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What drives the delegation of innovation decisions? The roles of firm innovation strategy and the nature of external knowledge

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  • Colombo, Massimo G.
  • Foss, Nicolai J.
  • Lyngsie, Jacob
  • Rossi Lamastra, Cristina

Abstract

We study what determines delegation of authority over innovation decisions in firms. Extant research that addresses this topic in an open innovation context, suggests that firms that engage in open innovation tend to delegate authority over innovation decisions. We provide a more nuanced argument that considers important contingencies. Thus, we argue that the extent of delegation depends upon the combined effect of the relative importance of innovation decisions to the firm's strategy and, when a firm engages in open innovation, on the nature of the external knowledge (scientific vs. practical) that it seeks to absorb from the external environment. We test our hypotheses on data from a double-respondent survey of Danish firms that we link to Community Innovation Survey data and to the Danish Integrated Database for Labor Market Research. We provide econometric results that support our hypotheses.

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  • Colombo, Massimo G. & Foss, Nicolai J. & Lyngsie, Jacob & Rossi Lamastra, Cristina, 2021. "What drives the delegation of innovation decisions? The roles of firm innovation strategy and the nature of external knowledge," Research Policy, Elsevier, vol. 50(1).
    • Handle: RePEc:eee:respol:v:50:y:2021:i:1:s0048733320302092
    DOI: 10.1016/j.respol.2020.104134
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    Keywords

    Delegation of innovation decisions; R&D intensity; open vs. closed innovation; scientific knowledge; practical knowledge;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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