Effects on diversity of R&D sources and human capital on industrial performance

This study conducts a 9-year longitudinal analysis on the effects of diversity of R&D sources, diversity of human capital, innovation infrastructure and academic knowledge on industrial performance. Here, I suggest there is an inverse U-shaped relationship between diversity of R&D sources and industrial performance. Industrial performance is also related to diversity of human capital in a curvilinear (inverted U-shaped) manner. Moreover, innovation infrastructure negatively moderates the effect of diversity of R&D sources on industrial performance, while academic knowledge also negatively moderates the effect of diversity of R&D human capital on industrial performance. The fixed- and random-effects regressions are used to test the hypotheses in a panel data of 315 industry-year cases and the findings support our prediction. The results of this study can help reconciling contradictory findings from previous studies by demonstrating the potential impact of diversity on industrial performance.