Complementarity between internal R+D and buying knowledge: the case of manufacturing and innovative plants in Chile.
Zamorano, Felipe V.
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This study evaluates the hypothesis of complementarity in a case where a firm considers undertaking two types of possible innovation activities: internal R+D and buying external knowledge. The methodology to evaluate the hypothesis is based on Cassiman and Vegeuleres (2006) and Schmiedeberg (2008), which was applied in a transversal selection of manufacturing and innovative plants in Chile. The results do not support the hypothesis of complementarity and suggest a substitution between innovation activities that were taken into consideration. The absence of complementarity in the group of studied plants means that the incentives aimed at buying knowledge do not improve the performance of internal R+D capacities, at least within the 2003-2004 period. Furthermore, such incentives might even reduce the establishments’ innovative performance.