Cross-border R&D Alliances, Absorptive Capacity and Technology Learning

Drawing from research on alliance learning, we develop a model of technology learning by integrating technological capabilities and alliance knowledge in a framework of absorptive capacity. We also differentiate between absolute and relative components of absorptive capacity. Our study of the chemical-pharmaceutical industry found that technology learning was higher when firms were quick to adopt new technologies and when they have accumulated experience via alliances. Among alliances, cross-border R&D alliances have the strongest effect on technology learning. Overall, the findings show the pronounced effect of absolute absorptive capacity on technology learning.