when investments required are substantial access to external investment can be critical investors however may not have confidence in the project s potential may not be able to assess the entrepreneurs ability to manage the project and its risks or simply may not be aware of the existence of the project skilled individuals can help generate new knowledge and innovations are more able to recognise the value of knowledge created elsewhere absorb it and apply it to new commercial ends cohen and levinthal and can support firms in identifying business opportunities and help them adapt to changing environments