The hypotheses were tested via the analysis of data that were collected from a range of different databases, but were restricted to manufacturing companies in the USA. The composite dataset that was developed contained information on 211 companies. The existence of firm-specific knowledge was measured via looking at patent application included citations of other company patents, this represented evidence of the development of firm-specific knowledge. Which is developed cumulatively and iteratively. The provision of long-term employee benefits was measured via data on factors as diverse as whether companies had good union relations. Had ‘no layoff’ policies, encouraged employee involvement, and had good health and safety records.