Technological breadth and depth of knowledge in innovation: the role of mergers and acquisitions in biotech

Lodh, Suman; Battaggion, Maria Rosa

doi:10.1093/icc/dtu013

Cited by 24 publications

(24 citation statements)

References 95 publications

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“…Technological breadth refers to the variety or scope of technological knowledge areas a firm has explored (Wang and von Tunzelmann, 2000;Katila and Ahuja, 2002;Lodh and Battaggion, 2015). As breadth of technological knowledge has been found to be an important component of organizational learning (Zahra and George, 2002), we assert that it is also a quality that makes licensors attractive to licensees.…”

Section: Licensor Technological Breadthmentioning

confidence: 95%

Why do some patents get licensed while others do not?

Ruckman

McCarthy

2016

Industrial and Corporate Change

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The global licensing market was estimated to be worth $200 billion in 2011 (Alvarez and L opez, 2015) and licensing royalty payments grew at a rate of almost 10% between 1990 and 2003 (Athreye and Cantwell, 2007). At the same time, however, numerous patents remain unlicensed (Gambardella et al., 2007) and many firms have difficulty finding licensing partners (Zuniga and Guellec, 2008; Kani and Motohashi, 2012). Reconciliation of this puzzle is central to the call to better understand why firms choose each other for a licensing agreement (Kim and Vonortas, 2006a; Arora and Gambardella, 2010a). To address this research opportunity, we examine the impact of eight licensor characteristics and four patent characteristics on the ability of a patent owner to be identified and selected by a buyer. In varying and overlapping ways, the firm-level determinants reflect the search and learning capabilities of the licensor, as well as its visibility and attractiveness. The patent-level determinants control for differences in patent quality. Three of the firm-level determinants (licensor prestige, licensor technological depth, and licensor technology breadth) are new to the licensing research literature and allow us to examine how the licensor characteristics act as signals that help licensees to identify , evaluate, and choose a licensor and its patent over licensors with similar patents. While the other determinants have been examined in previous studies, we confirm or refute previous findings using a more sophisticated empirical method of identifying alternate patents.

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Section: Licensor Technological Breadthmentioning

confidence: 95%

Why do some patents get licensed while others do not?

Ruckman

McCarthy

2016

Industrial and Corporate Change

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“…As the similarity in domain knowledge between two firms increases, they become more familiar with each other's knowledge. This increases their relative absorptive capacity (Cohen & Levinthal, 1990;Lane & Lubatkin, 1998), which in turn, makes it easier for them to learn from each other (Diestre & Rajagopalan, 2012;Lane & Lubatkin, 1998;Lodh & Battaggion, 2014;Oxley & Sampson, 2004). However, prior literature has implicitly argued that firms can learn from their alliance partners when their partners possess knowledge in domains that are unfamiliar to them, which implies that learning opportunities decrease as the firms become more similar in domain knowledge.…”

Section: Similarity In Domain Knowledge and Alliance Formationmentioning

confidence: 99%

Role of search for domain knowledge and architectural knowledge in alliance partner selection

Yayavaram

Srivastava

Sarkar

2018

Strategic Management Journal

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Research Summary: The literature on technological alliances emphasizes that search for knowledge drives alliance formation. However, in conceptualizing technological knowledge, prior work on alliances has not made a distinction between domain knowledge—knowledge that firms possess in distinct technological domains—and architectural knowledge—knowledge that firms possess about how to combine elements from different technological domains. We argue that firms seek partners that are similar in domain knowledge to deepen their knowledge, and partners that are dissimilar in architectural knowledge to broaden their knowledge. Our results indicate that the likelihood of alliance formation increases when two firms are similar in domain knowledge and dissimilar in architectural knowledge. Further, our results show that these effects are positively moderated by the degree of decomposability of a firm's knowledge base. Managerial Summary: In dynamic environments, companies need to continually deepen and broaden their technological knowledge, and they often look for alliance partners who can provide them that knowledge. For knowledge deepening, companies are more likely to form alliances with those companies that have expertise in similar technological fields. For knowledge broadening, they are more likely to form alliances with those companies that have expertise in the same technological fields, but have different recipes for combining knowledge from those fields. Furthermore, a company with a modular knowledge base is more likely to seek a partner that has expertise in similar technological fields or whose recipes for combining knowledge from different technological fields are different from the recipes it has.

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“…Regarding technological breadth, it is strongly related to the 'noticeability' of the licensors to the licensees. It is related to the variety and scope of technological areas the firms have dealt with [17,34]. Licensors with a broad technological knowledge base are more adept at disseminating their technologies to external parties.…”

Section: Hypothesis 1 (H1)mentioning

confidence: 99%

Factors Affecting the Outbound Open Innovation Strategies in Pharmaceutical Industry: Focus on Out-Licensing Deal

InSoo

Kim

2019

Journal of Open Innovation: Technology, Market, and Complexity

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The pharmaceutical industry is a high-technology industry that requires a combination of in-depth knowledge from various fields. It is characterized by high cost, high risk and a long-term perspective due to the high level of regulation. In addition, it is known that research and development (R&D) productivity is deteriorating in the industry. Under these conditions, the importance of open innovation strategies has been emphasized. Under an open innovation system, it is essential for firms to develop several dynamic capabilities to effectively manage their resources both internally and externally. Using a systematic framework of dynamic capabilities suggested by previous studies, this study focuses on the determinants affecting firms’ desorptive capacities, which are measured as the number of out-licensing deals, as an indicator for the performance of their outbound innovation. For the analysis, negative binomial regression is employed and inventive capacity and connective capacity are selected as the determinants of the licensors’ desorptive capacity. The results of regression analysis reveal that inventive capacity does not have a significant effect on desorptive capacity and that only connective capacity has a significant positive effect on desorptive capacity.

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Technological breadth and depth of knowledge in innovation: the role of mergers and acquisitions in biotech

Cited by 24 publications

References 95 publications

Why do some patents get licensed while others do not?

Why do some patents get licensed while others do not?

Role of search for domain knowledge and architectural knowledge in alliance partner selection

Factors Affecting the Outbound Open Innovation Strategies in Pharmaceutical Industry: Focus on Out-Licensing Deal

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