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How Important Are Internal Knowledge Flows for Firms' Innovative Performance in Spain?

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  • Esther Goya

    (AQR-IREA Research Group, University of Barcelona)

Abstract

The aim of this paper is to analyse the extent to which internal knowledge flows may have an impact on firms' innovative performance. As most of innovation literature has focused its attention on external knowledge transfers, internal knowledge flows have faded into the background. However, transference of information and experience within firms can improve their technological performance impacting positively on their innovativeness leading to higher innovative sales. Voluntary and involuntary knowledge flows are taken under consideration as well as firm's absorptive capacity. The dataset used is Technological Innovation Panel (PITEC) for Spain over the period 2004-2011. The results indicate that internal knowledge flows have a positive and significant influence on innovative sales. In particular, voluntary knowledge flows have a greater impact than involuntary knowledge transfers. Interestingly, internal knowledge flows increase innovative sales to a greater extent than their external counterparts. This finding highlights the importance of internal information which, as it was mentioned previously, usually remains in the shadows. Finally, absorptive capacity only seems to enhance efficiency in exploiting involuntary knowledge flows.

Suggested Citation

  • Esther Goya, 2014. "How Important Are Internal Knowledge Flows for Firms' Innovative Performance in Spain?," Economics Discussion Papers em-dp2014-07, Department of Economics, University of Reading.
    • Handle: RePEc:rdg:emxxdp:em-dp2014-07
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    File URL: http://www.reading.ac.uk/web/FILES/economics/emdp2014112.pdf
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    More about this item

    Keywords

    innovation performance; internal knowledge flows; absorptive capacity; Spain;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - 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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