Template-type: ReDIF-Paper 1.0
Author-Name: Belderbos, Rene
Author-Email: Rene.Belderbos@econ.kuleuven.be
Author-Workplace-Name: UNU-MERIT, Maastricht University and KU Leuven 
Author-Name: Faems, Dries
Author-Email: d.l.m.faems@utwente.nl 
Author-Workplace-Name: KU Leuven
Author-Name: Leten, Bart
Author-Email: Bart.leten@econ.kuleuven.be
Author-Workplace-Name: KU Leuven
Author-Name: Van Looy, Bart
Author-Email: Bart.vanlooy@econ.kuleuven.be
Author-Workplace-Name: KU Leuven
Title: Technological activities and their impact on the financial performance of the 
	 firm: Exploitation and exploration within and between firms
Abstract: This paper analyzes the consequences for financial performance of 
	 technology strategies categorized along two dimensions: (1) explorative 
	 versus exploitative and (2) solitary versus collaborative. The financial 
	 performance implications of firms’ positioning along these two 
	 dimensions has important managerial implications, but has received only 
	 limited attention in prior studies. Drawing on organizational learning 
	 theory and technology alliances literature, a set of hypotheses on the 
	 performance implications of firms’ technology strategies are derived. 
	 These hypotheses are tested empirically on a panel dataset (1996-2003) 
	 of 168 R&D-intensive firms based in Japan, the US and Europe and 
	 situated in five different industries (chemicals, pharmaceuticals, ICT, 
	 electronics, non-electrical machinery). Patent data are used to 
	 construct indicators of explorative versus exploitative technological 
	 activities (activities in new or existing technology domains) and 
	 collaborative versus solitary technological activities (joint versus 
	 single patent ownership). The financial performance of firms is measured 
	 via a market value indicator: Tobin’s Q index. 
Classification-JEL: O31, O32 
Keywords: Innovation, Tobin’s q, R&D collaboration, exploration & exploitation
Series: UNU-MERIT Working Papers
Creation-Date: 2009
Number: 067
File-URL: http://www.merit.unu.edu/publications/wppdf/2009/wp2009-067.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2009067