Frontiers of Entrepreneurship Research
1996 Edition


PARASITIC PRODUCT DEVELOPMENT:
DO SMALL FIRMS EXPLOIT KNOWLEDGE SPILLOVERS?

Michael B. Heeley, University of Washington

Charles W. L. Hill, University of Washington


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Introduction
Data and Methods
Results and Discussion
Conclusions and Implications
References


ABSTRACT

In this paper we argue that firms located in regions with similar enterprises can tap the R&D knowledge of those enterprises and use that knowledge to improve the effectiveness of their own product development efforts. The effect of knowledge spillovers will be moderated by the ability of a firm to understand and evaluate external knowledge. This ability, or absorptive capacity, will vary depending on the size of the firm. Our results suggest that differences in firm absorptive capacity affect the relationship between industry concentration and success of product development, and these relationships vary with firm size.

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1997 Babson College All Rights Reserved
Last Updated 1/15/97 by Geoff Goldman & Dennis Valencia

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