International knowledge transfer in the biotechnology industry: The case of American and Japanese firms

Abstract

This research examines international knowledge transfer and organizational learning in the biotechnology industries in Japan and the U.S. This study is one of the first to consider the location of the knowledge resource and that location's relationship with innovative output in the biotechnology industry. The paper also considers the differences in industrial environments in which Japanese and U.S. biotech firms compete. Results suggest that biotechnology firms that look to foreign competitors for knowledge resources upon which to build have greater innovative outputs than firms that focus only on knowledge from domestic sources. The findings also suggest that foreign knowledge has a stronger relationship to overall innovation than does domestic knowledge for both Japanese and U.S. firms.