Dear Colleagues,
The next Entrepreneurship and Innovation Policy Research virtual seminar is Thursday, February 1, from 11:00-12:00 ET. Min Jung Kim (University of Illinois) - will present "Knowledge Interdependence as a Double-edged Sword for Firm Innovation: The Role of Adverse Regulatory Events" (with Jingya You). Keyvan Vakili (London Business School) will discuss. Click HERE to register for the 2/1 seminar (abstract is below). We hope you join us.
Please visit this LINK to view and register for other Spring 2024 seminars.
- Tim Folta (UCONN), Maryann Feldman (ASU), and Supradeep Dutta (Rutgers U)
Abstract: This study examines how knowledge interdependence, in combination with environmental contingencies, influences firm innovation. Using the U.S. pharmaceutical industry as an empirical setting, we find that firms' knowledge interdependence is positively associated with innovation, as it can generate synergistic effects and facilitate the reuse of their existing knowledge. However, the positive relationship between knowledge interdependence and innovation becomes negative when the firm experiences regulation-induced product shocks (e.g., drug withdrawals and black box warnings), owing to substantial adjustment costs and high technological uncertainty associated with those shocks. These empirical findings highlight that knowledge interdependence is a double-edged sword for firm innovation, and its implications for innovation depend on environmental contingencies requiring adjustments to their knowledge bases.