R&D Team's Competencies, Innovation, and Growth With Knowledge Information Flow

This paper analyzes the interaction among the step-by-step innovation, the product market competition (PMC), and the knowledge information flow in the growth process. Patents protect their holders from being imitated or copied but do not protect them against the possibility that less-efficient competitors master the diffused knowledge. The degree to which diffused knowledge should be exploited by less-efficient firms is determined by both their knowledge assimilating capacities and Research and Development (R&D) teams' competence type and level. The individual skill distribution in R&D team may lead to different innovative behaviors: replicating the knowledge or creation of novel knowledge. Here, we first find that replicating the knowledge and creation of novel knowledge are both growth enhancing; second, the more the flexibility on individual creativity in R&D team is, the faster is the growth; third, the knowledge information flow has a polarization effect on firms' innovative performance.

[1]  W. Marsden.  I and J , 2012 .

[2]  Aaas News,et al.  Book Reviews , 1893, Buffalo Medical and Surgical Journal.

[3]  Teresa M. Amabile,et al.  A Model of Creativity and Innovation in Organizations , 1988 .

[4]  A. Scott,et al.  Ann Arbor , 1980 .

[5]  F. Verbeeten.  New’ Performance Measures: Determinants of Their Use and Their Impact on Performance , 2005 .

[6]  Hans J. Thamhain,et al.  Managing Innovative R&D Teams , 2003 .

[7]  Howard Davies,et al.  TECHNOLOGY TRANSFER THROUGH COMMERCIAL TRANSACTIONS , 1977 .

[8]  Ellen Enkel,et al.  Creative Tension in the Innovation Process: How to Support the Right Capabilities , 2007 .

[9]  Toshihiko Mukoyama.  Diffusion and Innovation of New Technologies under Skill Heterogeneity , 2004 .

[10]  R. Rosenfeld,et al.  Innovation , 2012, A World Connected.

[11]  Simone Campanoni.  Competition , 1866, Nature.

[12]  S. Scotchmer,et al.  Standing on the Shoulders of Giants: Cumulative Research and the Patent Law , 1991 .

[13]  James J. Anton,et al.  Little patents and big secrets: managing intellectual property , 2004 .

[14]  C. Ford.  Interpretive Style, Motivation, Ability and Context as Predictors of Executives’ Creative Performance , 1999 .

[15]  Zvi Griliches,et al.  Issues in Assessing the Contribution of Research and Development to Productivity Growth , 1979 .

[16]  G. Grossman,et al.  Innovation and growth in the global economy , 1993 .

[17]  B. Kogut,et al.  Knowledge and the Speed of the Transfer and Imitation of Organizational Capabilities: An Empirical Test , 1995 .

[18]  Edwin A. Gerloff,et al.  Organizational environment, changing economic conditions, and the effective supervision of technical personnel , 1999 .

[19]  D. Leonard-Barton.  CORE CAPABILITIES AND CORE RIGIDITIES: A PARADOX IN MANAGING NEW PRODUCT DEVELOPMENT , 1992 .

[20]  E. Rogers,et al.  Diffusion of innovations , 1964, Encyclopedia of Sport Management.

[21]  Claudio R. Frischtak,et al.  International Technology Transfer: Concepts, Measures, and Comparisons , 1985 .

[22]  D. B. Montgomery,et al.  First-mover (dis)advantages: Retrospective and link with the resource-based view , 1998 .

[23]  Todd Dewett,et al.  Linking Intrinsic Motivation, Risk Taking, and Employee Creativity in an R&D Environment , 2007 .

[24]  Hugo Hollanders,et al.  Technology, knowledge spillovers and changes in employment structure: evidence from six OECD countries , 2002 .

[25]  C. Freeman,et al.  The Economics of Industrial Innovation - 3rd Edition , 1997 .

[26]  Daron Acemoglu,et al.  Productivity Differences , 1999 .

[27]  Sucheta Nadkarni,et al.  STRATEGY FRAMES, STRATEGIC FLEXIBILITY AND FIRM PERFORMANCE: THE MODERATING ROLE OF INDUSTRY CLOCKSPEED. , 2004 .

[28]  Jan Boone,et al.  Intensity of competition and the incentive to innovate , 2001 .

[29]  J. Vickers,et al.  Competition, Imitation and Growth with Step-by-Step Innovation , 2001 .

[30]  P. Segerstrom.  Innovation, Imitation, and Economic Growth , 1991, Journal of Political Economy.

[31]  Drew Fudenberg,et al.  Game theory (3. pr.) , 1991 .

[32]  B. Kogut,et al.  Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology , 1992 .

[33]  R. Chenhall.  Management control systems design within its organizational context: findings from contingency-based research and directions for the future , 2003 .

[34]  F. Damanpour.  Organizational Innovation: A Meta-Analysis Of Effects Of Determinants and Moderators , 1991 .

[35]  Nancy Gallini,et al.  The Economics of Patents: Lessons from Recent U.S. Patent Reform , 2002 .

[36]  Elhanan Helpman,et al.  International R&D spillovers , 1995 .

[37]  H. Hollanders,et al.  Knowledge spillovers and wage inequality: an empirical analysis of Dutch manufacturing , 2001 .

[38]  Philippe Aghion,et al.  Competition and growth with step-by-step innovation: An example , 1997 .

[39]  P. Romer.  Endogenous Technological Change , 1989, Journal of Political Economy.

[40]  J. Vickers,et al.  A Model of the Evolution of Duopoly: Does the Asymmetry between Firms Tend to Increase or Decrease? , 1993 .

[41]  Ricky W. Griffin,et al.  Toward a Theory of Organizational Creativity , 1993 .

[42]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[43]  John R. Anderson,et al.  The Transfer of Cognitive Skill , 1989 .

[44]  HERBERT A. SIMON,et al.  The Architecture of Complexity , 1991 .

[45]  Toshihiko Mukoyama,et al.  Innovation, imitation, and growth with cumulative technology , 2003 .

[46]  Robert W. Ruekert,et al.  Upper management control of new product development projects and project performance , 2002 .

[47]  D. Ulph,et al.  Catching Up or Leapfrogging? The Effects of Competition on Innovation and Growth , 2005 .