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This paper investigates the influence of human resource management practices on the likelihood that a firm performs in-house Research and Development (R&D). The latter is broadly interpreted as learning?a mechanism to promote the absorptive capacity and supporting technology capability-building in latecomer firms. The use of distinct definitions of R&D implies different knowledge requirements that firms need to fulfill in order to innovate. The analysis assumes that firms can choose between two learning strategies: they may exploit existing knowledge, or perform more complex explorations and acquire new knowledge.
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