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Non-R&D SMEs: external knowledge, absorptive capacity and product innovation

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  • Mikko Moilanen
  • Stein Østbye
  • Kristin Woll

Abstract

The relationship between external knowledge, absorptive capacity (AC) and innovative performance for small and medium-sized enterprises (SMEs) is investigated empirically. Using data from a survey on firms located in North Norway, we ask whether AC plays a mediating role between different external knowledge inflows and innovative performance. The results are consistent with AC as an important mediator for transforming external knowledge inflows into higher innovative performance if we include all SMEs in the sample. However, this result is not robust when considering the sub-sample of non-R&D SMEs only. External knowledge inflows have a much stronger direct effect on innovation performance for non-R&D firms and leave a weak mediating effect of AC. Our findings suggest that measures of AC should be developed further in order to make AC a more relevant concept for empirical studies of SMEs without in-house R&D. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Mikko Moilanen & Stein Østbye & Kristin Woll, 2014. "Non-R&D SMEs: external knowledge, absorptive capacity and product innovation," Small Business Economics, Springer, vol. 43(2), pages 447-462, August.
    • Handle: RePEc:kap:sbusec:v:43:y:2014:i:2:p:447-462
    DOI: 10.1007/s11187-014-9545-9
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    More about this item

    Keywords

    Non-R&D innovators; External knowledge; Absorptive capacity; Peripheral regions; L26; O31; O33; R11;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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