Causal Relationships among Technology Acquisition, Absorptive Capacity, and Innovation Performance: Evidence from the Pharmaceutical Industry

Jieun Jeon, Suckchul Hong, Jay Ohm and Taeyong Yang

PLOS ONE, 2015, vol. 10, issue 7, 1-14

Abstract: This paper discusses the importance of absorptive capacity in improving a firm’s innovation performance. Specifically, we examine firm interaction with the knowledge and capabilities of outside organizations and the effect on the firm’s bottom line. We use the impulse-response function of the vector auto-regressive model to gain insight into this relationship by estimating the time required for the effect of each activity level to reach outputs, the spillover effects. We apply this methodology to pharmaceutical firms, which we classify into two sub-groups – large firms and medium and small firms – based on sales. Our results show that the impact of an activity on any other activity is delayed by three years for large firms and by one to two years for small and medium firms.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0131642 (text/html)
https://journals.plos.org/plosone/article/file?id= ... 31642&type=printable (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0131642

DOI: 10.1371/journal.pone.0131642

Access Statistics for this article

More articles in PLOS ONE from Public Library of Science
Bibliographic data for series maintained by plosone ().