The Nature of Knowledge and Decisions on Activity Sourcing: An Innovation Model

The main drivers for R& D collaboration uncovered by the economic literature are the access to external cognitive capabilities and costs. Very seldom the nature of knowledge has been considered a determining factor for activity externalisation. This paper analyses the role of the nature of knowledge in the locus of innovation. Then, a knowledge management model for the internalisation of innovative activities is developed. The model proposed allows executives to summarize their strategic reflection about innovation, leading to a more coherent decision making process. The research is implemented to the innovative activities performed by Spanish firms in the agro-chemical industry. The empiri…