Innovation collaboration and appropriability by knowledge-intensive business services firms

We uncover a “paradox of formal appropriability mechanisms” in the case of knowledge-intensive business services (KIBS) firms. Despite evidence that KIBS firms do not typically consider formal appropriability mechanisms, such as patents, to be central mechanisms for capturing value from innovation, we show that they are nevertheless important for their innovation collaboration. Drawing on an original survey of publicly-traded UK and US KIBS firms, we find a significant positive association between the importance of innovation collaboration and the importance of formal appropriability mechanisms. We interrogate the evidence for clients, as they are the most important partners for innovation collaboration. We find that the importance of innovation collaboration with clients goes hand-in-hand with the importance of formal appropriability mechanisms, although a negative relation appears when firms assign very high importance to formal appropriability mechanisms. Thus, modest levels of emphasis on formal appropriability mechanisms may prevent conflicts over ownership of jointly developed knowledge assets and knowledge leakages, while also avoiding the possibly negative effects of overly strict controls by legal departments on innovation collaboration. As well as exploring formal appropriability mechanisms, we also investigate the relationship between contractual and strategic appropriability mechanisms and innovation collaboration for KIBS firms

Capturing value from innovation in knowledge-intensive business service firms: the role of competitive strategy

Building on a problem-solving perspective to value creation and capture, and on the business strategy literature, we argue that the actions that knowledge-intensive business service (KIBS) firms take to identify, select and solve client problems will affect their approach to capturing value from innovation. We apply regression analysis to data from an original survey involving a sample of 230 innovations introduced by 150 publicly-traded UK and US KIBS firms. Distinguishing between cost- and differentiation-oriented KIBS firms, we find that cost-oriented firms tend to place more importance on all appropriability mechanisms than do differentiation-oriented firms. Furthermore, the perceived importance of formal appropriability mechanisms, relative to that of all appropriability mechanisms, tends to be higher for cost-oriented than for differentiation-oriented firms. This association is stronger for the case of the introduction of process (rather than product) innovation. These findings contribute to the strategy and service innovation literatures, by showing that KIBS firms’ competitive strategies influence value capture, over and above the role of the innovation-, industry-, and institutional-level factors examined in earlier studies

The Network Analysis of Urban Streets: A Primal Approach

The network metaphor in the analysis of urban and territorial cases has a long tradition especially in transportation/land-use planning and economic geography. More recently, urban design has brought its contribution by means of the "space syntax" methodology. All these approaches, though under different terms like accessibility, proximity, integration,connectivity, cost or effort, focus on the idea that some places (or streets) are more important than others because they are more central. The study of centrality in complex systems,however, originated in other scientific areas, namely in structural sociology, well before its use in urban studies; moreover, as a structural property of the system, centrality has never been extensively investigated metrically in geographic networks as it has been topologically in a wide range of other relational networks like social, biological or technological. After two previous works on some structural properties of the dual and primal graph representations of urban street networks (Porta et al. cond-mat/0411241; Crucitti et al. physics/0504163), in this paper we provide an in-depth investigation of centrality in the primal approach as compared to the dual one, with a special focus on potentials for urban design.Comment: 19 page, 4 figures. Paper related to the paper "The Network Analysis of Urban Streets: A Dual Approach" cond-mat/041124

Sourcing technological knowledge through corporate acquisition:Evidence from an international sample of high technology firms

We investigate the prevalence of the motive to source technological knowledge externally through corporate acquisition. Drawing on make-or-buy and organizational learning theories, we infer the implications of this explanation for the acquirers' pre-acquisition innovative characteristics. Using an international sample of 6106 high technology acquisitions during 1984–2000, we assess the contribution of innovative characteristics to the acquisition likelihood. For firms acquiring small private firms and former subsidiaries—but not public targets—the evidence is consistent with three propositions: (1) A firm's commitment to internal R&D is negatively affected by the decision to acquire; (2) Low R&D productivity increases the likelihood of acquisition; (3) A large knowledge stock predisposes firms to acquire because they perceive they are capable of selecting and absorbing targets. We conclude that acquisitions of small private firms and former subsidiaries are a viable R&D strategy to explore a range of potential future innovation trajectories for large public firms