Making the development of technological innovations more efficient: An exploratory analysis in the biotechnology sector

The current study analyzes the processes involved in obtaining technological innovations. Conclusive results are lacking in the literature, so this work defines and empirically tests a model of the relations between the firm's innovative capacity and the different ways of accumulating knowledge and the decision whether or not to codify it. Also, the model takes into account whether the innovations obtained are radical or incremental.The empirical study uses a sample of Spanish biotechnology firms, and the results show that accumulating knowledge using internal sources and not codifying it significantly improves the firm's capacity to develop radical innovations. The results also show that knowledge codification speeds up the development of incremental innovations. The relation between incremental innovations and the sources of knowledge is not so clear, although the results suggest the possible existence of a nonlinear relation between the two variables.