While intangible resources are stic

While intangible resources are stickier than tangible resources(Ghemawat, EI, & Costa, 1993), both exploratory and exploitative innovations from R&D volatility erode architectural knowledge(Henderson & Clark, 1990). Lower volatility in intangible assets could result in core rigidities (Leonard-Barton, 1992) that result in the reduction in the efficacy of gains from R&D volatility. Examples of these consequences range from firms that produce hard-disk drives(Christensen, 1993) to firms that produce film photography (Lucas & Goh, 2009). In these cases, the firms' stocks of intangible assets faced significant declines.R&D volatility and intangible asset volatility can thus be complementary in improving a firm's performance. Hence, to appropriate gains from R&D volatility, renewing intangible assets could be essential.Renewing intangible assets such as human resources, brand value, and processes could complement the gains from R&D volatility. This leads to the third hypothesis:H3. The relation between R&D volatility and a firm's growth is strongerwith a higher level of intangible asset volatility.