IDEAS home Printed from https://ideas.repec.org/a/wsi/ijitmx/v15y2018i01ns0219877018500037.html
   My bibliography  Save this article

The Role of R&D Cooperation in Firm Innovation

Author

Listed:
  • Luca Pennacchio

    (Department of Business and Economics (DISAE), Parthenope University of Naples, Via General Parisi 13, 80132 Naples, Italy)

  • Giuseppe Piroli

    (Directorate-General for Employment, Social Affairs and Inclusion, European Commission, B-1049 Brussels, Belgium)

  • Otello Ardovino

    (Economic and Statistical Department, Autorità per le Garanzie nelle Comunicazioni (AGCOM), Centro Direzionale, 80143 Napoli NA, Italy)

Abstract

The present paper investigates the role of research and development (R&D) cooperation in firm innovation. In particular, we evaluate the direct impact of cooperation on firm innovation and its moderating effect on the relationship between internal R&D and innovation. The empirical analysis is based on a large sample of Italian firms drawn from the Sixth Community Innovation Survey. We estimate a multivariate probit model which takes into account the complementarity of different types of innovation and the heterogeneity in the choice of cooperation partners. The estimation results indicate a strong and positive effect of non-competitive collaborations with suppliers, clients and private research institutes on the different types of firm innovation. Collaborations with universities enhance organizational innovations but have weak effects on the other types of innovations. Also cooperation with competitors positively affects firms’ innovations, especially in the case of organizational innovations. On the other hand, moderating effects are scant and restricted to some forms of non-competitive cooperation.

Suggested Citation

  • Luca Pennacchio & Giuseppe Piroli & Otello Ardovino, 2018. "The Role of R&D Cooperation in Firm Innovation," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 1-27, February.
    • Handle: RePEc:wsi:ijitmx:v:15:y:2018:i:01:n:s0219877018500037
    DOI: 10.1142/S0219877018500037
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219877018500037
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219877018500037?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Czarnitzki, Dirk & Kraft, Kornelius & Thorwarth, Susanne, 2009. "The knowledge production of 'R' and 'D'," Economics Letters, Elsevier, vol. 105(1), pages 141-143, October.
    2. Geweke, John, 1989. "Bayesian Inference in Econometric Models Using Monte Carlo Integration," Econometrica, Econometric Society, vol. 57(6), pages 1317-1339, November.
    3. A. Bellucci & L. Pennacchio, 2016. "University knowledge and firm innovation: evidence from European countries," The Journal of Technology Transfer, Springer, vol. 41(4), pages 730-752, August.
    4. Keane, Michael P, 1994. "A Computationally Practical Simulation Estimator for Panel Data," Econometrica, Econometric Society, vol. 62(1), pages 95-116, January.
    5. René Belderbos & Martin Carree & Boris Lokshin & Juan Fernández Sastre, 2015. "Inter-temporal patterns of R&D collaboration and innovative performance," The Journal of Technology Transfer, Springer, vol. 40(1), pages 123-137, February.
    6. Kulwant Singh & Will Mitchell, 2005. "Growth dynamics: the bidirectional relationship between interfirm collaboration and business sales in entrant and incumbent alliances," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 497-521, June.
    7. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August.
    8. Hagedoorn, John, 2002. "Inter-firm R&D partnerships: an overview of major trends and patterns since 1960," Research Policy, Elsevier, vol. 31(4), pages 477-492, May.
    9. Jennifer Percival & Brian Cozzarin, 2008. "Complementarities Affecting the Returns to Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 15(4), pages 371-392.
    10. Lim, Kwanghui, 2004. "The relationship between research and innovation in the semiconductor and pharmaceutical industries (1981-1997)," Research Policy, Elsevier, vol. 33(2), pages 287-321, March.
    11. Tsang, Eric W. K., 1999. "A preliminary typology of learning in international strategic alliances," Journal of World Business, Elsevier, vol. 34(3), pages 211-229, October.
    12. Hajivassiliou, Vassilis & McFadden, Daniel & Ruud, Paul, 1996. "Simulation of multivariate normal rectangle probabilities and their derivatives theoretical and computational results," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 85-134.
    13. Peters, Bettina & Lööf, Hans & Janz, Norbert, 2003. "Firm Level Innovation and Productivity: Is there a Common Story Across Countries?," ZEW Discussion Papers 03-26, ZEW - Leibniz Centre for European Economic Research.
    14. Lewandowska, Małgorzata Stefania & Szymura-Tyc, Maja & Gołębiowski, Tomasz, 2016. "Innovation complementarity, cooperation partners, and new product export: Evidence from Poland," Journal of Business Research, Elsevier, vol. 69(9), pages 3673-3681.
    15. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
    16. Arvind Parkhe, 1991. "Interfirm Diversity, Organizational Learning, and Longevity in Global Strategic Alliances," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(4), pages 579-601, December.
    17. John Hagedoorn, 1993. "Understanding the rationale of strategic technology partnering: Interorganizational modes of cooperation and sectoral differences," Strategic Management Journal, Wiley Blackwell, vol. 14(5), pages 371-385, July.
    18. Vassilis A. Hajivassiliou & Daniel L. McFadden, 1998. "The Method of Simulated Scores for the Estimation of LDV Models," Econometrica, Econometric Society, vol. 66(4), pages 863-896, July.
    19. Chung, Seungwha (Andy) & Kim, Gyeong Mook, 2003. "Performance effects of partnership between manufacturers and suppliers for new product development: the supplier's standpoint," Research Policy, Elsevier, vol. 32(4), pages 587-603, April.
    20. Bronwyn H. Hall & Albert N. Link & John T. Scott, 2003. "Universities as Research Partners," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 485-491, May.
    21. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-1306, December.
    22. Philippe Aghion & Rachel Griffith & Peter Howitt, 2006. "Vertical Integration and Competition," American Economic Review, American Economic Association, vol. 96(2), pages 97-102, May.
    23. Michael L. Katz, 1986. "An Analysis of Cooperative Research and Development," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 527-543, Winter.
    24. Pierre Dussauge & Bernard Garrette, 1999. "Cooperative Strategy - Competing Successfully through Strategic Alliances," Post-Print hal-00706251, HAL.
    25. Duysters, Geert & Lokshin, Boris, 2007. "Determinants of alliance portfolio complexity and its effect on innovative performance of companies," MERIT Working Papers 2007-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    26. Franco, Chiara & Montresor, Sandro & Vittucci Marzetti, Giuseppe, 2011. "On indirect trade-related R&D spillovers: The "Average Propagation Length" of foreign R&D," Structural Change and Economic Dynamics, Elsevier, vol. 22(3), pages 227-237, September.
    27. Eleonora Di Maria & Roberto Ganau, 2014. "Driving a firmÕs export propensity and export intensity: the role of experience, innovation, and international marketing strategy," "Marco Fanno" Working Papers 0175, Dipartimento di Scienze Economiche "Marco Fanno".
    28. Doran, Justin, 2012. "Are different forms of innovation complements or substitutes?," MPRA Paper 44580, University Library of Munich, Germany.
    29. Dahlander, Linus & Gann, David M., 2010. "How open is innovation?," Research Policy, Elsevier, vol. 39(6), pages 699-709, July.
    30. Claudio Cozza & Antonello Zanfei, 2016. "Firm heterogeneity, absorptive capacity and technical linkages with external parties in Italy," The Journal of Technology Transfer, Springer, vol. 41(4), pages 872-890, August.
    31. Seung Ki Moon & Xiaomeng Chang & Janis Terpenny & Timothy W. Simpson & Soundar R. T. Kumara, 2009. "Towards a Knowledge Support System for Product Family Design," World Scientific Book Chapters, in: Frank T Piller & Mitchell M Tseng (ed.), Handbook of Research in Mass Customization and Personalization (In 2 Volumes), chapter 16, pages 297-318, World Scientific Publishing Co. Pte. Ltd..
    32. Dirk Czarnitzki & Hanna Hottenrott, 2011. "R&D investment and financing constraints of small and medium-sized firms," Small Business Economics, Springer, vol. 36(1), pages 65-83, January.
    33. Michael Song & Cornelia Droge & Sangphet Hanvanich & Roger Calantone, 2005. "Marketing and technology resource complementarity: an analysis of their interaction effect in two environmental contexts," Strategic Management Journal, Wiley Blackwell, vol. 26(3), pages 259-276, March.
    34. Becker, Wolfgang & Dietz, Jurgen, 2004. "R&D cooperation and innovation activities of firms--evidence for the German manufacturing industry," Research Policy, Elsevier, vol. 33(2), pages 209-223, March.
    35. Wang, Kung-Jeng & Lestari, Yuliani Dwi, 2013. "Firm competencies on market entry success: Evidence from a high-tech industry in an emerging market," Journal of Business Research, Elsevier, vol. 66(12), pages 2444-2450.
    36. Gnyawali, Devi R. & Park, Byung-Jin (Robert), 2011. "Co-opetition between giants: Collaboration with competitors for technological innovation," Research Policy, Elsevier, vol. 40(5), pages 650-663, June.
    37. Miotti, Luis & Sachwald, Frederique, 2003. "Co-operative R&D: why and with whom?: An integrated framework of analysis," Research Policy, Elsevier, vol. 32(8), pages 1481-1499, September.
    38. Noseleit, Florian & de Faria, Pedro, 2013. "Complementarities of internal R&D and alliances with different partner types," Journal of Business Research, Elsevier, vol. 66(10), pages 2000-2006.
    39. Haeussler, Carolin & Patzelt, Holger & Zahra, Shaker A., 2012. "Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities," Journal of Business Venturing, Elsevier, vol. 27(2), pages 217-233.
    40. De Bondt, Raymond, 1997. "Spillovers and innovative activities," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 1-28, February.
    41. Riccardo Crescenzi & Luisa Gagliardi & Marco Percoco, 2013. "Social Capital and the Innovative Performance of Italian Provinces," Environment and Planning A, , vol. 45(4), pages 908-929, April.
    42. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    43. Thuc Uyen Nguyen-Thi & Caroline Danièle Mothe, 2010. "The Link Between Non Technological Innovations And Technological Innovation," Post-Print hal-00920069, HAL.
    44. Koski, Heli, 2015. "Commercial success of innovation: the roles of R&D cooperation and firm age," ETLA Working Papers 30, The Research Institute of the Finnish Economy.
    45. Kuo-Feng Huang & Chwo-Ming Yu, 2011. "The effect of competitive and non-competitive R&D collaboration on firm innovation," The Journal of Technology Transfer, Springer, vol. 36(4), pages 383-403, August.
    46. Joaquín Azagra-Caro & Rafael Pardo & Ruth Rama, 2014. "Not searching, but finding: how innovation shapes perceptions about universities and public research organisations," The Journal of Technology Transfer, Springer, vol. 39(3), pages 454-471, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aronica, Martina & Fazio, Giorgio & Piacentino, Davide, 2022. "A micro-founded approach to regional innovation in Italy," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    2. Joaquín M. Azagra-Caro & Laura González-Salmerón & Pedro Marques, 2021. "Fiction lagging behind or non-fiction defending the indefensible? University–industry (et al.) interaction in science fiction," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1889-1916, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Otello Ardovino & Luca Pennacchio & Giuseppe Piroli, 2013. "Cooperazione in ricerca e sviluppo e attivit? innovativa delle imprese: un?analisi empirica della realt? italiana," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2013(109), pages 68-98.
    2. Otello Ardovino & Luca Pennacchio & Giuseppe Piroli, 2014. "Direct and indirect effects of R&D cooperation on the innovation of Italian firms," EERI Research Paper Series EERI RP 2014/03, Economics and Econometrics Research Institute (EERI), Brussels.
    3. René Belderbos & Martin Carree & Boris Lokshin & Juan Fernández Sastre, 2015. "Inter-temporal patterns of R&D collaboration and innovative performance," The Journal of Technology Transfer, Springer, vol. 40(1), pages 123-137, February.
    4. Belderbos, Rene & Carree, Martin & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2004. "Heterogeneity in R&D cooperation strategies," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1237-1263, November.
    5. Dragana Radicic & David Douglas & Geoff Pugh & Ian Jackson, 2019. "Cooperation For Innovation And Its Impact On Technological And Non-Technological Innovations: Empirical Evidence For European Smes In Traditional Manufacturing Industries," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-41, June.
    6. Busom, Isabel & Fernández-Ribas, Andrea, 2008. "The impact of firm participation in R&D programmes on R&D partnerships," Research Policy, Elsevier, vol. 37(2), pages 240-257, March.
    7. Koski, Heli, 2015. "Commercial success of innovation: the roles of R&D cooperation and firm age," ETLA Working Papers 30, The Research Institute of the Finnish Economy.
    8. Czarnitzki, Dirk & Hottenrott, Hanna, 2012. "Collaborative R&D as a strategy to attenuate financing constraints," ZEW Discussion Papers 12-049, ZEW - Leibniz Centre for European Economic Research.
    9. repec:dau:papers:123456789/6963 is not listed on IDEAS
    10. Vitaliy Roud & Valeriya Vlasova, 2016. "Firm-Level Evidence on the Cooperative Innovation Strategies in Russian Manufacturing," HSE Working papers WP BRP 63/STI/2016, National Research University Higher School of Economics.
    11. Santamaría Sánchez, Luis & Surroca Aguilar, Jorge, 2004. "Idoneidad del socio tecnológico : un análisis con datos de panel," DEE - Documentos de Trabajo. Economía de la Empresa. DB db040704, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    12. repec:dau:papers:123456789/5009 is not listed on IDEAS
    13. Carboni, Oliviero A., 2013. "Heterogeneity in R&D collaboration: An empirical investigation," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 48-59.
    14. Fier, Andreas & Aschhoff, Birgit & Löhlein, Heide, 2006. "Detecting Behavioural Additionality: An Empirical Study on the Impact of Public R&D Funding on Firms' Cooperative Behaviour in Germany," ZEW Discussion Papers 06-037, ZEW - Leibniz Centre for European Economic Research.
    15. Bernal, Pilar & Carree, Martin & Lokshin, Boris, 2022. "Knowledge spillovers, R&D partnerships and innovation performance," Technovation, Elsevier, vol. 115(C).
    16. Hyunbae Chun & Sung-Bae Mun, 2012. "Determinants of R&D cooperation in small and medium-sized enterprises," Small Business Economics, Springer, vol. 39(2), pages 419-436, September.
    17. Spyros Arvanitis, 2009. "How do different motives for R&D cooperation affect firm performance?," KOF Working papers 09-233, KOF Swiss Economic Institute, ETH Zurich.
    18. Yannis Caloghirou & Stavros Ioannides & Nicholas S. Vonortas, 2003. "Research Joint Ventures," Journal of Economic Surveys, Wiley Blackwell, vol. 17(4), pages 541-570, September.
    19. Spyros Arvanitis & Areti Gkypali & Kostas Tsekouras, 2014. "Knowledge Base, Exporting Activities, Innovation Openness and Innovation Performance," KOF Working papers 14-361, KOF Swiss Economic Institute, ETH Zurich.
    20. Faria, Pedro & Schmidt, Tobias, 2007. "International cooperation on innovation: empirical evidence for German and Portuguese firms," Discussion Paper Series 1: Economic Studies 2007,30, Deutsche Bundesbank.
    21. Mendi, Pedro & Moner-Colonques, Rafael & Sempere-Monerris, José J., 2020. "Cooperation for innovation and technology licensing: Empirical evidence from Spain," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    22. Lokshin, Boris & Hagedoorn, John & Letterie, Wilko, 2011. "The bumpy road of technology partnerships: Understanding causes and consequences of partnership mal-functioning," Research Policy, Elsevier, vol. 40(2), pages 297-308, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijitmx:v:15:y:2018:i:01:n:s0219877018500037. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijitm/ijitm.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.