Is there complementarity or substitutability between internal and external R&D strategies? |
| |
| Authors: | John Hagedoorn Ning Wang |
| |
| Institution: | a Department of Organization and Strategy and UNU-MERIT, Maastricht University, The Netherlands
b Department of Organization and Strategy, Maastricht University, The Netherlands |
| |
| Abstract: | The various strands of extant empirical research are inconclusive about the complementarity or substitutability between different innovation mechanisms, such as internal and external R&D. Using a panel sample of 83 incumbent pharmaceutical firms covering the period 1986-2000, our empirical analysis suggests that, instead of a clear-cut answer to the question of whether internal and external R&D are complementary or substitutive innovation activities, there appears to be a contingent relationship between internal and external R&D strategies in shaping a firm's innovative output. The results from our study indicate that the level of in-house R&D investments, which is characterized by decreasing marginal returns, is a contingency variable that critically influences the association between internal and external R&D strategies. In particular, internal R&D and external R&D, through either R&D alliances or R&D acquisitions, are complementary innovation activities at higher levels of in-house R&D investments, whereas at lower levels of in-house R&D efforts, internal and external R&D turn out to be substitutive strategic options. |
| |
| Keywords: | Complementarity Substitutability Internal R& D External R& D Innovative output Pharmaceutical industry Biotechnology patents |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
