DOES INNOVATION EXPERIENCE AFFECT ENTERPRISE PERFORMANCE FROM INTER-FIRM COLLABORATION AND R&D INVESTMENTS?

Abstract

Purpose: Previous research shows that inter-firm collaboration and R&D investments have positive effects on enterprises’ product innovation performance. This study aims to assess if the performance effects are moderated by enterprises’ innovation experience. i.e., does the experience increase or decrease the innovation performance from inter-firm collaboration and R&D investments? Methods: Norwegian enterprise panel regressions between 2004 and 2016 were done on data provided by Statistics Norway. Results and implications: Consistent with the previous research, inter-firm collaboration increases enterprises’ product innovation performance. Also, R&D investments increase product innovation performance but at an exponentially decreasing rate that eventually turns negative. A novel contribution is that the results are consistent, independent of innovation experience. It implies that inexperienced and experienced enterprises have an equal absorptive capacity to innovate from inter-firm collaboration and R&D investments. Independent of innovation experience, enterprise revenues furthermore increase from new products as a function of R&D investments at an exponentially increasing rate.