The Determinants of the Growth of Absorptive Capacity Based on an Open Innovation Perspective: A Case Study

Open innovation provides a framework how firms can benefit from external sources of knowledge. Absorptive capacity explains how firms can create an capture value from in-sourcing external knowledge. Therefore, absorptive capacity and open innovation should be linked to each other. In this study, we provide theoretical model and evidence from a case study how innovating firms in rapidly developing economies have to develop absorptive capacity through a combination of exploitation of the existing knowledge base, R&D investments, learning initiatives, and a open innovation net-work. This model, gives a better understanding how absorptive capacity is developed.