Abstract
In this dynamic and full-opportunity world, firms must face challenges in markets and technologies. One of the main assets that firms can use to address these challenges is innovation, and an important element is to define the most appropriate innovation strategy. Inside innovation strategy, fundamental decisions are about selection, acquisition, and timing. Selected the innovations to develop; and how to acquire the innovation with respect to timing, firms are heterogeneous and two main approaches can be identified: to be technological leaders and technological followers. In this paper, the two approaches have been investigated to study the impact on the firm’s performance. To conduct this investigation, the Patent Agent-Based Innovation Model and Simulator (PABIM) has been enhanced. The PABIM is characterized by heterogeneous firms that are organized as a directed random graph. The use of an agent-based model allows for the exploration of emergent dynamics and their subsequent effects on performance. The results indicate that when a firm can adopt all the acquisition strategies (make, buy, collaborate), the optimal strategy concerning timing for firm performance is the leaders’ approach, independently of the sector innovation intensity. The study recommends that managers and policymakers adopt a comprehensive approach to innovation management, integrating pertinent technical knowledge related to product or process development with the necessary resources for effective implementation.