Learning from R&D outsourcing vs. learning by R&D outsourcing

We analyze how research and development (R&D) outsourcing influences product innovation. We propose a separation between learning from R&D outsourcing, whereby the firm improves its ability to innovate by using outsourced R&D directly in new products, from learning by R&D outsourcing, whereby the firm indirectly uses outsourced R&D by integrating it with internal R&D to create new products. Building on the knowledge-based view, we argue that learning from R&D outsourcing is likely to have an inverse U-shaped relationship with product innovation, because the initial benefits of using outsourced component R&D knowledge to innovate products is eventually outweighed by the hollowing out of the firm's ability to innovate. In contrast, we propose that learning by R&D outsourcing is likely to have a U-shaped relationship with product innovation, because the initial challenges of integrating internal and external R&D are eventually overcome, resulting in more innovations. Finally, we distinguish between domestic and foreign R&D outsourcing and propose a liability of foreignness in R&D outsourcing as it has a lower impact on new products than domestic R&D outsourcing. The empirical analysis shows that outsourced R&D has an inverted U-shaped relationship with the number of new products, while the interaction between outsourced R&D and internal R&D has a U-shaped relationship with the number of new products. It also shows that domestic outsourced R&D has a higher positive impact on the number of new products than foreign outsourced R&D.Ministry of Economy and Competitiveness of Spain (Grant: ECO2015-67296-R, MINECO/FEDER, UE), the Community of Madrid and the European Social Fund (S2015/HUM-3417 and INNCOMCON-CM) for their support of this project. Finally, for financial support, Un thanks the D'Amore-McKim School of Business of Northeastern University for the Strategic Summer Research Award, and Rodriguez thanks the Ramon Areces Foundation CISP15A3196

La internacionalización de los servicios intensivos en conocimiento : cooperación, innovación e implicaciones del "offshoring" de I+D

En este marco, el presente trabajo de investigación está guiado por dos objetivos básicos: 1. Adquirir un mayor conocimiento de los procesos de internacionalización e innovación de los servicios intensivos en conocimiento y analizar las potenciales interrelaciones entre la cooperación, innovación e internacionalización de las empresas de servicios intensivos en conocimiento. 2. Comprender el fenómeno del offshoring de servicios basados en el conocimiento. Y, especialmente, entender y vislumbrar cómo el offshoring de I+D puede influir en la capacidad innovadora de las empresas, así como en su crecimiento en términos de ventas y alcance de la expansión internacional. Asimismo, se pretende dilucidar las diferentes implicaciones de los distintos modos de gobierno de offshoring de I+D en función del objetivo estratégico perseguid

Does R&D offshoring lead to SME growth? Different governance modes and the mediating role of innovation

In this article, we address the role of R&D offshoring strategies in the sales growth of small - and medium-sized enterprises (SMEs). We propose that different governance modes of R&D offshoring - insourcing versus outsourcing - may lead to growth, but that they differ in their effects. In turn, we argue that innovation mediates the relation between international R&D sourcing strategies and sales growth. Based on a large database of SME manufacturing enterprises in Spain, we find that offshore outsourcing positively affects sales growth both directly and indirectly, while offshore insourcing only affects sales growth indirectly via innovation results. The analysis reveals different contributions of each governance mode to sales growth and the mediating role of innovation in the relation between R&D offshoring and firm growth

International R&D sourcing, innovation and firm age: The advantage of 'born-international sourcers'

We study how international knowledge sourcing affects the innovation performance of firms of different ages (from inception to mature). Specifically, we analyze (i) the contribution of international R&D sourcing to product innovations having a high degree of novelty- i.e. products that are new to the market; and (ii) the moderating role of firm age in this relationship. In doing so, we contrast two arguments that have created a debate in the literature: One is that experience plays a key role in successfully managing the inherent complexity of offshoring; another is that firms internationalizing at an early stage enjoy the learning advantages of newness. Based on a panel of over 9000 firms based in Spain spanning from 2008 to 2016, our findings indicate that international R&D sourcing is positively related to product innovations having a high degree of novelty, and that firm age exerts a negative moderating effect on the international R&D sourcing-innovation relationship. These results allow us to conclude that the innovation benefits of internationalizing the acquisition of knowledge are greater for younger firms. We identify the advantage of firms performing international R&D sourcing during their early stages and introduce the concept of "born-international sourcers" to identify firms that engage in international sourcing strategies from an early stage.This project was funded by the Government Research Agency of Spanish Ministry of Science and Innovation (PID2019-106874GB-I00/AEI/10.13039/501100011033). This work is developed with the support of Madrid Government (Comunidad de Madrid-Spain) with the project Excellence of University Professors (EPUC3M20) in the context of the V PRICIT (Regional Programme of Research and Technological Innovation). Funding for APC: Universidad Carlos III de Madrid (Read & Publish Agreement CRUE-CSIC 2022

International and domestic external knowledge in the innovation performance of firms from transition economies: The role of institutions

In this study, we analyze how the acquisition of domestic and international external knowledge contributes to the innovation performance of firms in transition economies and how the institutional conditions of the home country may affect these relations. We test our hypotheses via the responses of 645 firms from 18 Central and Eastern European countries. Our findings show that both external knowledge sources—domestic and international— contribute positively to the number of new products in transition economies. Our results also indicate that a country’s governance imperfections positively moderate the relations between both domestic and international external knowledge and the number of new products. Additionally, our findings highlight that the benefits of international external knowledge for product innovation are greater in contexts with weaker institutional conditions than in environments with stronger institutional conditions. In contrast, the benefits of domestic external knowledge for product innovation do not vary substantially between scenarios with stronger institutional conditions and those with weaker ones. These findings lead us to conclude that the institutional conditions of transition economies moderate the relation between domestic and international external knowledge and innovation performance differently, with international external knowledge proving particularly valuable for product innovation when these conditions are weak.This project was partially funded by the Government Research Agency of Spanish Ministry of Science and Innovation (PID2019–106874 GB-I00/AEI/10.13039/501100011033). This work is developed with the support of Madrid Government (Comunidad de Madrid-Spain) with the project Excellence of University Professors (EPUC3M20) in the context of the V PRICIT

Failed and successful innovations: The role of geographic proximity and international diversity of partners in technological collaboration

We aim to clarify the role of research partnerships on the success and failure of innovation projects by examining the geographic proximity and diversity of partners. First, we argue that collaboration with geographically near partners will contribute relatively more to innovation success than it does to innovation failure, while collaboration with geographically distant partners will contribute relatively more to innovation failure than it does to innovation success. Second, we postulate that lower levels of international diversity will contribute relatively more to innovation success than it does to innovation failure, while higher levels of international diversity will contribute relatively more to innovation failure than it does to innovation success. Using a large dataset of firms for the period 2008–2013, we perform a joint analysis of failed and successful innovations. Our empirical findings support our theoretical arguments. Our results highlight the relevance of studying both failed and successful innovations and the importance of knowing their determinants to manage the innovation process successfully. Moreover, our findings should alert managers to the importance of geographic location when choosing collaboration partners. It is noteworthy that beyond a certain threshold, international diversity begins to act as a brake on innovation success and to increase the likelihood of failure.This project was funded by the Government Research Agency of Spanish Ministry of Science and Innovation (PID2019-106874GB-I00/AEI/10.13039/501100011033) and Spanish Ministry of Economy and Business (ECO2017-87514-P). All authors have contributed equally to this paper

International collaboration and innovation in professional and technological knowledge-intensive services

In this paper, we explore the impact of international collaboration on innovation in technological and professional knowledge-intensive business services. We propose that the benefits of international collaboration differ depending on the activity sector and the location of the foreign partner. Specifically, we argue that the nature of knowledge and innovation processes in professional and technological knowledge-intensive business services may explain different effects of international collaboration on innovation performance. Our empirical analysis is based on a large sample of knowledge-intensive business services for the period 2004-2007. We specify two bivariate probit models to test our hypotheses. The results confirm the hypotheses and show that proximity to international partners is more important for professional knowledge-intensive services, while diversity in international collaboration is more important for technological knowledge-intensive services.This project was funded by the Ministry of Economy and Competitiveness (ECO2015-67296-R, MINECO/FEDER, UE), and the Community of Madrid and the European Social Fund (S2015/HUM-3417, INNCOMCON-CM). Rodríguez thanks Ramón Areces Foundation for financial support.Publicad

International sourcing and the productivity of SMEs in transition countries: Formal and informal "region effects" and the communist footprint

We study how SMEs in transition countries can boost productivity by sourcing inputs from regions with which they share formal institutional links (the European Union) or informal links (the former communist bloc). Additionally, we discuss how the length of the communist footprint may modify these productivity gains. Using a sample of SMEs located in Eastern Europe, we find a positive relation between firm productivity and inputs from regions with formal and informal institutional links. We also find that this positive relation is weaker for firms with longer communist footprints that source inputs from EU countries.We thank the Associate Editor, Professor Debmalya Mukherjee, and the two anonymous reviewers for their helpful comments and suggestions. The manuscript has also benefited from the comments by participants and reviewers of the 46th EIBA Annual Conference on an earlier version of this paper. This project was funded by the Government Research Agency of Spanish Ministry of Science and Innovation (PID2019-106874GB-I00/AEI/10.13039/501100011033). This work is developed with the support of Madrid Government (Comunidad de Madrid-Spain) with the project Excellence of University Professors (EPUC3M20) in the context of the V PRICIT (Regional Programme of Research and Technological Innovation). All authors have contributed equally to this paper

Home country institutions and exports of firms in transition economies: Does innovation matter?

We draw on institutional theory and the resource-based view to analyze the relation between home-country governance imperfections and the export intensity of firms in transition economies, including an examination of the moderating role of innovation. We propose that greater governance imperfections result in lower export intensity and that innovation mitigates the constraints of operating with weak home-country institutions. Analyses of panel data from the Business Environment and Enterprise Performance Survey (BEEPS) on firms from transition economies provide support for our arguments. Our findings allow us to conclude that although firms from transition economies face difficulties to export due to the regulatory constraints of their home countries, a strategy based on innovation represents a viable way of overcoming these limitations.We thank the Associate Editor, Roberto Vassolo, the two anonymous reviewers and Grigorios Asimakopoulos for their helpful comments and suggestions. This project was partially funded by the Government Research Agency of Spanish Ministry of Science and Innovation (PID2019-106874 GB-I00/AEI/10.13039/501100011033). This work is developed with the support of Madrid Government (Comunidad de Madrid-Spain) with the project Excellence of University Professors (EPUC3M20) in the context of the V PRICIT. Authors appear in alphabetical order.Publicad