“…A growing body of literature discusses and evaluates firms' innovation activities as crucial for the growth of firms, regions and countries (Fritsch et al, 2020;Whitacre, 2019;Klewitz & Hansen, 2014). Because innovation activities affect many aspects of competitive advantages, explicit attention is paid to the sources and drivers of innovation processes (Frangenheim et al, 2020;Godlewska-Dzioboń et al, 2019;Zygmunt J., 2017;Isaksen & Jakobsen, 2017;Edler & Fagerberg, 2017). One im-portant strand of literature has highlighted the effect of knowledge diffusion on innovation performance of firms (Tijssen & Winnink, 2017;Frangenheim et al, 2020;Rosenbusch et al, 2011).…”