Technological radicalness, R&D internationalization, and the moderating effect of intellectual property protection

Abstract

Drawing on insights from the resource-based view of the firm, this paper examines the link between the radicalness of the firm's technologies and the extent of its exploitation and exploration R&D activities abroad, with an additional focus on the level of the host country's intellectual property (IP) protection as a force moderating this link. It uses information about greenfield foreign direct investment by 185 U.S. publicly-traded manufacturing firms in the period 2003–2013 to demonstrate that technological radicalness is positively associated with the number of exploration and exploitation R&D projects. While the level of IP protection is shown to have a moderating effect, this is nuanced: firms with more radical technologies pursue more exploration R&D projects in countries with stronger IP protection; in turn, the number of exploitation R&D projects is driven by those undertaken in countries with weaker IP protection. The findings have both managerial and policy implications.

Description

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link. Open access article.

Keywords

Technological radicalness, R&D internationalization, Intellectual property protection, Exploration vs. exploitation, Manufacturing companies

Citation

Nasirov S., Gokh I., Filippaios F. (2022) Technological radicalness, R&D internationalization, and the moderating effect of intellectual property protection. Journal of Business Research, 145, pp. 215-227.

Rights

Research Institute

Centre for Enterprise and Innovation (CEI)