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The innovative performance of firms in heterogeneous environments : the interplay between external knowledge and internal absorptive capacities

Crescenzi, Riccardo and Gagliardi, Luisa (2018) The innovative performance of firms in heterogeneous environments : the interplay between external knowledge and internal absorptive capacities. Research Policy, 47 (4). pp. 782-795. ISSN 0048-7333

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Identification Number: 10.1016/j.respol.2018.02.006


This paper investigates the link between firm-level innovative performance and innovation prone external environments where knowledgeable individuals tend to cluster. Organizational ambidexterity and absorptive capacities (potential and realized) make it possible for firms to leverage the availability of external knowledge and boost their innovation performance. The empirical analysis focuses on England and is based on a novel combination of Community Innovation Survey (CIS) firm-level data and patent data. The results show that only firms complementing potential and realized absorptive capacities are able to take advantage of favorable external environments by actively combining internal and external sources of knowledge.

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Additional Information: The research leading to these results has received funding from the European Union Seventh Framework Programme FP7/2007-2013 under grant agreement No SSHsingle bondCT-2010-266959; Project PICK-ME. The authors would like to thank the participants to the DRUID Conference 2017 in New York, the Spatial Economics Research Centre (SERC)–LSE seminars, the Eurolio Conference in Saint Etienne (France), the OECD − Regional Development Programme Internal Seminars in Paris, the Barcelona Workshop on Regional and Urban Economics, the ONS Secure Data Service Workshop in London, the IC10 2014 Workshop in Paris, the Seminars in Economics of Science and Engineering at the Harvard Business School and the joint World Bank/Inter-American Development Bank Brown Bag Lunch (BBL) series for comments and suggestions. The authors are solely responsible for any errors contained in the article. © 2018 The Author(s). Published by Elsevier B.V.
Divisions: Geography & Environment
Spatial Economics Research Centre
Subjects: H Social Sciences > HB Economic Theory
Sets: Departments > Geography and Environment
Research centres and groups > Spatial Economics Research Centre
Date Deposited: 13 Mar 2018 10:47
Last Modified: 20 Jan 2021 02:21
Projects: SSH-CT-2010-266959
Funders: European Union Seventh Framework Programme FP7/2007-2013

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