Technology In‐Sourcing and the Creation of Pioneering Technologies

Vrande, van de Vja Vareska; Vanhaverbeke, Wim; Duysters, Geert

doi:10.1111/j.1540-5885.2011.00853.x

Cited by 66 publications

(40 citation statements)

References 64 publications

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“…In contrast, the market enables firms to access unique resources (knowledge) not available inside the hierarchy that can be combined with internal knowledge to form a firm-specific resource that can serve as an isolating mechanism (Teece, 2006;Van de Vrande, Vanhaverbeke, and Duysters, 2011;Wang, He, and Mahoney, 2009). The market is ideally suited to handle problems of low complexity when knowledge is more explicit and sharing is easy (Nickerson and Zenger, 2004).…”

Section: Market and Hierarchies As Knowledge Governance Mechanismsmentioning

confidence: 99%

The Paradox of Openness: How Product and Patenting Experience Affect R&D Sourcing in China?

Wang¹,

Libaers²,

Park³

2016

J of Product Innov Manag

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External R&D sourcing may help firms compete in an environment characterized by rapid technological changes. Yet, prior studies have produced conflicting findings on how a firm's technological experience affects the extent to which the firm engages in external R&D sourcing. Although many highlight that firms with extensive technological experience are equipped with more technological knowledge, collaborative skills, and absorptive capacity, encouraging greater levels of external R&D, others suggest the opposite due to potential exchange hazards and partnership conflicts. Adopting an external partner's perspective, the current study reconsiders this “paradox of openness” by analyzing how a focal firm's product experience and patenting experience affect an external partner's tendency to provide external R&D services to the focal firm. Specifically, this study explore how a focal firm's knowledge protectiveness and tacitness embedded in its product and patenting experience influences the external partners' motivation for knowledge transfer. This study predicts that a firm's product experience increases the focal firm's external R&D sourcing because it provides high levels of knowledge tacitness and external openness and can encourage external partners to share and exchange knowledge with the focal firm. In contrast, a firm's patenting experience decreases the focal firm's external R&D sourcing because it denotes knowledge explicitness and protectiveness and may discourage external partners to share and exchange knowledge with the focal firm. This study further predicts that patenting experience has a negative moderating effect on the relationship between product experience and external R&D sourcing. Using a data set of 575 high‐tech firms in China, this study finds support for our predictions. Our findings contribute to the growing literature on the knowledge‐based view and technology entrepreneurship in emerging markets.

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Section: Market and Hierarchies As Knowledge Governance Mechanismsmentioning

confidence: 99%

The Paradox of Openness: How Product and Patenting Experience Affect R&D Sourcing in China?

Wang¹,

Libaers²,

Park³

2016

J of Product Innov Manag

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show abstract

“…2 This contrasts with the significant interest that has been shown in how acquisitions of developed market MNEs may feed back into innovation performance (Cloodt, Hagedoorn, & Van Kranenburg, 2006;Van de Vrande, Vanhaverbeke, & Duysters, 2011).…”

Section: Innovation Performance In the Home And Host Marketmentioning

confidence: 99%

An event study of home and host country patent generation in Chinese MNEs undertaking strategic asset acquisitions in developed markets

Anderson

Sutherland

Severe

2015

International Business Review

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Publisher's copyright statement: NOTICE: this is the author's version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reected in this document. Changes may have been made to this work since it was submitted for publication. A denitive version was subsequently published in International Business Review, 24, 5, October 2015, 10.1016/j.ibusrev.2015.01.007. Additional information:Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. ABSTRACTWe use event study methodologies to analyze trends in home and host country patent applications of Chinese MNEs that acquire strategic asset-rich developed market businesses. Our results show the domestic market patents of Chinese MNEs rise significantly in the wake of such acquisitions, while those of the acquired target do not significantly change. These results hold for different ownership classes. In light of current theoretical debates, we discuss the possible motivations for such acquisitions by Chinese MNEs and the reasons for the observed patenting performance in both domestic and target businesses. We argue acquisition of codified strategic assets (such as patents) for the purpose of imitation and exploitation in the domestic Chinese market context provides one plausible explanation for our results.

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“…Although many alliances fail to produce their desired outcomes (Laroia and Krishnan, 2005), they are mostly positively associated with product innovation (Deeds and Hill, 1996;Un, Cuervo-Cazurra, and Asakawa, 2010) and firm performance (De Man and Duysters, 2005). In particular, these effects have been found in the biopharmaceutical industry (Arora, Gambardella, Magazzini, and Pammolli, 2009;Danzon, Nicholson, and Sousa Pereira, 2005;Rothaermel and Deeds, 2004;Van de Vrande, Vanhaverbeke, and Duysters, 2011). According to Collins and Hitt (2006), drugs produced by alliances are 30% more likely to succeed in obtaining a Food and Drug Administration (FDA) approval, and nearly one third of newly marketed biopharmaceutical products seem to be developed through alliances.…”

Section: Dimension 2: Strategic Alliancesmentioning

confidence: 99%

Biotechnology Commercialization Strategies: Risk and Return in Interfirm Cooperation

Fernald¹,

Pennings²,

Claassen³

2014

J of Product Innov Manag

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The management and exploitation of biotechnological product innovation have proven to be more difficult than initially expected because the number of currently marketed biotechnological products is far from sufficient to counter deficits in pharmaceutical innovation. This study provides insight into the role of governance structures in interfirm cooperation and their effects on biotechnological product innovation and company success. Most of the existing literature regarding alliances and mergers and acquisitions (M&A) examines their effects on technology recipients' innovation performance. Here, the effects of alliances and M&A on both the innovation success and financial performance of technology suppliers (i.e., sources) are examined. Drawing from a sample of 220 human therapeutic biotechnology and biopharmaceutical firms over a period of 32 years (1980–2011), an analysis of the effects of biotechnology clusters, strategic alliances, and acquisitions is provided. This study reveals the existence of a risk‐return trade‐off for strategic alliances between biotech companies and larger, more established firms. Increased biotech company involvement in product development alliances decreases risk by increasing the likelihood of future product introductions. The trade‐off, however, is that biotech companies earn lower returns when their products are developed through such alliances. A similar risk‐return trade‐off effect is found for clusters. However, acquisitions generally affect both product introductions and product returns in a negative way. These findings have strategic implications not only for managing the development of biotechnological product innovations and technology platforms but also for commercialization strategies with respect to interfirm cooperation and risk reduction.

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Technology In‐Sourcing and the Creation of Pioneering Technologies

Cited by 66 publications

References 64 publications

The Paradox of Openness: How Product and Patenting Experience Affect R&D Sourcing in China?

The Paradox of Openness: How Product and Patenting Experience Affect R&D Sourcing in China?

An event study of home and host country patent generation in Chinese MNEs undertaking strategic asset acquisitions in developed markets

Biotechnology Commercialization Strategies: Risk and Return in Interfirm Cooperation

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