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Innovation, Recombination and Technological Proximity

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  • Grazia Cecere
  • Muge Ozman

Abstract

This article investigates the relation between recombinative capabilities, innovation and alliance strategies for 71 firms in the Information Communication Technologies (ICT) sector, through a panel data analysis. In particular, it explores the impact of two factors on innovation. The first is the recombinative capabilities of firms, which are measured by the breadth of their patents. The second is their alliance strategies, which are measured in terms of technological proximity with partners. The results reveal that recombinative capabilities increase innovative output. However, there is a limit to this positive effect. Beyond this limit, recombinative capabilities reduce innovation intensity. In other words, after a threshold, the wider is the breadth of the firm’s patents, the less is the number of them. This relationship also depends on the technological proximity with alliance partners. High recombinative capabilities are best complemented by technologically proximate alliance partners, who permit refinements in existing domains, without augmenting costs of variety management. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Grazia Cecere & Muge Ozman, 2014. "Innovation, Recombination and Technological Proximity," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(3), pages 646-667, September.
    • Handle: RePEc:spr:jknowl:v:5:y:2014:i:3:p:646-667
    DOI: 10.1007/s13132-014-0209-4
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    Cited by:

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    2. Zafer Sonmez, 2018. "Interregional inventor collaboration and the commercial value of patented inventions: evidence from the US biotechnology industry," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 399-438, September.
    3. Grazia Cecere & Sascha Rexhäuser & Patrick Schulte, 2019. "From less promising to green? Technological opportunities and their role in (green) ICT innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(1), pages 45-63, January.
    4. Mafini Dosso & Antonio Vezzani, 2015. "Top R&D investors and international knowledge seeking: the role of emerging technologies and technological proximity," JRC Working Papers on Corporate R&D and Innovation 2015-09, Joint Research Centre.
    5. Morgan, Todd & Obal, Michael & Anokhin, Sergey, 2018. "Customer participation and new product performance: Towards the understanding of the mechanisms and key contingencies," Research Policy, Elsevier, vol. 47(2), pages 498-510.
    6. Michalis E. Papazoglou & Jen Nelles, 2023. "Keeping Pace with Technological Change: Insights into the Recency of Internal Knowledge Inputs," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 3724-3740, December.
    7. Guo, Min & Yang, Naiding & Wang, Jingbei & Zhang, Yanlu & Wang, Yan, 2021. "How do structural holes promote network expansion?," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    8. Mohammad Reza Jalilvand & Leila Nasrolahi Vosta & Rashid Khalilakbar & Javad Khazaei Pool & Reihaneh Alsadat Tabaeeian, 2019. "The Effects of Internal Marketing and Entrepreneurial Orientation on Innovation in Family Businesses," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(3), pages 1064-1079, September.

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