Internalization of R&D outsourcing: An empirical study

From the absorptive capacity perspective, this study investigates the extent to which a firm that uses external knowledge attained through R&D outsourcing can increase its performance, and how this effect is moderated by a firm's absorptive capacity via internal R&D efforts and organizational composition of the firm's R&D division. More specifically, we use R&D intensity, a traditional measure of absorptive capacity, and five variables of organizational composition to measure their moderating effect between R&D outsourcing effort and the firm's resulting performance.