Determinants and Consequences of R&D Strategy Selection

Abstract

Nowadays firms are not able to achieve all innovation in-house due to the specific set of technologies required by most products and processes, obliging firms to access external knowledge. In this context, the aim of this chapter is two-fold with the final goal of increasing our knowledge on firm innovating behavior. First, this chapter analyzes the determinants of the R&D strategy (RDS) selection posting the make, buy and make-buy as the three RDSs. Second, this chapter analyzes the consequences that each of the RDSs has on firm innovativeness. Results show that commercial and organizational resources, jointly with the information sources, influence the selection of the strategy. As for the second part of the analysis, we see that all RDSs have positive effects on firm innovative performance but these effects are not straightforward and simple since they vary depending on firm´s type and on the radicalness of the innovation achieved.