Innovation performance and licensing: The effect of the compositional quality of direct and indirect network ties

Serge Sime, John Hagedoorn and Hui Tan

Technovation, 2023, vol. 127, issue C

Abstract: Our research examines the effect of the compositional quality of firms’ direct and indirect network ties on their innovation performance in a licensing context. It addresses the theoretical and empirical puzzle of why firms that exhibit quite similar patterns in their direct and indirect ties with other firms may nonetheless exhibit heterogeneous innovation performance outcomes. Using licensing and patenting data of firms operating in the semiconductor industry, we find that the compositional quality of both direct and indirect ties, based on their relevant technological characteristics positively affect the innovation performance of firms (licensees). Moreover, combining the compositional quality of direct and indirect ties has a complementary, rather than a substitution effect on firms’ innovation performance.

Keywords: Networks; Direct and indirect ties; Quality of ties; Licensing; Innovation performance (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:techno:v:127:y:2023:i:c:s0166497223001372

DOI: 10.1016/j.technovation.2023.102826

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