The aim of this paper is to highlight the determinants of firms ability to recombine diverse knowledge types within their organization. For this purpose, the paper argues that the balance between exploration and exploitation is critical. In particular, two problems can inhibit firms from effectively recombining diverse knowledge. Firstly, the risk of excessive technological deepening can limit the range of distant knowledge fields that the firm choses to access in its exploration activities. In this case the firm is more favourable to knowledge which is closer to its competences. Such selectivity can be critical if the firm adopts open innovation strategies to access knowledge from outside. Secondly, even if the firm diversifies technologically and has access to distant knowledge, it may not be able to effectively combine these diverse knowledge types within its boundaries. Internal networks may have a critical role in this process. The effect of technological deepening and inventor networks on recombinative capabilities are analysed through a regression analysis performed on patents taken by ICT firms. Some preliminary results reveal that the density of networks within the firm is a critical complement to open innovation strategies. Firms with dense inventor networks have higher recombination capabilities. At the same time, excessive technological deepening has a negative effect on recombinative capability.
