The article introduces a new way of looking at innovation in companies, focusing on the resources they have. By studying 257 chief operations officers in the US, the researchers found that companies with both knowledge-based and property-based resources tend to innovate in both products and processes. Companies with a lot of knowledge-based resources focus more on process innovation. Companies with few of these resources tend to do less research and development. In a changing market, process innovation is crucial, while in a stable market, product innovation is key. This new approach helps us understand innovation better than the traditional model.