This article presents empirical evidence on the effects of external knowledge-sourcing strategies on the development of both product and process innovations, and assesses the degree to which such effects are influenced by the firm's internal technological capacities. In our analysis, we consider two strategies for acquiring external knowledge (buying and cooperating) and two types of external sources (industrial agents and scientific agents). The analysis is based on a sample of 1329 manufacturing firms active in innovation activities taken from the Spanish Survey of Technological Innovation 2004. We find that the effects of the knowledge-sourcing strategies differ significantly across innovation types (product or process innovation). In addition, our results indicate that although internal R&D activities are associated with a greater use of external scientific knowledge sources (through cooperation), they do not seem to promote their exploitation for innovation development, that is, to say, they do not have synergistic effects.

This paper focuses on the role of human capital in reducing the barriers to firms' engagement in innovation activities. The paper distinguishes between firms facing barriers that stop them from engaging in any innovation activity, and firms that face impediments in the course of their innovation activity. We investigate whether human capital has a particularly strong impact in relation to lowering barriers among the former group of firms, since a strong skill base is likely to compensate for lack of experience in innovation-related activities or the complementary assets needed for innovation. We draw on four waves of the Spanish Innovation Survey and examine the impact of human capital on three types of obstacles to innovation: cost, knowledge and market barriers. We find that human capital has a significant impact on reducing the barriers to innovation represented by knowledge shortages and market uncertainties.