R&D STRATEGIES AND FIRM INNOVATIVE PERFORMANCE: A PANEL DATA ANALYSIS

Abstract

y bayona@unavarra.es z tgmarco@unavarra.esThe aim of this research is to ascertain the effects of the different R&D strategies (RDSs)defined as make, buy and make-buyon firm innovative performance. In order to evaluate RDSs effects in a broader sense, and looking for robust results, we consider different measures of product and/or process innovations as indicators of firm innovative performance. Using panel data models for a sample of 1478 Spanish manufacturing firms during the period 1992-2005, we observe that all RDSs produce a positive influence over all innovation outputs, although the impact is greater for the make-buy strategy and lower for the buy strategy. These effects are conditional on temporality since the greatest impact occurs one year later and that in the second year is reduced to half. Results show that the buy strategy seems to have only short-term effects, whereas the make-buy effects are greater and last longer. In addition, we find empirical support for our proposed argument that RDS effects on firm innovativeness are moderated by technological intensity level.

Open innovation in the food and beverage industry

“…Some studies (Chen and Yuan, 2007; Santamaría et al , 2009) argue that the acquisition of R&D and technology is less effective than the in-house or combined (in-house and external) strategies when achieving product and process innovations, and it sometimes has a negative impact (Jones et al , 2001; Fey and Birkinshaw, 2005). Cruz-Cázares et al (2010) find that in low-technology-intensity sectors, such as the FnB industry, total reliance on external R&D has a positive effect on process innovations but not on product innovations. However, they show that when combined with in-house R&D, it has a positive effect on both types of innovation.…”

The effects of internal and external innovation strategies on process innovation in Vietnamese firms

“…Various ES items are selected to calculate RIQ using a five-point scale, including regulatory quality, the rule of law and corruption. Firm size and firm age are used as control variables as they are common in previous studies (Cruz-C azares et al, 2010;Barasa et al, 2017). The question used to determine size is: "how many permanent, full-time individuals work in this establishment?"…”

“…It is now well-established from various studies that firms can follow different strategies to innovate (Cruz-C azares et al, 2010;Goedhuysa and Veugelers, 2012). By choosing an internal innovation strategy, firms internalize their specific R&D activities and commercialize them through internal development, manufacturing and distribution (Chesbrough, 2017).…”

Examining the Impact of Innovation Forms on Sustainable Economic Performance: The Influence of Family Management

“…This embraces all R&D performed by the firm, including basic research. The importance of intramural R&D as an engine of innovations is unquestionable [28,35], since it enables more fluid communication between the different departments involved, creates firm-specific knowledge and generates absorptive capacity, which favors greater economies of scale and minimizes transaction costs [36][37][38]. However, these beneficial effects can be counterbalanced by less predictable and riskier outcomes, as well as by a higher probability of remaining isolated in a particular technological development [39,40].…”

“…Extramural R&D provides firms the opportunity to minimize the risk associated with such investments through its a priori calculation, increases the speed of access to new knowledge and gives solutions to capacity problems [43]. Nevertheless, these activities also entail increased transaction costs, the emergence of opportunistic behaviors by R&D partners, and other problems of external dependence, functional disparities, and coordination with them, which could jeopardize the firms' capacity to conduct innovations, and thus, reduce its impact on long-term performance [37,44].…”