Pedro de Faria

International cooperation on innovation: Firm-level evidence from two European countries

Abstract In this paper we investigate the factors that lead firms to cooperate with partners from foreign countries on innovation activities. Portuguese and German data from the harmonised Community Innovation Survey III (CIS) allow us to compare innovation cooperation behaviour of private firms in the two countries. We first look at diffirences between the drivers of fireign and domestic cooperation and find, that absorptive capacities influence both types of cooperation. Supporting absorptive capacity building can therefore be a policy tool to foster international and domestic R&D cooperation at the same time. We also show that the characteristics of firms cooperating with fireigners in both countries are quite similar. International activities other than cooperation, firm size and the importance of protection methods for knowledge have a positive influence on the decision to cooperate with foreign partners in both countries. Some differences remain, however In Germany, exporters are more likely to cooperate with foreign partners than non-exporters, whereas in Portugal this is not the case.

Dusting Off the Knowledge Shelves: Recombinant Lag and the Technological Value of Inventions

Whereas knowledge recombination research tends to focus on original knowledge component attributes and their recombinant value implications, we contribute to an emerging literature stream on knowledge reuse trajectories, investigating the temporal dimension of reuse by introducing the concept of recombinant lag, that is, the time that components have remained unused. Relying on organizational learning theory, we emphasize that it is important to consider not only the frequency of reuse but also the recency of reuse. Our core argument is that recent reuse of knowledge components can trigger a rejuvenation effect that influences the value of resulting inventions. Analyzing 21,117 fuel cell patent families, we find an unexpected U-shaped relationship between recombinant lag and the value of inventions, which is moderated by frequency of reuse. Conducting post hoc exploratory data analyses, we advance the concept of dormant components (i.e., valuable components that have remained unused prolongedly) as a potential explanation for this unexpected U-shaped pattern. Moreover, collecting and analyzing data on a second sample in the wind energy industry, we provide first indications for the generalizability of these unexpected findings. We contribute to a richer understanding of reuse trajectories, highlighting that next to the magnitude of reuse information flows, that is, information flows that are generated when components are reused, the timing of creation of these information flows shapes the value of subsequent recombination activities. We also contribute to extant research on the temporal dimension of knowledge recombination, pointing to recombinant lag as an important aspect next to component age.

Only Time Will Tell? Recombinant Lag and the Technological Value of Inventions

Focusing on the temporal dimension of knowledge recombination, studies examine the extent to which the age of components influences the value of inventions. However, this research neglects that components vary substantially in terms of when they were last used. To address this gap, we introduce the concept of recombinant lag, i.e. the time that components in knowledge recombination have remained unused, and test its impact on the technological value of inventions. We predict that components that remain unused for longer periods become less technologically relevant and more difficult to retrieve. However, we also expect that, beyond a certain point, the uniqueness and untapped recombinant potential of components that remain unused for longer periods to outweigh these two disadvantages. Analyzing 20,906 fuel cell patent families, we find that the recombinant lag of components used in knowledge recombination has a U-shaped relationship with the technological value of resulting inventions. Our findings contri...

Foreign divestment: What stays when multinationals leave?

When an MNE closes its doors, workers may find themselves in demand or struggling, depending on the nature of their employment and the characteristics of the foreign affiliate itself. The authors recommend a targeted policy approach that focuses on transition assistance for the most vulnerable employees.