Large, established firms acquiring small, technology-based firms must manage them so as to both exploit their capabilities and technologies in a coordinated way and foster their exploration capacity by preserving their autonomy. We suggest that acquirers can resolve this coordination-autonomy dilemma by recognizing that the effect of structural form on innovation outcomes depends on the develop...

Article history: Received 18 March 2014 Received in revised form 22 June 2014 Accepted 14 July 2014 Available online 14 August 2014 This study provides the first test of the intelligence–innovation hypothesis, which contributes to the intelligence–creativity debate in the psychology literature and to the innovation–growth debate in the economics literature. UsingU.S. state-level data the study ...

We explore the causal links between service firms’ knowledge investments, their innovation outputs and business growth based on a bespoke survey of around 1100 UK service businesses. We combine the activity based approach of the innovation value chain with firms’ external links at each stage of the innovation process. This introduces the notion of ‘encoding’ relationships through which learning...

The increasing popularity of open innovation approaches has lead to the rise of various innovation platforms on the Internet which might contain 10.000s user-generated ideas. However, a company’s absorptive capacity is limited regarding such an amount of ideas so that there is a strong need for mechanism to identify the best ideas. Extending previous decision management research we focus on ana...

I distinguish the impacts of input spillovers and imperfect appropriability of the revenue generated by cost-saving innovation in a racing model. Comparativestatic relationships with respect to the level of spillovers depend on the levels of post-innovation payoffs; comparative-static relationships with respect to the degree of appropriability depend on changes in the levels of post-innovation ...

The present article outlines the main developments of what may be called the ‘new innovation theory’. This theory is based on the work of Schumpeter and combines it with the profit strategy approach. The purpose of this combination is to show that innovation needs to be embedded in coherent profit strategies in order to be effective. Innovation capacity and economic performance are much more th...

I am pleased to speak with you today on technological innovation in the financial services sector. As you may know, technology and its impact have been key areas of focus at the Federal Reserve in recent years. As my colleagues on the Federal Reserve Board have often noted, technological innovation affects not just banking, financial services, and regulatory policy, but also the direction of th...

Innovation has become a recognized driver of economic prosperity of a country through sustained growth of its entrepreneurships. Moreover, recently coined term open innovation is increasingly taking a lead in enterprise management in terms of sustained profitability. Foci of researchers and practitioners are revolving around innovation methods, processes, and strategies. This chapter seeks to f...

Today’s product companies (original equipment manufacturers, or OEMs) increasingly outsource production, especially when the activities are asset intensive or require process technologies characterized by rapid innovation. When such an OEM also outsources the procurement of the required materials, especially to the party providing the production services, the OEM risks unpleasant surprises, suc...

........................................................................................... 4 Introduction ...................................................................................... 5 Theoretical background .................................................................. 7 Absorptive Capacity ............................................................. 9 Types of Openness ..........