Firm Capabilities, Technological Dynamism and Innovation Internationalisation – a Behavioural Approach
Torben Schubert (),
Elisabeth Baier () and
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Torben Schubert: CIRCLE, Lund University, Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden
Elisabeth Baier: HWTK, Baden-Baden, Postal: Germany
No 2017/13, Papers in Innovation Studies from Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy
We develop a behavioural framework of bounded rational decision-making under uncertainty by which we analyse the effect of technological dynamism in the firm’s environment on its decisions to internationalise innovation. Arguing that the firm’s technological performance lev-el affects its risk-preferences, a key-prediction is that firms with low technological compe-tences will internationalise innovation when faced by technological uncertainty while firms with high competences will withdraw from international innovation. A fully rational absorptive-capacity framework would predict the opposite relationship because it ignores the role of dif-ferential risk-preferences. We test our framework using data from the German Community Innovation Survey (CIS).
Keywords: innovation internationalisation; speed of technological change; bounded rationality; prospect theory; uncertainty; technological capabilities (search for similar items in EconPapers)
JEL-codes: F21 F23 L22 O32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ino, nep-sbm, nep-tid and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lucirc:2017_013
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