Recombination for Resilience: Corporate R&D Teams and Climate Innovations

ABSTRACT This study examines the role of domain knowledge diversity within corporate R&D teams and its impact on the development of significant innovations in the Climate Change Mitigation Technologies (CCMTs) sector. The research emphasizes the moderating effects of team size, embeddedness, and interconnectivity on the relationship between domain knowledge diversity and high‐impact innovations. Analyzing 10,293 CCMT patents filed with the USPTO by 28 Japanese automotive companies between 1994 and 2016, findings reveal that knowledge diversity is crucial for impactful climate technology innovations, and its benefits are amplified in larger teams with a broader expertise range. Moreover, deeply embedded teams with shared values and trust, combined with higher interconnectivity, effectively leverage domain knowledge diversity to drive premier climate technology innovations. This study contributes to theory in green R&D management by highlighting the importance of domain knowledge diversity in corporate R&D teams for groundbreaking climate technology innovations, demonstrating the advantages of this diversity in larger teams, and elucidating the synergistic dynamics of team embeddedness and inter‐team connectivity. Practically, the research suggests that businesses addressing climate change should emphasize domain knowledge diversity and nurture intra‐organizational networks to enhance R&D initiatives and foster sustainable advancements.