Knowledge Bridging by Biotechnology Start-ups

32 Pages Posted: 15 Jul 2005  

David H. Hsu

University of Pennsylvania - Management Department

Kwanghui Lim

Melbourne Business School

Date Written: June 30, 2005

Abstract

We empirically investigate a type of technological boundary spanning-oriented search in which firms apply knowledge from one technical domain to innovate in another, a phenomenon we term knowledge bridging. In an analysis of a novel dataset of all the biotechnology firms founded to commercialize recombinant DNA technology, we examine the consequences of knowledge bridging at the patent-firm level of analysis, as well as the determinants of this search behavior at the firm-year level of analysis. The empirical setting allows us to establish a common technological starting point and examine knowledge bridging-oriented technological search behavior over time. At the patent-firm level of analysis, we find that knowledge bridging is significantly associated with measures of patent value. In an analysis of antecedents to knowledge bridging search at the firm-year level of analysis, we find that such search behavior is correlated with firms' initial search direction and receipt of venture capital funding.

Keywords: Knowledge exploration, technological boundary spanning, innovation, entrepreneurship, biotechnology, patents

JEL Classification: O3, M13

Suggested Citation

Hsu, David H. and Lim, Kwanghui, Knowledge Bridging by Biotechnology Start-ups (June 30, 2005). Available at SSRN: https://ssrn.com/abstract=755944 or http://dx.doi.org/10.2139/ssrn.755944

David H. Hsu (Contact Author)

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States
215-746-0125 (Phone)
215-898-0401 (Fax)

Kwanghui Lim

Melbourne Business School ( email )

200 Leicester Street
Carlton, Victoria 3053 3186
Australia
+61-3-93498294 (Phone)

HOME PAGE: http://www.mbs.edu

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