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Innovation Through Vertical Relations Between Firms, Suppliers And Customers: A Study Of German Firms

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  • Najib Harabi

Abstract

Interfirm cooperative R&D agreements are becoming more frequent, as firms seek to avoid market failures and exploit the competitive advantages of collaborating vertically with suppliers on the one hand and customers on the other. This paper investigates the phenomenon of vertical R&D linkages in the context of German manufacturing firms, based on a survey conducted at the Centre for European Economic Research, Mannheim. The major finding is that vertical linkages have high prevalence, and that the most common mode of linkage involves informal exchange of technical knowledge, with formal linkages such as joint development teams and contractual R&D cooperation being less common.

Suggested Citation

  • Najib Harabi, 1998. "Innovation Through Vertical Relations Between Firms, Suppliers And Customers: A Study Of German Firms," Industry and Innovation, Taylor & Francis Journals, vol. 5(2), pages 157-179.
    • Handle: RePEc:taf:indinn:v:5:y:1998:i:2:p:157-179
    DOI: 10.1080/13662719800000009
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    References listed on IDEAS

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    1. Klevorick, Alvin K. & Levin, Richard C. & Nelson, Richard R. & Winter, Sidney G., 1995. "On the sources and significance of interindustry differences in technological opportunities," Research Policy, Elsevier, vol. 24(2), pages 185-205, March.
    2. Nadiri, M.I., 1993. "Innovations and Technological Spillovers," Working Papers 93-31, C.V. Starr Center for Applied Economics, New York University.
    3. M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc.
    4. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, January.
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    Cited by:

    1. Bonte, Werner & Keilbach, Max, 2005. "Concubinage or marriage? Informal and formal cooperations for innovation," International Journal of Industrial Organization, Elsevier, vol. 23(3-4), pages 279-302, April.
    2. Dzikowski Piotr, 2016. "The Importance of Vertical Linkages for the Innovation Activity of Medium-High and High Technology Industries in Poland," International Journal of Management and Economics, De Gruyter Open, vol. 51(1), pages 90-103, September.
    3. Tomlinson, Philip R., 2010. "Co-operative ties and innovation: Some new evidence for UK manufacturing," Research Policy, Elsevier, vol. 39(6), pages 762-775, July.
    4. Najib Harabi, 2002. "The Impact of Vertical R&D Cooperation on Firm Innovation: An Empirical Investigation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 93-108.
    5. Tran, Tat Thanh & Zikos, Vasileios, 2017. "R&D networks among suppliers and manufacturers," Economic Modelling, Elsevier, vol. 60(C), pages 151-161.
    6. G. Rossini, 2005. "Pitfalls in private and social incentives of vertical crossborder outsourcing," Working Papers 536, Dipartimento Scienze Economiche, Universita' di Bologna.
    7. Bönte, Werner & Wiethaus, Lars, 2005. "Knowledge Transfer in Buyer-Supplier Relationships - When It (Not) Occurs," RWI Discussion Papers 34, RWI - Leibniz-Institut für Wirtschaftsforschung.
    8. Werner Bönte & Lars Wiethaus, 2005. "Knowledge Transfer in Buyer-Supplier Relationships – When It (Not) Occurs," RWI Discussion Papers 0034, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    9. Tomlinson, Philip R. & Fai, Felicia M., 2013. "The nature of SME co-operation and innovation: A multi-scalar and multi-dimensional analysis," International Journal of Production Economics, Elsevier, vol. 141(1), pages 316-326.
    10. repec:zbw:rwidps:0034 is not listed on IDEAS
    11. Banerjee, Samiran & Lin, Ping, 2003. "Downstream R&D, raising rivals' costs, and input price contracts," International Journal of Industrial Organization, Elsevier, vol. 21(1), pages 79-96, January.

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