Evolution of R&D Capabilities: The Role of Knowledge Networks within a Firm

Management Science, Vol. 51, No. 5, pp. 771-785, 2005

Posted: 2 Dec 2008

See all articles by Atul A. Nerkar

Atul A. Nerkar

University of North Carolina (UNC) at Chapel Hill - Management-Strategy Area

Srikanth Paruchuri

University of Florida

Date Written: November 29, 2008

Abstract

In this paper, we suggest that the characteristics of individual positions in an intraorganizational network of inventors or intrafirm knowledge network predict the likelihood with which knowledge created by an inventor is used in the firm's research and development (R&D) activities. Such choices lead to path dependence and subsequent specialization. We provide empirical evidence that a firm's R&D is concentrated in those areas where it chooses to recombine knowledge, offering support for the path-dependent evolution of capabilities. We test this theory by analyzing the R&D networks in DuPont, a highly regarded Fortune 500 chemical company. Cox Proportional Regression models of intrafirm citations on network characteristics offer strong empirical support for our theory.

Keywords: R&D capabilities; knowledge networks; evolutionary; path dependence

Suggested Citation

Nerkar, Atul A. and Paruchuri, Srikanth, Evolution of R&D Capabilities: The Role of Knowledge Networks within a Firm (November 29, 2008). Management Science, Vol. 51, No. 5, pp. 771-785, 2005, Available at SSRN: https://ssrn.com/abstract=1308847

Atul A. Nerkar

University of North Carolina (UNC) at Chapel Hill - Management-Strategy Area ( email )

Chapel Hill, NC 27599
United States

Srikanth Paruchuri (Contact Author)

University of Florida ( email )

Warrington Collge of Business Administration
STUZIN 211E
Gainesville, FL Florida 32611
United States

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