External resources. Since external R&D resources are complementary to internal R&D accumulation for improving a firm’s innovation (Inkpen, 1996; Lin, 2003), this study also needs to control such impacts of external R&D resources, including R&D alliances and public subsidies, on firm innovation. Thus, this research measures external
R&D alliances and public subsidies by collecting primary data with a five-point scaled item through a questionnaire survey. External R&D alliances include three items: “Commitments to joint projects with universities”, “Commitments to joint projects with research institutions”, and “Commitments to joint projects with competitors” (Lee,
Lee, & Pennings, 2001). Public subsidies include an item: “Receiving licensed or transferred technologies from the governmental sector” (Grupp, 1997).