Complementarity between internal knowledge creation and external knowledge sourcing in developing countries
نویسندگان
چکیده
In developing countries, innovation is to a large extent a matter of adoption of advanced technologies but also of conducting internal R&D to be able to better assimilate existing technologies. This paper, based on firm level data from 24 developing countries, examines the roles of internal R&D efforts (MAKE) and external technology sourcing (BUY) in fostering productivity in manufacturing firms. Is MAKE a substitute for BUY or are the two strategies complementary as evidenced in some developed countries? Our empirical investigation highlights the critical role of external technology acquisition in manufacturing industries in low-income countries and exhibits signs of complementarity only in middle-income countries.
منابع مشابه
Complementarity between internal knowledge creation and external knowledge sourcing in developing and least developed countries
In order to catch up with the technological frontier, firms in developing countries have been striving hard to promote technological advancement through internal R&D effort (make) as well as through external sourcing (buy). The adoption and learning process requires firms to set up effective strategies to catalyze the speed of their catching-up. This study uses the complementarity approach to i...
متن کاملComplementarities and Substitutabilities Among Knowledge Sourcing Strategies and Their Impact on Firm Performance
Research Article Byounggu Choi Kookmin University [email protected] Jae-Nam Lee Korea University [email protected] Knowledge sourcing strategy (KSS) is regarded as a key determinant of successful Knowledge Management (KM). However, prior research on how KSSs can improve firm performance has produced inconsistent results. This may be due to inadequate consideration of complementary and subs...
متن کاملIn Search of Complementarity in the Innovation Strategy: Internal R&D and External Knowledge Acquisition
In addition to doing own research and development, firms typically are engaged in the acquisition of knowledge on the technology market. Using data from the Community Innovation Survey on Belgian manufacturing firms, we provide econometric evidence consistent with complementarity between these different innovation activities, i.e. the marginal return to one activity increases with the level of ...
متن کاملThe Innovation Value Chain
Innovation events the introduction of new products or processes represent the end of a process of knowledge sourcing and transformation. They also represent the beginning of a process of exploitation which may result in an improvement in the performance of the innovating business. This recursive process of knowledge sourcing, transformation and exploitation we call the innovation value chain. M...
متن کاملOrganizing for Knowledge Generation: Internal Knowledge Networks and the Contingent Effect of External Knowledge Sourcing
Research summary: When faced with a new technological paradigm, incumbent firms can opt for internal development and/or external sourcing to obtain the necessary new knowledge. We explain how the effectiveness of external knowledge sourcing depends on the properties of internal knowledge production. We apply a social network lens to delineate interpersonal, intra-firm knowledge networks and cap...
متن کامل