In neoclassical theory resources are inputs into the production function such as capital, land, labor, and technology. In the new framework, resources also include competenties and capabilities and thereby the knowledge held in the firm. The focus is on the technological capabilities of the firm. In order to do so it is necessary to clarify what capabilities and competencies mean, what technological capabilities are, and finally to clarify how they are related to each other and to the overall notion of the resources of the firm.