HOST LOCATION KNOWLEDGE SOURCING AND SUBSIDIARY INNOVATIVE PERFORMANCE: EXAMINING THE MODERATING ROLE OF ALTERNATIVE SOURCES OF KNOWLEDGE AND IPR DISTANCE

Georgios Batsakis

Chapter 15 in Exploiting Intellectual Property to Promote Innovation and Create Value, 2017, pp 331-359 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This study investigates the relationship between the subsidiary’s external knowledge sourcing in the host network of operation and innovative performance, and the moderating role of (i) alternative sources of knowledge (those related to the internal and external home knowledge network) and (ii) Intellectual Property Rights (IPRs) distance between the host and the home location of the Multinational Enterprise (MNE). Based on a dataset comprising 170 R&D subsidiaries (classified by 57 parent companies and 23 host countries) it is shown that a curvilinear (inverted U-shaped) relationship exists between external host knowledge sourcing and innovative performance. In terms of the moderating effects, the findings reveal that the influence of alternative sources of knowledge affects the aforementioned relationship in a negative way. Finally, a stronger IPR protection regime in the host location weakens, rather than strengthens the relationship between the external host knowledge sourcing and innovative performance.

Keywords: Intellectual Property; IP Rights; Innovation; Industrial Property; Copyright (search for similar items in EconPapers)
JEL-codes: O34 (search for similar items in EconPapers)
Date: 2017
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