Cross-Functional Knowledge Integration, Patenting and Firm's Performance

19 Pages Posted: 30 Jun 2013 Last revised: 29 Oct 2015

See all articles by Marco Ceccagnoli

Marco Ceccagnoli

Scheller College of Business at Georgia Tech

Nicolas van Zeebroeck

Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, iCite

Roberto Venturini

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES); Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management

Date Written: October 22, 2014

Abstract

Knowledge integration, which facilitates interactions between R&D and other functions within a firm value chain, and patenting are both reckoned to increase the returns to R&D and firm performance. However, the combined effect of a joint use is in many ways ambiguous since those strategies pursue different objectives in terms of managing the flow of information within the firm’s boundaries. Although knowledge integration tends to foster within-firm flows of information that may be complementary to patented ideas, some of the internal knowledge leaking to competitors could deteriorate the profitability of appropriability strategies. Using survey-based data on the organization and appropriability of R&D in the US manufacturing sector, we present evidence suggesting that contextual variables favoring R&D spillovers across rivals tend to increase the substitutability between patenting and cross-functional knowledge integration.

Keywords: R&D, Performance, Knowledge Integration, Patents, Spillovers

JEL Classification: O31, O32, L15

Suggested Citation

Ceccagnoli, Marco and van Zeebroeck, Nicolas and Venturini, Roberto, Cross-Functional Knowledge Integration, Patenting and Firm's Performance (October 22, 2014). Available at SSRN: https://ssrn.com/abstract=2286693 or http://dx.doi.org/10.2139/ssrn.2286693

Marco Ceccagnoli

Scheller College of Business at Georgia Tech ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

Nicolas Van Zeebroeck

Université Libre de Bruxelles, Solvay Brussels School of Economics and Management, iCite ( email )

Ave. Franklin D Roosevelt, 50 - C.P. 114/4
Brussels, B-1050
Belgium
+3226503375 (Phone)

HOME PAGE: http://www.vanzeebroeck.net

Roberto Venturini (Contact Author)

Université Libre de Bruxelles (ULB) - European Center for Advanced Research in Economics and Statistics (ECARES) ( email )

Ave. Franklin D Roosevelt, 50 - C.P. 114
Brussels, B-1050
Belgium

Université Libre de Bruxelles (ULB) - Solvay Brussels School of Economics and Management ( email )

19 Av Franklin Roosevelt
1050
Brussels
Belgium

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