I'll Find it Where I Can: Exploring the Role of Resource and Financial Constraints in Search Behaviour among Innovators

The search for new knowledge is often driven by problems that firms face in their innovative activities. Although a considerable effort has been made to explore the search for innovation, little attention has been placed on the concept of problemistic search. Indeed, there are only few studies that examine how the challenges that firms face in their innovation processes shape the nature and direction of their search activities. Using the Finnish Innovation Survey, this study explores the impact of different types of problems on the use of internal and external knowledge sources. The results show that firms under resource constraints tend to use external sources of knowledge in their search activities rather than internal ones. However, those firms who are constrained by finance tend to search both internally <italic>and</italic> externally. The paper explores the implications of these results for theory and future empirical research.