The Role Of Extramural R&D And Scientific Knowledge In Creating High Novelty Innovations: An Examination Of Manufacturing And Service Firms In Spain

This paper studies the effect of extramural R&D and of scientific knowledge in the creation of high novelty innovations. We first argue that extramural R&D brings in higher benefits, but also higher costs, when trying to obtain high novelty vs. low novelty innovations. Second, we propose that extramural investments in scientific R&D allow the firm to access distant knowledge and to break the path dependence induced by its resource endowments....