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CONCLUSIONS AND IMPLICATIONS

Using new measures of absorptive capacity the effect of external knowledge acquisition and intra–firm knowledge dissemination on research productivity was investigated. Results show that judicious use of knowledge from external sources can increase the productivity of research expenditures.

In addition we find that the results differ for our size classes, suggesting that firm size affects the abilities of a firm to benefit from external knowledge.. Smaller firms benefit from knowledge about customers, while large firms with increased knowledge about competitors and new developments experience greater research productivity.

TABLE 3

Analysis of Model II for the Different Size Classes Dependent Variable: Percent Sales Growth (1993–1995)

 

Size Class I

Size Class II

Size Class III

Intercept

0.2381

(0.1038)

0.3604

(0.0796)

0.1318

(0.02559)

Percent research expenditure growth (1993–1995) (1)

0.6516***

(0.2348)

0.0097

(0.2300)

0.0829*

(0.0519)

Knowledge acquisition about competitors (2)

0.0240

(0.0882)

0.0655

(0.0849)

0.0016

(0.0284)

Knowledge acquisition about customers (3)

0.0929

(0.0838)

-0.0861

(0.0816)

0.0360

(0.0280)

Knowledge acquisition about new developments (4)

-0.03091

(0.0784)

0.0688

(0.0841)

0.0348

(0.0275)

Intra–firm knowledge dissemination (5)

-0.0759

(0.0671)

-0.0349

(0.0783)

-0.0655**

(0.0297)

(1*2)

0.0164

(0.3776)

0.0660

(0.1760)

0.0904*

(0.0495)

(1*3)

0.6623**

(0.3121)

0.0737

(0.1452)

-0.1605*

(0.0496)

(1*4)

-0.3391

(0.2078)

0.1416

(0.2468)

0.1405***

(0.0522)

(1*5)

-0.0970

(0.2174)

0.0157

(0.2429)

0.3855***

(0.0968)

Multiple R–Squared

0.4477

0.0763

0.5321

F statistics

3.062

0.0763

12.63

p value

< 0.01

< 0.8

< 0.0001

N

231

231

231

*Significant at the 0.1 level, **Significant at the 0.05 level, ***Significant at the 0.01 level

 

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