ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION

@article{Cohen1990ABSORPTIVECA,
  title={ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION},
  author={Wesley M. Cohen and Daniel A. Levinthal},
  journal={Administrative Science Quarterly},
  year={1990},
  volume={35},
  pages={128-152}
}
Discusses the notion that the ability to exploit external knowledge is crucial to a firm's innovative capabilities. In addition, it is argued that the ability to evaluate and use outside knowledge is largely a function of the level of prior related knowledge--i.e., absorptive capacity. Prior research has shown that firms that conduct their own research and development (R&D) are better able to use information from external sources. Therefore, it is possible that the absorptive capacity of a firm… 

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