The paper develops a framework and an understanding of the external knowledge absorption in nature-based tourism companies. The concept of potential absorptive capacity is the starting point for exploring how external knowledge (tacit and explicit) is absorbed and assimilated in tourism innovation processes. Although knowledge is the engine that drives innovation, tourism firms can have problems and challenges when trying to absorb external knowledge for innovation. The main challenge is to access and absorb tacit knowledge. This type of knowledge is personal and sticky and therefore difficult to acquire and assimilate into the existing knowledge pool of organizations. Tacit knowledge is also difficult to imitate and is 2 therefore important for developing original and competitive innovations. In this study, knowledge acquisition and assimilation processes and how knowledge challenges are handled are investigated by adopting a multiple, qualitative case-study strategy that focuses on three Icelandic whale-watching firms. This study contributes to the tourism innovation discussion by identifying tourism specific abilities for the acquisition and assimilation of knowledge. The sense-making and strategic interpretation of this knowledge are considered to be important subsequent steps in the innovation process.

This paper contributes to a better understanding of the absorption of scientific knowledge in tourism innovation processes. Based on a synthesis of the literature and empirical study we present the model of Innovation through Co-creation. The cases of researchers working together with three whale-watching firms have allowed us to illustrate examples of co-creation, knowledge sharing and reflexivity during tourism firms' innovation processes. Intensive interaction of the tourism industry with researchers pays off in terms of innovation because flows of knowledge are intimately linked to social capital developed through intensive and frequent shared practice. Besides the theoretical implications of our model, we contribute to the field by providing practical implications for how tourism firms can organize their learning and innovation processes. a b s t r a c t This paper contributes to a better understanding of the absorption of scientific knowledge in tourism innovation processes. Based on a synthesis of the literature and empirical study we present the model of Innovation through Co-creation. The cases of researchers working together with three whale-watching firms have allowed us to illustrate examples of co-creation, knowledge sharing and reflexivity during tourism firms' innovation processes. Intensive interaction of the tourism industry with researchers pays off in terms of innovation because flows of knowledge are intimately linked to social capital developed through intensive and frequent shared practice. Besides the theoretical implications of our model, we contribute to the field by providing practical implications for how tourism firms can organize their learning and innovation processes.

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