This paper explores the implications of a simple model of learning and innovation by firms. In this model R … learning and innovation, with learning responding to opportunities, innovation responding to learning and own R&D, and a stream …

consider the effects of sourcing, RJVs, and the firm's internal research on innovation, as defined by patents and new products …. Our results are that sourcing has little effect on innovation, but that RJVs and internal research increase innovation …. This suggests specialization: cost saving is the primary motivation for sourcing, while innovation is the primary …