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When and How Outside-In Innovation Works : The Role of In-House R&D Units in Manufacturing Firms

초록/요약

Focusing on open innovation, which has emerged as a core survival strategy for manufacturing firms amidst a rapidly changing industrial environment, this study analyzed the association of external R&D collaboration with a firm's innovation performance and identified the moderating effect of the presence of an in-house R&D unit. To this end, a hierarchical logistic regression analysis was conducted on 2,470 Korean manufacturing firms that engaged in innovation activities, utilizing data from the 2024 Korean Innovation Survey (KIS) administered by the Science and Technology Policy Institute (STEPI). Results indicated that external R&D collaboration is significantly associated with a higher likelihood of innovation success exclusively for firms possessing an in-house R&D unit, demonstrating that this relationship exhibits a conditional association. Specifically, while the positive association of external collaboration was not significant in the group of firms without a dedicated unit, the positive association between external R&D collaboration and innovation performance was distinctly manifested in the group of firms equipped with such a unit. Meanwhile, in a closed innovation environment characterized by the absence of external collaboration, the likelihood of innovation success for firms with an in-house R&D unit was found to be lower than that of firms without such a unit. By illuminating open innovation and absorptive capacity theories from an integrated perspective to analyze the mechanisms through which external R&D collaboration is associated with innovation performance, this study suggests to corporate managers the necessity of adopting innovation strategies based on the organic combination of external knowledge and internal capabilities. Furthermore, it emphasizes to policymakers the importance of implementing policies that strengthen the organizational foundation of a firm's absorptive capacity in tandem with policies promoting open innovation.

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목차

I. Introduction 1
1.1 Innovation 2
1.2 Open Innovation 3
1.3 External R&D Collaboration 4
1.4 Absorptive Capacity and In-House R&D Unit 4
1.5 Current Study 5
II. Methods 5
2.1 Study Population 5
2.2 Primary Measures 6
2.2.1 Innovation Performance 6
2.2.2 External R&D Collaboration 6
2.2.3 In-House R&D Unit 7
2.3 Control Variables 7
III. Results 8
3.1 Preliminary Results 8
3.2 Main Results 11
3.2.1 Main Effects 11
3.2.2 Moderating Effect 12
3.2.3 Simple Slope Analyses 12
3.3 Robustness Test 12
3.3.1. Robustness of Logistic Regression Results 13
IV. Discussion 17
4.1 Theoretical Implications 17
4.2 Practical Implications 18
V. Conclusion 19
References 21

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