The Global Research-and-Development Network and Its Effect on Innovation

The authors examine the impact of a firm's innovation by analyzing its position in a global research-and-development network and its orientation toward using scientific knowledge (science intensity). Drawing on organizational learning and network theory research, they focus on the moderating role of a firm's network position in the relationship between the firm's science intensity and the impact of its innovation. Data derived from the global pharmaceutical industry indicate that a firm's science intensity enhances the impact of its innovation by facilitating effective search. This relationship is reinforced when the firm has network resources derived from an efficient network position. These results support the idea that the impact of innovation is strengthened when internal research capability and external network resources are combined. This study, which is conducted in a global industry network context, also enables the authors to examine the role of international gatekeepers in bridging ties across U.S., Japanese, and European geographic boundaries.