The impact of scientific capability on valuable innovation

Abstract

Our paper tests the influence of two types of capabilities of firms (1) capability to generate scientific knowledge (2) capability to apply scientific knowledge to technology development, on their innovation performance. Capability to generate scientific knowledge is measured based on the extent to which the firm has generated scientific publications. Capability to apply scientific knowledge to technology development is measured based on the extent to which the firm refers to scientific publications in its patents. Our results show that firms' competency in science as revealed by its scientific publications does not guarantee valuable innovation. It is only through their capability of applying scientific knowledge to technology development process that firms can transform their scientific competency into valuable innovation. The main contribution of our research is that firms need to be adept in bridging the gap between their scientific capability and technology development process so as to create valuable innovation. © 2006 IEEE.