Public Support for R&D, Knowledge Sourcing and Firm Innovation: Examining a Mediated Model with Evidence from the Manufacturing Industries

38 Pages Posted: 31 Oct 2013

See all articles by Abel Lucena

Abel Lucena

University of the Balearic Islands, and CREB

Sergio Afcha

Centrum Catolica Graduate Business School

Date Written: October 30, 2013

Abstract

The aim of this study is to examine how firms realize the benefits associated with public support for R&D programs. To do so, this research proposes and tests the hypothesis that the level of knowledge sourcing applied by a firm during the innovation process mediates the relationship between granted R&D subsidies and a firm’s innovative performance. Using a panel of Spanish manufacturing companies, the findings provide evidence to indicate that the degree of firms’ investments in intramural R&D and the levels of openness in their innovation serve as mediating mechanisms between R&D subsidies and firm innovation, as measured by patent application and new product introduction counts. The study advances the literature on innovation management and technology-policy evaluation by showing how firms use their knowledge-sourcing strategies to exploit opportunities provided by public intervention.

Keywords: Intramural R&D, openness in innovation, firm innovative performance, innovation

JEL Classification: D21; L21; O32

Suggested Citation

Lucena, Abel and Afcha, Sergio, Public Support for R&D, Knowledge Sourcing and Firm Innovation: Examining a Mediated Model with Evidence from the Manufacturing Industries (October 30, 2013). Available at SSRN: https://ssrn.com/abstract=2347518 or http://dx.doi.org/10.2139/ssrn.2347518

Abel Lucena (Contact Author)

University of the Balearic Islands, and CREB ( email )

Crtra. Valldemossa, km 7.5
Palma de Mallorca, Illles Balears 07122
Spain
34 971 17 20 03 (Phone)
34 971 17 23 89 (Fax)

Sergio Afcha

Centrum Catolica Graduate Business School ( email )

Jr. Daniel Alomía Robles 125
Urbanización Los Álamos de Monterrico
Lima
Peru

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