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| Author: | Cuervo-Cazurra, A. Un, C.A. |
| Title: | Why some firms never invest in formal R&D |
| Journal: | Strategic Management Journal
2010 : JUL, VOL. 31:7, p. 759-779 |
| Index terms: | companies R&D investments technology knowledge resources theories |
| Freeterms: | real options capabilities knowledge-based view |
| Language: | eng |
| Abstract: | This paper explores the frequency of formal R&D investments. Real options theory is linked to the knowledge-based view in order to explain how a firms's knowledge resources (herein as: knw-rcs.) influence its frequency of investing in R&D to establish technological options. Particularly, it is proposed that a firm lacking internal knw-rcs. is more likely to never invest in R&D. A firm with both internal and external knw-rcs. is more likely to sometimes invest in R&D, while a firm with internal knw-rcs. but lacking external knw-rcs. is more likely to always invest in R&D. |
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