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

    Research output: Working paperResearch

    Abstract

    External knowledge acquisition represents a precondition for firms’ competitive advantage. However, young firms find it particularly difficult to gain access to external sources of knowledge: young firms suffer from a liability of newness by exhibiting significantly lower propensities to invest in external R&D than their older counterparts. We explore the role of geographically bound social capital in moderating this liability. By employing a Nested Logit approach, our findings show that geographically bound social capital moderates the liability of newness related to R&D acquisition, suggesting that the liability exists only in regions associated with low levels of social capital.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherDRUID - Danish Research Unit for Industrial Dynamics
    Number of pages35
    ISBN (Print)9788778733078
    Publication statusPublished - 2010

    Keywords

    • Research and Development
    • Social Capital
    • Lianility of Newness
    • Geography

    Cite this

    Laursen, Keld ; Masciarelli, Francesca ; Reichstein, Toke. / A Matter of Location : The Role of Regional Social Capital in Overcoming the Liability of Newness in R&D Acquisition Activities. Frederiksberg : DRUID - Danish Research Unit for Industrial Dynamics, 2010.
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    A Matter of Location : The Role of Regional Social Capital in Overcoming the Liability of Newness in R&D Acquisition Activities. / Laursen, Keld; Masciarelli, Francesca; Reichstein, Toke.

    Frederiksberg : DRUID - Danish Research Unit for Industrial Dynamics, 2010.

    Research output: Working paperResearch

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    T2 - The Role of Regional Social Capital in Overcoming the Liability of Newness in R&D Acquisition Activities

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    AU - Masciarelli, Francesca

    AU - Reichstein, Toke

    PY - 2010

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    N2 - External knowledge acquisition represents a precondition for firms’ competitive advantage. However, young firms find it particularly difficult to gain access to external sources of knowledge: young firms suffer from a liability of newness by exhibiting significantly lower propensities to invest in external R&D than their older counterparts. We explore the role of geographically bound social capital in moderating this liability. By employing a Nested Logit approach, our findings show that geographically bound social capital moderates the liability of newness related to R&D acquisition, suggesting that the liability exists only in regions associated with low levels of social capital.

    AB - External knowledge acquisition represents a precondition for firms’ competitive advantage. However, young firms find it particularly difficult to gain access to external sources of knowledge: young firms suffer from a liability of newness by exhibiting significantly lower propensities to invest in external R&D than their older counterparts. We explore the role of geographically bound social capital in moderating this liability. By employing a Nested Logit approach, our findings show that geographically bound social capital moderates the liability of newness related to R&D acquisition, suggesting that the liability exists only in regions associated with low levels of social capital.

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    KW - Social Capital

    KW - Lianility of Newness

    KW - Geography

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    KW - Social Capital

    KW - Liability of newness

    KW - Geography

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    PB - DRUID - Danish Research Unit for Industrial Dynamics

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