Absorptive Capacity: A new Perspective on Learning and Innovation

1. 2011 Fall Seminar on Technological Innovation Absorptive Capacity: A new Perspective on Learning and Innovation Wesley M. Cohen & Daniel A. Levinthal Administrative Science Quarterly, 35 (1990): 128-152 2011.11.09 고윤미, 한상연

2. Summary #1 • □ Absorptive capacity and R&D incentives • Definition • Absorptive capacity is the ability to recognize the value of new information, • assimilate it, and apply it to commercial ends. • industry’s four-firm concentration ratio • price elasticity of demand • relevance of basic & applied science • importance of external sources • intraindustry spillovers of R&D • R&D intensity

3. Summary #2 • □ Components of Absorptive capacity and R&D Investment Individual-Organizational-Firm Prior Knowledge Gate keeper Communication System Learning difficulty level AccumulatedKnowledge Internal Path Dependence Organization Structure Knowledge diversity Knowledge Overlap Appropriability Degree of Competition Demand Features of user Various sources of knowledge External Uncertainty Competitor Interdependence Features of user Maturity of market Market

4. Summary #3 • □ selection of variables for studying absorptive capability additional ?

5. Summary #4 • □ Analysis of R&D intensity inter dependence spillover external sources basic science applied science control

6. Discussion #1 □ Knowledge Diversity Vs. Knowledge Overlap • Is the diversity always to stimulate the generation of new ideas? * Simon(1985), Utterback(1971) • With respect to Industrial view, • Is there any differences? Background Knowledge(High) ? Knowledge Diversity Knowledge Overlap • Howcan we make structure of organization for innovation effectiveness? Background Knowledge(Low)