Types of learning in complex technological innovations

This paper examines how the knowledge base of a firm affects the generation of combinatorial innovations. Recent insights in the literature on organizational learning suggest that the degree of integration among bodies of specialized technological knowledge affects the outcomes of the innovation process. However, the literature is still in its infancy in terms of the relationship between the structure of the knowledge base and the degree of technological complexity of innovations. The present study aims at understanding this relationship. We take as our empirical case hydrocracking, a rather mature technology widely applied in the oil industry. Innovations in hydrocracking are based on the combination of elementary technologies relative to three technology areas: feeds and products, catalyst preparation, and refinery processing. Using detailed patent information, we find that a specialized knowledge base enables the generation of innovations characterized by both high and low levels of complexity – i.e. encompassing both few and many multiple technological domains, while related knowledge matters only for low-complexity innovations.