This paper examines the extent to which resources in a firm's network and cluster influence its ability to innovate and whether firms differ in their ability to leverage network and cluster resources. Using data from the U.S. semiconductor industry, we find that technological resources in a...

We examine the paradox of capabilities: although portfolio resources contribute to innovation success, and technologically capable firms have the ability to gain more such resources, firms' 'competency traps' and the tension between value creation and value protection reduce benefits from...