The combination of a firm capability (i.e., ability to generate general purpose technologies) and a market structure condition (i.e., fragmentation of downstream submarkets) may encourage licensing in an industry. That is, the probability of licensing should increase when product markets are...

In this paper, we argue that those firms with higher levels of absorptive capacity can manage external knowledge flows more efficiently, and stimulate innovative outcomes. We test this contention with a sample of 2265 Spanish firms, drawn from the Community Innovation Surveys (CIS) for 2000 and...