LAUSR

This paper investigates whether and how the relationship between knowledge maturity and innovation value depends on firm age and size. Thus, we seek to advance the search and recombinant perspective of innovation by revealing that the successful recombination of knowledge inputs of different ages is strictly related to structural characteristics of innovating firms. Specifically, we contend that older firms outperform younger ones when they employ mature knowledge; conversely, younger firms are more able to exploit nascent and middle-aged knowledge. Regarding firm size, we expect that larger firms present a greater capability to innovate by using both nascent and very-well mature knowledge, while smaller firms develop more valuable innovative solutions when they build upon knowledge with a moderate level of maturity. These ideas are empirically tested on a sample of 5575 patented inventions registered by 298 biotechnology firms at the U.S.PTO., and our results offer support for the proposed conjectures.