Firm heterogeneity and learning by technology in-licensing: Empirical evidence from China

Abstract

In explaining variation in innovative performance of firms the resourcebased view of the firm draws on the concept of firm heterogeneity. We contribute to this stream of research by introducing technology in-licensing as a learning mechanism and by highlighting the joint effect of five aspects of firm heterogeneity. Moreover, we provide empirical evidence that licensing experience together with other sources of firm heterogeneity lead to substantial differences in innovative performance of firms. We argue that the age and size, technological strength, experience of licensing agreements (integrative capability), and orientation towards foreign knowledge sourcing are factors that determine which firms are better positioned for learning through technology in-licensing - And so achieve superior innovative performances. This is illustrated by an empirical study based on a unique dataset that is owned by the Chinese government. © Springer-Verlag Berlin Heidelberg 2014.