Abstract:
This paper explores the relationship between external knowledge sources and absorptive
capacity on the one hand and the innovative performance of agricultural research and
development institutes in Sri Lanka. Following the literature, we first identify the different
types of knowledge sources available to research and development institutions and analyse
the ease with which they can access them. The institutions also acquire external knowledge
from publications and by attending conferences. Secondly, we test and see whether external
knowledge sources lead to higher innovation performance. Based on survey data, our
empirical results show that institutes with fewer departments are more innovative and that
higher organizational absorptive capacities result in a higher level of innovative output.
Interestingly, formal and reliable knowledge sources contribute to higher innovative
performance. Anyhow, higher absorptive capacity without engagement in external interaction
reduces the innovative performance of research and development institutes. Moreover, this
empowers agricultural research and development institutes to engage in more collaborative
research approaches to achieve higher levels of innovation performance.
