The Role Of Extramural R&D And Scientific Knowledge In Creating High Novelty Innovations: An Examination Of Manufacturing And Service Firms In Spain

•We examine the effect of extramural R&D and scientific knowledge on product innovation.•Extramural R&D is more relevant for high novelty than for low novelty innovations.•Scientific knowledge is more critical for high novelty innovation than for low novelty innovation.•Non-scientific knowledge is more beneficial than scientific knowledge, no matter the nature of the innovation.•The risks of excessively relying on extramural R&D are high.