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Knowledge base combinations and firm growth

Published on Feb 1, 2019in Research Policy5.42
· DOI :10.1016/j.respol.2018.08.009
Markus Grillitsch13
Estimated H-index: 13
(Lund University),
Torben Schubert14
Estimated H-index: 14
(Fraunhofer Society),
Martin Srholec17
Estimated H-index: 17
(Charles University in Prague)
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Abstract
The link between knowledge and firm growth has been a core topic in economics of innovation for a long time. However, despite strong theoretical arguments, empirical evidence remains inconclusive. One important reason for this conundrum may be the failure of standard indicators to capture firm innovation activities comprehensively. We contribute to overcoming this limitation by looking in the knowledge processes that drive variegated forms of innovation and aim thereby to establish a solid relationship with firm growth in more detail. Our arguments draw on the differentiated knowledge base approach, distinguishing between analytical, synthetic, and symbolic knowledge. We measure the three types of knowledge bases with detailed longitudinal linked-employer-employee micro-data from Sweden. Econometric findings based on a very large sample of small and medium-sized firms indicate significantly positive effects of the three knowledge types, and in particular combinations thereof, on firm growth. In addition, we show that not only high-growth but also slow-growth firms benefit immensely from the use of combinatory knowledge bases. We find evidence on a curvilinear relation between knowledge bases and growth of firms. Beyond certain thresholds increasing the knowledge bases further results in decreasing firm growth. Our results remain robust in a wide range of specifications and econometric models.
  • References (95)
  • Citations (1)
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References95
Newest
Published on Jan 1, 2018in Journal of International Business Studies7.72
Torben Schubert14
Estimated H-index: 14
(Lund University),
Elisabeth Baier7
Estimated H-index: 7
,
Christian Rammer21
Estimated H-index: 21
We develop a behavioural framework of bounded rational decision-making under uncertainty to analyse the role of technological dynamism in the firm’s environment for its decision to internationalise innovation. Applying prospect theory, we argue that technological uncertainty in the firm’s environment affects its risk preferences differently depending on its technological capabilities. A key prediction is that firms with low capabilities will internationalise innovation when faced by technologica...
Published on Dec 1, 2017in Small Business Economics3.56
Chun Yang1
Estimated H-index: 1
(VU: VU University Amsterdam),
B.A.G. Bossink14
Estimated H-index: 14
(VU: VU University Amsterdam),
Peter J. Peverelli4
Estimated H-index: 4
(VU: VU University Amsterdam)
Although various streams in the existing literature on the resource-based view (RBV) of the firm argue that firm survival and performance can benefit from a combined use of internal resources, relatively limited empirical evidence is provided that supports this argument. To fill this gap in the literature, in this article, we focus on how combinations of internal resources affect the survival chance of technology-based start-ups by using a unique dataset from a high-tech park in Beijing, China. ...
Published on Oct 20, 2017in Economic Geography6.86
Björn Asheim32
Estimated H-index: 32
(University of Stavanger),
Markus Grillitsch13
Estimated H-index: 13
(Lund University),
Michaela Trippl24
Estimated H-index: 24
(University of Vienna)
The special issue zooms in on knowledge dynamics that drive innovation processes and new path development in different regional and sectoral contexts. This investigation rests on the differentiated knowledge base approach, which offers a clear distinction between analytical, synthetic and symbolic types of knowledge and deep insights into their idiosyncrasies. The introduction frames knowledge bases as theoretically discernible and differentiated forms of knowledge creation that are of particula...
Published on Oct 20, 2017in Economic Geography6.86
Markus Grillitsch13
Estimated H-index: 13
(Lund University),
Roman Martin7
Estimated H-index: 7
(Lund University),
Martin Srholec17
Estimated H-index: 17
(Lund University)
The literature on geography of innovation suggests that innovation outcomes depend on a diversity of knowledge inputs, which can be captured with the differentiated knowledge base approach. While knowledge bases are distinct theoretical categories, existing studies stress that innovation often involves combinations of analytical, synthetic, and symbolic knowledge. It remains unclear, though, which combinations are most conducive to innovation at the level of the firm and how this is influenced b...
Published on Aug 1, 2017in Small Business Economics3.56
Alexander McKelvie18
Estimated H-index: 18
(SU: Syracuse University),
Anna Brattström5
Estimated H-index: 5
(Lund University),
Karl Wennberg21
Estimated H-index: 21
(Linköping University)
Growth orientation is important for understanding why some young firms grow but not others, but research remains silent on the intermediary mechanisms mediating the growth orientation–firm growth relationship. We study 282 Swedish firms and show that various innovative activities mediate the growth orientation–firm growth relationship. These mediating innovative activities include informal activities and the launch of new products, but not formal R&D. Our findings offer a more complete explanati...
Published on Aug 1, 2017in Small Business Economics3.56
Caterina Santi1
Estimated H-index: 1
(Sant'Anna School of Advanced Studies),
Pietro Santoleri1
Estimated H-index: 1
(Sant'Anna School of Advanced Studies)
We investigate the relation between the introduction of innovation and subsequent firm growth employing a dataset representative of the Chilean productive structure. By means of quantile treatment effects (QTE), we estimate the effect of the introduction of innovation by comparing firms with a similar propensity to innovate for different quantiles of the firm growth distribution. Our results indicate that process innovation positively affects sales growth for those firms located at the 75th and ...
Published on Aug 1, 2017in Industrial and Corporate Change1.82
Alex Coad30
Estimated H-index: 30
(University of Sussex),
Marc Cowling22
Estimated H-index: 22
(University of Brighton),
Josh Siepel6
Estimated H-index: 6
(University of Sussex)
This article investigates whether high-growth firms grow in different ways from other firms. Specifically, we analyze how firms grow along several dimensions (growth of sales, employment, assets, and operating profits) using Structural Vector Autoregressions. Causal relations are identified by using information contained in the (non-Gaussian) growth rate distributions. For most firms, the growth process starts with employment growth, which is then followed by sales growth, then growth of operati...
Published on Jul 1, 2017in Journal of Product Innovation Management3.78
Ali Mohammadi4
Estimated H-index: 4
(University of Gothenburg),
Anders Broström9
Estimated H-index: 9
(KTH: Royal Institute of Technology),
Chiara Franzoni15
Estimated H-index: 15
(Polytechnic University of Milan)
In this paper, we study how workforce composition is related to a firm’s success in introducing radical innovations. Previous studies have argued that teams composed of individuals with diverse backgrounds are able to perform more information processing and make deeper use of the information, which is important to accomplish complex tasks. We suggest that this argument can be extended to the level of the aggregate workforce of high technology firms. In particular, we argue that ethnic and higher...
Published on Oct 15, 2016in Industrial and Corporate Change1.82
Francesco Bogliacino13
Estimated H-index: 13
(National University of Colombia),
Matteo Lucchesex8
Estimated H-index: 8
(University of Urbino)
+ 1 AuthorsMario Pianta25
Estimated H-index: 25
(University of Urbino)
This article investigates the “virtuous circle” between innovative inputs, outputs, and economic performance with a three-equation model highlighting feedback loops and simultaneous relations. An empirical test is conducted of innovative expenditure, innovative sales, and economic results in a sample of Italian manufacturing firms, comparing occasional and serial innovators. The data, for 1998–2007, are drawn from a rich panel of Italian firms with 20 or more employees compiled by the Italian Na...
Peter Neuhäusler8
Estimated H-index: 8
(Technical University of Berlin),
Torben Schubert14
Estimated H-index: 14
(Fraunhofer Society)
+ 1 AuthorsKnut Blind27
Estimated H-index: 27
(Fraunhofer Institute for Open Communication Systems)
In this article, we analyze the impact of firms’ technology bases on their financial performance. By taking a strategic perspective of technology, we argue that it is not sufficient to analyze only the size or novelty/quality of the technology base as technology bases can best be understood as portfolios of individual technologies. In such a framework, risk consideration should be taken into account. More specifically, we argue that increasing technological breadth can serve as a hedge against t...
Cited By1
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Published on Aug 21, 2019in European Planning Studies2.10
Tatjana Bennat , Rolf Sternberg27
Estimated H-index: 27
ABSTRACTDue to the greater involvement of users and the co-creation of ideas with suppliers or other firms, innovation processes are increasingly based upon combinatorial knowledge. Thus, innovatio...
Published on 2019in Journal of Evolutionary Economics1.44
Sverre J. Herstad14
Estimated H-index: 14
(University of Oslo),
Tore Sandven2
Estimated H-index: 2
This paper considers in detail how different types of innovation (products, processes, patents, combinations) are related to different employment growth characteristics (exit or survival, with employment upscaling or downscaling at moderate or high rates). Using Norwegian Community Innovation Survey (CIS) data collected in 2008 and merged with public employer-employee registers for the years 2004–2010, it finds that growth persists over time, and increases the probability that ‘bundles’ of compl...
Blanca de Miguel-Molina7
Estimated H-index: 7
(Polytechnic University of Valencia),
José Luis Hervás Oliver18
Estimated H-index: 18
(Polytechnic University of Valencia),
Rafael Boix Domenech17
Estimated H-index: 17
(University of Valencia)
ABSTRACTThis paper studies innovation in the creative industry of art restoration, which is characterised by an intensive use of symbolic knowledge. Using the resource-based view of the firm as a theoretical framework, this study adapts Community Innovation Survey (CIS) methodology to this industry, creating and exploiting a unique dataset from the restoration departments of museums in 43 countries on 5 continents. The results suggest that the type and composition of the knowledge bases in play ...
View next paperFirm Growth and Localized Knowledge Externalities