Template-type: ReDIF-Paper 1.0
Author-Name: Duysters, Geert
Author-Email: duysters@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Vanhaverbeke, Wim
Author-Email: w.p.m.vanhaverbeke@tm.tue.nl
Author-Workplace-Name: Technical University Eindhoven
Author-Name: Beerkens, Bonnie
Author-Email: b.e.beerkens@tm.tue.nl
Author-Workplace-Name: Technical University Eindhoven
Title: Technological capability building through networking strategies within high-tech 
	 industries 
Abstract: Learning through networks has been considered as an important research 
	 topic for several years now. Technological learning is more and more 
	 based on a combination of internal and external learning and firms need 
	 to develop both technological and social capital for that purpose. This 
	 paper analyses the relationship between both types of capital and their 
	 impact on the technological performance of companies in high-tech 
	 industries. We claim and find empirical evidence for decreasing marginal 
	 returns on social capital. Technological capital and social capital 
	 mutually reinforce each other's effect on the rate of innovation for 
	 companies with small patent and alliance portfolios. However, when the 
	 patent portfolio and network of alliances are extensive, companies risk 
	 to over-invest since optimal levels of social capital become smaller at 
	 higher levels of technological capital and the marginal benefits of 
	 investing in technological capital decreases the higher the levels of 
	 social capital. Finally, we find empirical evidence that companies that 
	 explore novel and pioneering technologies have higher levels of 
	 innovation performance in subsequent years than companies that solely 
	 invest in incremental innovations.
Classification-JEL: O32, O31
Keywords: Strategic Alliances, Networks, Innovation
Series: UNU-MERIT Working Papers
Creation-Date: 2007
Number: 018
File-URL: http://www.merit.unu.edu/publications/wppdf/2007/wp2007-018.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2007018