Family-managed firms, external sources of knowledge and innovation

This study examines the influence of external sources of knowledge on innovation in a sample of Spanish manufacturing firms during the period 2002–2015. By differentiating firms according to their family status, our results reveal that the probability of engaging in product and process innovations is higher for family-managed firms involved in R&D cooperation with a varied group of partners. Additionally, our findings provide support for the role of R&D-oriented family-managed firms in easing the flow of knowledge and information for innovation at regional level (i.e. family firm-led knowledge spillovers). Because of their unique social capital and embeddedness in the local setting, family-managed firms contribute to creating a favourable regional environment for innovation for all co-located firms. However, this result holds only when the geographical concentration of R&D-oriented family-managed firms is coupled with technological proximity. Theoretical, policy and managerial implications are discussed.