Novelty of innovation and the effect of existing and recently hired R&D human resources.

The decision taken by firms to invest in innovation oriented activities is an important strategic issue closely linked to their knowledge management process, especially when that decision involves the renewal of the necessary knowledge to protect themselves from obsolescence and imitation by competitors. This paper aims to analyse the effect of existing and recently hired R&D human resources on product innovation as well as their interaction, focusing on the degree of novelty of innovation. The results of an empirical research among 965 Spanish firms show that, although existing and recently hired R&D human resources have a positive individual effect on innovation, their interaction has a negative effect on the firm's product innovations. However, the results also highlight that the greatest likelihood of achieving product innovations with a higher degree of novelty occurs when the firm has a solid internal base of R&D human resources complemented by the hiring of R&D personnel. [ABSTRACT FROM AUTHOR]