Technological area experience, experience diversity and innovation

Abstract

One conclusion from the knowledge-based view is that firms develop knowledge from experience. This paper examines the conditions under which firms' R&D experiences might have stronger or weaker effects on innovation capabilities. We posit that any potential benefit depends on the nature of this experience. In particular, we look at how technological area experience and experience diversity affects innovation capabilities. We further propose that, in order to leverage their experience, firms need to consider how the interactions of technological area experience and experience diversity affect performance. To test this model, we draw on a data set of 3034 drug development projects undertaken by 30 large pharmaceutical companies between

On strategic choices faced by large pharmaceutical laboratories and their effect on innovation risk under fuzzy conditions

“…Finally, in this paper, we do not take into account time to approval, as in Macher and Boerner (2012) and Garzón-Vico et al (2016), which may be an additional worth considering.…”

“…Drug R&D performance and the variables used to explain this performance vary depending on the approach chosen by those who study the innovation field. Drug performance has been measured in the past as drug approvals, drug R&D submission time or a combination of approvals and failures (Cockburn and Henderson, 2001;Danzon et al, 2005;Macher and Boerner, 2012;Khanna et al 2015;Garzón-Vico et al, 2016). In our paper, the output variable proposed is the global innovation risk level associated with a given large laboratory based on the assessment assigned to the four above-mentioned input variables.…”

Abandoning innovation projects, filing patent applications and receiving foreign direct investment in R&D

“…The literature on innovation failure centers around the intra-organizational performance implications of adverse innovation events. For example, studies have focused on the effects of these events on new product performance (Garzón-Vico et al, 2020;Kim and Miner, 2007;Madsen and Desai, 2010), firm performance (Desai, 2015;Madsen and Desai, 2010), R&D output (Khanna et al, 2016), future failure rates (Garzón-Vico et al, 2016) and exploitation and exploration (Su and McNamara, 2012). The findings report both positive and negative relationships.…”

The Impact of Failure and Success Experience on Drug Development

“…Firms are history-dependent systems and, as such, a firm's experience acts as the basis for the way in which its environment is represented (Daft and Weick, 1984). Consequently, a firm's history affects what its decisionmakers pay attention to, what they do, and thus the future performance of their NPDs (Garzón-Vico, Gibbons, McNamara, & Rosier, 2016;Kraaijenbrink, 2012;Paladino, 2007;Wei, Yi, & Guo, 2014). A firm's experience can affect its performance by directing decision-makers' attention in various ways.…”