Purpose
Although collaborative research is believed to be an important means of accessing external knowledge, research on whether taking a strategic network position benefits new product development (NPD) is inconclusive. This study aims to unravel the conditions under which taking a strategic position within a collaborative research network is conducive for a firm’s NPD.
Design/methodology/approach
Drawing on social network theory, absorptive capacity theory and knowledge recombinant studies, this study examines how strategic network positions (i.e. degree centrality and structural holes) and knowledge base cohesion (i.e. local and global cohesion) in tandem affect a firm’s NPD. A panel data set of 366 firms in the Chinese automobile sector (2002–2010) is empirically analyzed, using the panel negative binomial approach with random effects and several alternate estimation approaches.
Findings
This study reveals that, rather than the volume of a firm’s knowledge base, its cohesion determines how it absorbs and uses knowledge accrued from collaborative research for NPD. Specifically, this paper finds that centrally positioned firms have greater NPD when their knowledge bases are locally cohesive, while firms spanning structural holes have more NPD when their knowledge bases are globally cohesive.
Originality/value
Successfully transferring collaborative research outcomes into product innovation is difficult. This study contributes to the literature on strategic network positions and NPD. The findings advance the understanding of knowledge base cohesion’s moderating role in explaining how firms absorb and exploit external knowledge for internal innovation. The findings also have important implications for managers who wish to promote product innovation by engaging in collaborative research with external partners.
BackgroundMonoclonal antibodies (mAbs), as an emerging technology, have become increasingly important in the development of human therapeutic agents. How developing countries such as China could seize this emerging technological opportunity remains a poorly studied issue in prior literature. Thus, this paper aims to investigate the research and development of mAbs in China based on an innovation system functions approach and probes into the question of how China has been taking advantage of emerging technologies to overcome its challenges of building up a complete innovation system in developing mAbs.MethodsMixed research methods were applied by combining archival data and field interviews. Archival data from the China Food and Drug Administration, Web of Science, the United States Patent and Trademark Office, the Chinese Clinical Trial Registry, and the National Science and Technology Report Service were used to examine the status quo of the technology and research and development (R&D) activities in China, while the opinions of researchers and managers in this field were synthesized from the interviews.ResultsFrom the perspective of innovation system functions, technological development of mAb in China is being driven by incentives such as the subsidies from the State and corporate R&D funding. Knowledge diffusion has been well served over the last 10 years through exchanging information on networks and technology transfer with developed countries. The State has provided clear guidance on search of emerging mAb technologies. Legitimacy of mAb in China has gained momentum owing to the implementation of government policies stipulated in the “The Eleventh Five-year Plan” in 2007, as well as national projects such as the “973 Program” and “863 Program”, among others. The potential of market formation stays high because of the rising local demand and government support. Entrepreneurial activities for mAb continue to prosper. In addition, the situation of resource supply has been improved with the support of the State.ConclusionsThis study finds that a complete innovation system for mAb has begun to take shape in China. MAb innovators in China are capitalizing on this emerging technological opportunity to participate in the global drive of developing the value chain for the innovative drug. In the long run, the build-up of the research system for mAb in China could bring about more driving forces to the mAb innovation system.
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