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R&D/Returns Causality: Absorptive Capacity or Organizational IQ

Anne Marie Knott · 2008 · Management Science

Summary. This paper challenges the absorptive capacity theory by arguing that firms' ability to benefit from R&D spending reflects innate organizational capability rather than investment behavior. The author finds that when accounting for differences in firm quality, the interaction between a firm's own R&D and rivals' R&D becomes insignificant. Higher-performing firms invest more in R&D, but R&D spending itself does not improve a firm's capacity to learn from competitors' innovations.

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Knott, A. M.. (2008). R&D/Returns Causality: Absorptive Capacity or Organizational IQ. Management Science. https://doi.org/10.1287/mnsc.1080.0933

Details

DOI
10.1287/mnsc.1080.0933
Countries
United States
Regions
North America
Categories
innovation-theory, general-innovation
Added
2026-04-28