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|Title:||Absorptive capacity and innovation: When is it better to cooperate?|
|Publisher:||Springer New York LLC|
|Citation:||Egbetokun A. Absorptive capacity and innovation: When is it better to cooperate? / A. Egbetokun, I. Savin. — DOI 10.1007/s00191-014-0344-x // Journal of Evolutionary Economics. — 2014. — Vol. 24. — Iss. 2. — P. 399-420.|
|Abstract:||Cooperation can benefit and hurt firms at the same time. An important question then is: when is it better to cooperate? And, once the decision to cooperate is made, how can an appropriate partner be selected? In this paper we present a model of inter-firm cooperation driven by cognitive distance, appropriability conditions and external knowledge. Absorptive capacity of firms develops as an outcome of the interaction between absorptive R&D and cognitive distance from voluntary and involuntary knowledge spillovers. Thus, we offer a revision of the original model by Cohen and Levinthal (Econ J 99(397):569-596, 1989), accounting for recent empirical findings and explicitly modeling absorptive capacity within the framework of interactive learning. We apply that to the analysis of firms' cooperation and R&D investment preferences. The results show that cognitive distance and appropriability conditions between a firm and its cooperation partner have an ambiguous effect on the profit generated by the firm. Thus, a firm chooses to cooperate and selects a partner conditional on the investments in absorptive capacity it is willing to make to solve the understandability/novelty trade-off. © 2014 Springer-Verlag Berlin Heidelberg.|
|Appears in Collections:||Научные публикации, проиндексированные в SCOPUS и WoS CC|
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