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The influence of scope, depth, and orientation of external technology sources on the innovative performance of Chinese firms

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  • Chen, Jin
  • Chen, Yufen
  • Vanhaverbeke, Wim

Abstract

It is commonly accepted nowadays that external knowledge sources are important for firms’ innovative performance. However, it is still not clear, what dimensions of firms’ external knowledge search strategy are crucial in determining their innovation success and whether these search strategies are contingent on different innovation modes. In this study, we analyze how the innovative performance is affected by the scope, depth, and orientation of firms’ external search strategies. We apply this analysis to firms using STI (science, technology and innovation) and DUI (doing, using and interacting) innovation modes. Based on a survey among firms in China, we find that greater scope and depth of openness for both innovation modes improves innovative performance indicating that open innovation is also relevant beyond science and technology based innovation. Furthermore, we find that decreasing returns in external search strategies, suggested by Laursen and Salter (2006), are not always present and are contingent on the innovation modes. Next, we find that the type of external partners (we label it “orientation of openness”) is crucial in explaining innovative performance and that firms using DUI or STI innovation modes have different sets of relevant innovation partners. This shows that the orientation of openness is an important dimension – in addition to the scope and depth of openness. As respondents are located in China, this study provides evidence that open innovation is also relevant in developing countries.

Suggested Citation

  • Chen, Jin & Chen, Yufen & Vanhaverbeke, Wim, 2008. "The influence of scope, depth, and orientation of external technology sources on the innovative performance of Chinese firms," MPRA Paper 22589, University Library of Munich, Germany, revised 2010.
    • Handle: RePEc:pra:mprapa:22589
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    References listed on IDEAS

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    Cited by:

    1. Roper, Stephen & Arvanitis, Spyros, 2012. "From knowledge to added value: A comparative, panel-data analysis of the innovation value chain in Irish and Swiss manufacturing firms," Research Policy, Elsevier, vol. 41(6), pages 1093-1106.
    2. A. Lasagni, 2011. "European SMEs, external relationships and innovation: some empirical evidence," Economics Department Working Papers 2011-EP04, Department of Economics, Parma University (Italy).

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    More about this item

    Keywords

    open innovation; DUI and STI innovation modes; scope; depth and orientation of openness; innovative performance;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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