Resource title

Distributed RandD, cross-regional ties and quality of innovative output

Resource image

image for OpenScout resource :: Distributed RandD, cross-regional ties and quality of innovative output

Resource description

This paper studies the impact of geographic dispersion of a firm's RandD activities on the quality of its innovative output. Theoretically, the sign of this relationship is ambiguous since gains from access to expertise and resources from different regions could be offset by costs of coordination and difficulty of knowledge integration across distant units. Empirically, we find no evidence that distributed RandD in itself improves the value of a firm's innovations. In fact, if anything, innovations from firms with distributed RandD have a slightly lower average value than those from firms with more centralized RandD. However, when geographic dispersion of RandD is also accompanied by a sufficient extent of cross-regional ties across researchers from different RandD units, we find that the above effect gets reversed and an improvement in innovation does occur. More generally, our findings provide new evidence regarding the importance of intra-firm networks for the performance of multi-unit firms.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2006/2006-10.pdf

Resource license

Copyright INSEAD. All rights reserved