Combining effects of internal resources, entrepreneur characteristics and KIS on new firms

Abstract

Both entrepreneurship and innovation are perceived as crucial activities that fuel the economic development of regions. Considering transfers of knowledge as one of the functions of knowledge intensive services (KIS), this research uses a sample of new innovative firms located in the Valencian region (Spain) to offer valuable insights into how new firms benefit from the external resources provided by public and private KIS. While internal resources amplify the contribution of KIS to a firm's performance, the entrepreneur's human capital, in contrast, does not. Furthermore, the findings show that the combined use of private- and public-supported KIS results in stronger early performance for new firms. Finally, the paper suggests a set of implications for academics, practitioners, and policymakers.