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 language | English |
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Place of Publication | Frederiksberg |
Publisher | DRUID - Danish Research Unit for Industrial Dynamics |
Number of pages | 35 |
ISBN (Print) | 9788778733078 |
Publication status | Published - 2010 |
Keywords
- Research and Development
- Social Capital
- Lianility of Newness
- Geography