New Product Development and Absorptive Capacity in Industrial Districts: A Multidimensional Approach

Exposito-Langa M., Molina-Morales F. X. and Capo-Vicedo J. New product development and absorptive capacity in industrial districts: a multidimensional approach, Regional Studies. This research studies to what extent the absorptive capacity of a firm influences its capacity to exploit new opportunities through new products, particularly in a specific context of industrial districts. A multidimensional approach to the absorptive capacity concept is used to distinguish between identification, assimilation, and exploitation of external knowledge. The population of companies belonging to a Spanish textile district is studied. Findings suggest that information and knowledge that a company receives from external sources provide the company with the necessary abilities to innovate. In the present case, the greater the absorptive capacity, the greater the innovation capacity for the company.