Technological innovation capability creation potential of open innovation: a cross-level analysis in the biotechnology industry

The primary objective of this study is to investigate the ability of open innovation and intra-organisational learning mechanisms to spur technological innovation capability. Accordingly, this study devises a multi-level model for examining the links between contextual variables and collects data via a multi-informant questionnaire. This study applies hierarchical linear modelling (HLM) to examine three hypotheses. Using a matched dyadic data set from a study of 328 R&D employees and 33 supervisors sampled from 33 biotechnology firms, the HLM results clearly demonstrate how open innovation moderates the relationship between internal learning and technological innovation capability. These results suggest that internal learning strengthens the technological innovation capabilities of an R&D team. Specifically, the relationship between internal learning and technological innovation capability is stronger when R&D teams adopt open innovation. Moreover, this paper offers a contribution to understanding the cross-level and external-internal aspects of open innovation by adding multi-level analysis of biotechnology firms.