A Matter of Location: The Role of Regional Social Capital in Overcoming the Liability of Newness in R&D Acquisition Activities

Keld Laursen, Francesca Masciarelli, Toke Reichstein

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    Abstract

    External knowledge acquisition is a precondition for firms’ competitive advantage. However, young firms exhibit a lower propensity to acquire external research and development (R&D) than their older counterparts. The paper explores the role of regional social capital in moderating this aspect of the liability of newness. The results show that young firms operating in regions with low levels of social capital are less likely to acquire R&D externally. However, this is not the case in regions with high levels of social capital, suggesting that the liability of newness in terms of acquisition of external R&D does not play a role in these regions.
    Original languageEnglish
    JournalRegional Studies
    Volume50
    Issue number9
    Pages (from-to)1537-1550
    Number of pages14
    ISSN0034-3404
    DOIs
    Publication statusPublished - 2016

    Keywords

    • Research and development
    • Social capital
    • Liability of newness
    • Geography

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