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When do firms focus on public research? : evidence from U.S. medical device industry

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  • Jeong-Duk Choi
  • Jong-Seon Lee
  • Zong-Tae Bae

Abstract

Public research including universities and research institutes is an important source of innovation. This paper describes how a performance feedback model explains the conditions under which firms source external knowledge through universities and research institutes. In the U.S. medical device industry, we show that there is an inverted U-shaped relationship between performance below aspirations and knowledge sourcing from public research. Furthermore, we find that firms respond to historical aspirations more sensitively than social aspirations, and slack resources tend to attenuate the relationship between performance below historical aspirations and knowledge sourcing from public research.

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  • Jeong-Duk Choi & Jong-Seon Lee & Zong-Tae Bae, 2019. "When do firms focus on public research? : evidence from U.S. medical device industry," Industry and Innovation, Taylor & Francis Journals, vol. 26(6), pages 667-689, July.
    • Handle: RePEc:taf:indinn:v:26:y:2019:i:6:p:667-689
    DOI: 10.1080/13662716.2019.1574220
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    Cited by:

    1. Diwei Lv, David & Zhu, Hang & Chen, Weihong & Lan, Hailin, 2021. "Negative performance feedback and firm cooperation: How multiple upward social comparisons affect firm cooperative R&D," Journal of Business Research, Elsevier, vol. 132(C), pages 872-883.

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