"Open" Product and Process Innovation: The Complementary Roles of R&D, Manufacturing and Marketing in External Knowledge Sourcing

TY - CHAP

T1 - "Open" Product and Process Innovation

T2 - The Complementary Roles of R&D, Manufacturing and Marketing in External Knowledge Sourcing

AU - Bogers, Marcel

AU - Lhuillery, Stéphane

PY - 2018/3/20

Y1 - 2018/3/20

N2 - We unpack the black box of open innovation, external knowledge search in particular, by showing how firms use not only R&D but also manufacturing and marketing for external knowledge sourcing for product and process innovation. Our econometric model reveals that the inverted U-shaped relationships found by Laursen and Salter (2006) for external search breadth hold for all functional areas but those for external search depth hold only for R&D-based search aiming at product innovation. In every case, we find that observed firms’ breadth suboptimal. We also find suboptimality for search depth: the optimal depth level is the maximum for marketing-based and manufacturing-based searches. We also specifically show that marketing is the dominant base for external sourcing for product innovation, and manufacturing is the dominant base for external sourcing for process innovation. Finally, we find strong complementarities among the roles of the three functional areas, which suggests that firms develop different absorptive capacities at the same time and do not substitute one for another.

AB - We unpack the black box of open innovation, external knowledge search in particular, by showing how firms use not only R&D but also manufacturing and marketing for external knowledge sourcing for product and process innovation. Our econometric model reveals that the inverted U-shaped relationships found by Laursen and Salter (2006) for external search breadth hold for all functional areas but those for external search depth hold only for R&D-based search aiming at product innovation. In every case, we find that observed firms’ breadth suboptimal. We also find suboptimality for search depth: the optimal depth level is the maximum for marketing-based and manufacturing-based searches. We also specifically show that marketing is the dominant base for external sourcing for product innovation, and manufacturing is the dominant base for external sourcing for process innovation. Finally, we find strong complementarities among the roles of the three functional areas, which suggests that firms develop different absorptive capacities at the same time and do not substitute one for another.

U2 - 10.1142/9789813149083_0004

DO - 10.1142/9789813149083_0004

M3 - Book chapter

SN - 9789813147072

VL - 3

SP - 77

EP - 110

BT - World Scientific Reference on Innovation

A2 - Nambisan, Satish

PB - World Scientific

CY - Singapore; Hackensack, NJ & London

ER -