Li, Rebecca Yu, Yan, Karena Ji, Yao, Nengzhi, Tian, Kun, Xia, Senmao, Yang, Xiao-hui, Xiong, Yu (2022) Abandoning innovation projects, filing patent applications and receiving foreign direct investment in R&D. Technovation, 114 . Article Number 102435. ISSN 0166-4972. E-ISSN 1879-2383. (doi:10.1016/j.technovation.2021.102435) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:97906)
The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication) | |
Official URL: https://dx.doi.org/10.1016/j.technovation.2021.102... |
Abstract
Foreign direct investment in R&D is one of the popular channels indigenous firms use to upgrade their technological capacities and improve market intelligence following innovation setbacks. Firms often employ various signals to secure higher levels of foreign direct investment in R&D. However, the majority of research on this topic focuses on the role of positive rather than negative signals. Firms are often conservative about communicating negative information regarding their innovation projects due to concerns around competition and managerial performance appraisal. Drawing on signaling theory, this study investigates the impact of a negatively valenced signal – the experience of abandoning innovation projects – on attracting foreign direct investment in R&D. Moreover, although firms are known to send multiple signals simultaneously, little is known about how the interactions between oppositely valenced signals (specifically, the experience of abandoning innovation projects, which is a negative signal, and the filing of patent applications, which is a positive signal) affect foreign direct investment in R&D. A study of 11,354 Spanish firms from the Spanish Technological Innovation Panel during the period 2008–2015 found that the experience of abandoning innovation projects has a positive effect on foreign direct investment in R&D. However, this positive effect is weakened by patent applications due to the signaling of conflicting messages. These results have important theoretical and practical implications for the advancement of signaling theory and the management of innovation setbacks. © 2021 Elsevier Ltd
Item Type: | Article |
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DOI/Identification number: | 10.1016/j.technovation.2021.102435 |
Uncontrolled keywords: | Competition; Investments; Patents and inventions, Abandoned innovation; Foreign direct investment in R&D; Foreign direct investments; Innovation programs; Market intelligence; Multiple signal; Negative information; Negative signal; Patent applications; Signaling theory, Signaling |
Subjects: | H Social Sciences |
Divisions: | Divisions > Kent Business School - Division > Department of Marketing, Entrepreneurship and International Business |
Funders: | University of East Anglia (https://ror.org/026k5mg93) |
Depositing User: | Kun Tian |
Date Deposited: | 10 Nov 2022 10:04 UTC |
Last Modified: | 04 Mar 2024 19:51 UTC |
Resource URI: | https://kar.kent.ac.uk/id/eprint/97906 (The current URI for this page, for reference purposes) |
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