Educational level of researchers in spin-out R&D units and external technology acquisition: The higher, the more?

Spin-out R&D units play an important role in supporting the innovation strategies of firms. This study aims to address the question of whether and how the educational level of researchers in spin-out R&D units affects firms’ external technology acquisition. Building on the literature on absorptive capability, we argue that a high educational level of researchers in spin-out R&D units helps identify, absorb, and apply external technologies, thereby promoting firms to acquire technologies externally. Furthermore, the positive effect is amplified when firms face high task intensity or intense market competition. By contrast, the effect is weakened when the technology transaction norms are strong. Using a unique dataset of manufacturing firms in a province in eastern China, we validate our theoretical framework empirically and offer several managerial and policy implications.