This study has examined the role of internal and external resources in the innovation
performance of Thai manufacturers. It has found direct and positive relationships between
the development of a differentiation strategy and development of internal and external
resources. However, only internal resources positively and directly impacted innovation
performance while external resources can potentially indirectly affect innovation
performance by influencing internal resources. The study had also discussed the role of
national regulators such as the NIA in the improvement of innovation performance.