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This article analyses of a set of factors that influence innovation intensity in service firms. The analysis focuses on a broad variety of inputs required for innovation including knowledge sources, types of innovation investment and activities to manage appropriability. The empirical analysis uses original firm-level data on a sample of service firms in Spain. Our results indicate that internal sources of knowledge (e.g., employees), acquisition of external technology, internal design and strategic protection have a positive influence on innovation performance.
Dioni Elche-Hotelano (2011) studied this question.