The search for innovation has traditionally been viewed as an outward exploration into distant domains. This study introduces the concept of an “inward shift,” which occurs when new mapping criteria for assessing the relatedness of knowledge domains reframe the distance between those domains. By revealing previously unrecognized interdomain similarities, these criteria bring certain distant domains inward, closer to firms’ existing expertise, making new opportunities relevant for them. I leverage the release of The Cancer Genome Atlas (TCGA) data that mapped different cancer types based on genomic criteria. These findings revealed genetic similarities between previously distinct cancer types, effectively bringing some cancers closer to firms’ existing expertise. Using a difference-in-differences approach with data on 4,263 oncology firms from 2000 to 2017, I find that firms are more likely to enter the domains revealed as similar to their existing expertise. However, whereas generalist firms respond more readily to these opportunities, specialists ultimately engage more deeply with the new criteria. This paper contributes to the innovation search literature by showing how new mapping criteria shift firms’ searches from outward to inward explorations, offering a novel perspective on how firms innovate.
