The role of institucions in explaining firm innovation strategies

  1. Jaime Gómez 1
  2. Andy Lockett 2
  3. Beatriz Pérez-Aradros 1
  4. Leroy White 2
  1. 1 Universidad de La Rioja
    info

    Universidad de La Rioja

    Logroño, España

    ROR https://ror.org/0553yr311

  2. 2 Warwick Business School, Reino Unido
Proceedings:
XXVIII Congreso de ACEDE. Generar y transferir conocimiento en una sociedad cambiante e interconectada. Valladolid, 24-26 de junio de 2018. Libro de resúmenes

Publisher: Asociación de Economía y Dirección de Empresas

ISBN: 978-84-09-03882-4

Year of publication: 2018

Pages: 26

Congress: XXVIII Congreso ACEDE. Generar y transferir conocimiento en una sociedad cambiante e interconectada. Valladolid, 24-26 de junio de 2018

Type: Conference paper

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Abstract

This paper studies the role of institutions in explaining the innovation strategies offirms. In particular, we focus on how firms organize their innovation strategies by deciding betweeninternal R&D investments and external R&D acquisition. Although the literature on innovation has tackledthis issue, the traditional explanation relies on firm and industry specific factors. However, this is notenough to explain the evidence that shows high variability in knowledge acquisition strategies betweenfirms that belong to different countries. In this context, we argue that the institutional environment maycontribute to the explanation by affecting the costs and the risk of the different strategies available. Inparticular, we focus on the strength of property rights enforcement and on the two informal institutions thathave been shown to have a stronger influence on firm choices, namely, uncertainty avoidance andindividualism. We test our hypotheses on data from firms belonging to 10 African and Asian countries