We test the hypothesis that large firms devote a higher proportion of their expenditure on research and development (R&D) on process innovation than smaller firms.

We test the hypothesis that large firms devote a higher proportion of their expenditure on research and development (R&D) on process innovation than smaller firms.

This paper provides a conceptual model that explains how organizational knowledge, capabilities, and products co-evolve over long time spans, and how this can result in competitive advantage through innovation and strategic linkage of products at a point in time and over time.