Does combining analytical and synthetic knowledge benefit eco‐innovation? Evidence from Norway

Abstract Analytical or synthetic knowledge is widely considered beneficial for eco‐innovation (EI). For a firm, analytical and synthetic knowledge can be acquired externally through collaboration with various partners or generated internally through R&D and other internal firm activities. However, evidence supporting the assumption that both forms of knowledge are complementary and that “doing more of all” will benefit EI is unclear. We found that external analytical and synthetic knowledge and internal analytical and synthetic knowledge all positively affect EI, with internal analytical being the most prominent. However, combining analytical and synthetic knowledge may not be beneficial for EI. The interaction between analytical and external synthetic knowledge is generally substitutive. We found a particularly significant substitutive effect between internal analytical and internal synthetic knowledge, as well as between internal analytical and external synthetic knowledge. In short, we found little evidence of complementarity between analytical and synthetic knowledge, regardless of where it is acquired from. These findings advise caution to firm managers and policymakers who are considering strategies to combine different forms of knowledge from different sources to successfully achieve EI goals.