of Social Capital in Financial Development," American Economic Review, American Economic Association, vol. 94(3), pages 526-556, June.
    8. Joel A. C. Baum & Tony Calabrese & Brian S. Silverman, 2000. "Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 267-294, March.
    9. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    10. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    11. Weijan Shan & Gordon Walker & Bruce Kogut, 1994. "Interfirm cooperation and startup innovation in the biotechnology industry," Strategic Management Journal, Wiley Blackwell, vol. 15(5), pages 387-394, June.
    12. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    13. Peter Moran, 2005. "Structural vs. relational embeddedness: social capital and managerial performance," Strategic Management Journal, Wiley Blackwell, vol. 26(12), pages 1129-1151, December.
    14. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    15. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    16. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    17. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    18. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    19. Olav Sorenson, 2005. "Social networks and industrial geography," Springer Books, in: Uwe Cantner & Elias Dinopoulos & Robert F. Lanzillotti (ed.), Entrepreneurships, the New Economy and Public Policy, pages 55-69, Springer.
    20. Maurizio Sobrero & Edward B. Roberts, 2001. "The Trade-off Between Efficiency and Learning in Interorganizational Relationships for Product Development," Management Science, INFORMS, vol. 47(4), pages 493-511, April.
    21. Sobrero, Maurizio. & Roberts, Edward Baer., 1996. "The trade-off between efficiency and learning in inter-organizational relationships," Working papers 3896-96., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    22. Elaine Romanelli & Olga M. Khessina, 2005. "Regional Industrial Identity: Cluster Configurations and Economic Development," Organization Science, INFORMS, vol. 16(4), pages 344-358, August.
    23. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    24. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
    25. Chris Freeman & Luc Soete, 1997. "The Economics of Industrial Innovation, 3rd Edition," MIT Press Books, The MIT Press, edition 3, volume 1, number 0262061953, April.
    26. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
    27. von Hippel, Eric, 1987. "Cooperation between rivals: Informal know-how trading," Research Policy, Elsevier, vol. 16(6), pages 291-302, December.
    28. Ashish Arora & Andrea Fosfuri & Alfonso Gambardella, 2004. "Markets for Technology: The Economics of Innovation and Corporate Strategy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511819, April.
    29. Nile W. Hatch & David C. Mowery, 1998. "Process Innovation and Learning by Doing in Semiconductor Manufacturing," Management Science, INFORMS, vol. 44(11-Part-1), pages 1461-1477, November.
    30. Fleming, Lee & Sorenson, Olav, 2001. "Technology as a complex adaptive system: evidence from patent data," Research Policy, Elsevier, vol. 30(7), pages 1019-1039, August.
    31. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3, Specia), pages 783-832.
    32. Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
    33. Glenn C. Loury, 1976. "A Dynamic Theory of Racial Income Differences," Discussion Papers 225, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    34. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    35. Glenn Hoetker, 2007. "The use of logit and probit models in strategic management research: Critical issues," Strategic Management Journal, Wiley Blackwell, vol. 28(4), pages 331-343, April.
    36. Frédéric Dalsace & Michael J. Leiblein & Jeffrey J. Reuer, 2002. "Do make or buy decisions matter? The influence of organizational governance on technological performance," Post-Print hal-00457649, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Keld Laursen & Francesca Masciarelli & Andrea Prencipe, 2012. "Regions Matter: How Localized Social Capital Affects Innovation and External Knowledge Acquisition," Organization Science, INFORMS, vol. 23(1), pages 177-193, February.
    2. Cefis, Elena & Marsili, Orietta, 2012. "Going, going, gone. Exit forms and the innovative capabilities of firms," Research Policy, Elsevier, vol. 41(5), pages 795-807.
    3. Laursen, Keld & Salter, Ammon J., 2014. "The paradox of openness: Appropriability, external search and collaboration," Research Policy, Elsevier, vol. 43(5), pages 867-878.
    4. Ithai Stern & Sharon D. James, 2016. "Whom are you promoting? Positive voluntary public disclosures and executive turnover," Strategic Management Journal, Wiley Blackwell, vol. 37(7), pages 1413-1430, July.
    5. Frank T. Rothaermel & Maria Tereza Alexandre, 2009. "Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity," Organization Science, INFORMS, vol. 20(4), pages 759-780, August.
    6. Jung , Taehyun & Walsh , John P., 2011. "Organizational paths of commercializing patented inventions: The effects of transaction costs, firm capabilities, and collaborative ties," Papers in Innovation Studies 2011/3, Lund University, CIRCLE - Centre for Innovation Research.
    7. repec:bla:jomstd:v:47:y:2010:i:s2:p:1483-1509 is not listed on IDEAS
    8. Jaideep Anand & Raffaele Oriani & Roberto S. Vassolo, 2010. "Alliance Activity as a Dynamic Capability in the Face of a Discontinuous Technological Change," Organization Science, INFORMS, vol. 21(6), pages 1213-1232, December.
    9. Hagedoorn, John & Wang, Ning, 2012. "Is there complementarity or substitutability between internal and external R&D strategies?," Research Policy, Elsevier, vol. 41(6), pages 1072-1083.
    10. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    11. Schwiebacher, Franz, 2012. "Complementary assets, patent thickets and hold-up threats: Do transaction costs undermine investments in innovation?," ZEW Discussion Papers 12-015, ZEW - Leibniz Centre for European Economic Research.
    12. Fischer, Timo & Henkel, Joachim, 2013. "Complements and substitutes in profiting from innovation—A choice experimental approach," Research Policy, Elsevier, vol. 42(2), pages 326-339.
    13. Nickerson, Jack A. & Yen, C. James & Mahoney, Joseph T., 2011. "Exploring the Problem-Finding and Problem-Solving Approach for Designing Organizations," Working Papers 11-0107, University of Illinois at Urbana-Champaign, College of Business.
    14. Montserrat Boronat-Navarro & Alexandra García-Joerger, 2019. "Ambidexterity, Alliances and Environmental Management System Adoption in Spanish Hotels," Sustainability, MDPI, vol. 11(20), pages 1-16, October.
    15. Mehmet Ali Köseoglu & John A. Parnell & Melissa Yan Yee Yick, 2021. "Identifying influential studies and maturity level in intellectual structure of fields: evidence from strategic management," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1271-1309, February.
    16. Basu, Sandip & Phelps, Corey & Kotha, Suresh, 2011. "Towards understanding who makes corporate venture capital investments and why," Journal of Business Venturing, Elsevier, vol. 26(2), pages 153-171, March.
    17. Cappelli, Riccardo & Corsino, Marco & Laursen, Keld & Torrisi, Salvatore, 2023. "Technological competition and patent strategy: Protecting innovation, preempting rivals and defending the freedom to operate," Research Policy, Elsevier, vol. 52(6).
    18. Lyndon Murphy & Robert Huggins & Piers Thompson, 2016. "Social capital and innovation: A comparative analysis of regional policies," Environment and Planning C, , vol. 34(6), pages 1025-1057, September.
    19. Ashton Hawk & Jeffrey J. Reuer & Andrew Garofolo, 2021. "The Impact of Firm Speed Capabilities on the Decision to Partner or Go It Alone," Strategy Science, INFORMS, vol. 6(3), pages 191-208, September.
    20. Yu-Shan Su & Eric Tsang & Mike Peng, 2009. "How do internal capabilities and external partnerships affect innovativeness?," Asia Pacific Journal of Management, Springer, vol. 26(2), pages 309-331, June.
    21. Grilli, Luca & Murtinu, Samuele, 2018. "Selective subsidies, entrepreneurial founders' human capital, and access to R&D alliances," Research Policy, Elsevier, vol. 47(10), pages 1945-1963.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:trt:rockwp:043. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Loris Gaio (email available below). General contact details of provider: https://edirc.repec.org/data/ditreit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.