Knowledge complementarities, connectivity, and innovation strategies in Argentinian industrial firms.

FLORENCIA BARLETTA; LUCIANO COHAN; VERÓNICA ROBERT; GABRIEL YOGUEL

Kuala Lumpur

Conferencia; VIII Globelics International Conference; 2010

University of Malasya - Globelics

This paper focuses on the relationship between connectivity and innovation by considering different types of linkages, according to the direction of knowledge flows (one-way or two-way). Specifically, we try to assess the impact of different connectivity strategies on innovation results. To do so, we use an approach that is relatively absent in the literature on cooperation and focus on estimating the impact of various connectivity strategies on innovation efficiency efforts undertaken by firms with different capacity levels. The empirical test shed light on the relationship between connectivity and innovation in firms belonging to different productive sectors in Argentina. We found evidence that corroborates that a firm’s connectivity with external partners has a positive impact on the efficiency of their innovation efforts. This impact was more intense in firms with higher absorptive capacities, which shows the importance of the cumulative learning process in the development of skills and their key role in taking advantage of knowledge flows. Additionally, the paper highlights the underutilization of connectivity to increase the efficiency of product and process innovations. This may reflect the specific characteristics that innovation processes have acquired in developing countries.