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Understanding co-operative R&D activity: evidence from four European countries

Author

Listed:
  • Laura Abramovsky

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Elisabeth Kremp

    (Institute for Fiscal Studies)

  • Alberto López

    (Institute for Fiscal Studies)

  • Tobias Schmidt

    (Institute for Fiscal Studies)

  • Helen Simpson

    (Institute for Fiscal Studies and CMPO, Bristol)

Abstract

This paper investigates co-operative research activity by firms using data from the 3rd Community Innovation Survey for four countries, France, Germany, Spain and the UK. We build on the Cassiman and Veugelers (CV) (2002) study of Belgian manufacturing firms, by incorporating information on the service sector, and considering the role of public support in affecting firms' decisions to co-operate. Our results support those in CV, in that we find a positive relationship between the likelihood of undertaking co-operative R&D and both incoming knowledge spillovers and the extent to which firms find strategic methods important in appropriating the returns to innovative activity. We find that public support is positively related to the probability of undertaking co-operative agreements particularly with regard to the likelihood of co-operation with the research base. We find some evidence, in particular for Spain, that firms carry out co-operative R&D to overcome excessive perceived risks and financial constraints.

Suggested Citation

  • Laura Abramovsky & Elisabeth Kremp & Alberto López & Tobias Schmidt & Helen Simpson, 2005. "Understanding co-operative R&D activity: evidence from four European countries," IFS Working Papers W05/23, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:05/23
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    References listed on IDEAS

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    1. 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.
    2. Lopez, Alberto, 2008. "Determinants of R&D cooperation: Evidence from Spanish manufacturing firms," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 113-136, January.
    3. Bruno Cassiman & Reinhilde Veugelers, 1998. "R&D cooperation and spillovers: Some empirical evidence," Economics Working Papers 328, Department of Economics and Business, Universitat Pompeu Fabra.
    4. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    5. Ballesteros, Juan Acosta & Rico, Aurelia Modrego, 2001. "Public financing of cooperative R&D projects in Spain: the Concerted Projects under the National R&D Plan," Research Policy, Elsevier, vol. 30(4), pages 625-641, April.
    6. 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.
    7. Patrick Greenlee & Bruno Cassiman, 1999. "Product market objectives and the formation of research joint ventures," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(3), pages 115-130.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. 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.
    2. Martin Srholec, 2011. "Understanding the heterogeneity of cooperation on innovation: Firm-level evidence from Europe," Working Papers on Innovation Studies 20111201, Centre for Technology, Innovation and Culture, University of Oslo.
    3. Faria, Pedro & Schmidt, Tobias, 2007. "International Cooperation on Innovation: Empirical Evidence for German and Portuguese Firms," ZEW Discussion Papers 07-060, ZEW - Leibniz Centre for European Economic Research.
    4. Martin Srholec, 2015. "Understanding the diversity of cooperation on innovation across countries: multilevel evidence from Europe," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(1-2), pages 159-182, March.
    5. Spyros Arvanitis & Thomas Bolli, 2009. "A comparison of firm-level innovation cooperation in five European countries," KOF Working papers 09-232, KOF Swiss Economic Institute, ETH Zurich.
    6. 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.
    7. Ascension Barajas & Elena Huergo & Lourdes Moreno, 2012. "Measuring the economic impact of research joint ventures supported by the EU Framework Programme," The Journal of Technology Transfer, Springer, vol. 37(6), pages 917-942, December.
    8. 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.
    9. Zouaghi, Ferdaous & Sánchez, Mercedes & Martínez, Marian García, 2018. "Did the global financial crisis impact firms' innovation performance? The role of internal and external knowledge capabilities in high and low tech industries," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 92-104.
    10. Manuela Gussoni, 2009. "The determinants of inter-firms R&D cooperation and partner selection. A literature overview," Discussion Papers 2009/86, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    11. Schmiedeberg, Claudia, 2008. "Complementarities of innovation activities: An empirical analysis of the German manufacturing sector," Research Policy, Elsevier, vol. 37(9), pages 1492-1503, October.
    12. Schmidt, Tobias & Rammer, Christian, 2007. "Non-technological and Technological Innovation: Strange Bedfellows?," ZEW Discussion Papers 07-052, ZEW - Leibniz Centre for European Economic Research.
    13. 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.
    14. Fernandes, S. & Cesário, M. & Barata, J.M., 2017. "Ways to open innovation: Main agents and sources in the Portuguese case," Technology in Society, Elsevier, vol. 51(C), pages 153-162.
    15. de Faria, Pedro & Lima, Francisco & Santos, Rui, 2010. "Cooperation in innovation activities: The importance of partners," Research Policy, Elsevier, vol. 39(8), pages 1082-1092, October.
    16. Fontana, Roberto & Geuna, Aldo, 2009. "The Nature of Collaborative Patenting Activities," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200910, University of Turin.
    17. Perkmann, Markus & King, Zella & Pavelin, Stephen, 2011. "Engaging excellence? Effects of faculty quality on university engagement with industry," Research Policy, Elsevier, vol. 40(4), pages 539-552, May.
    18. Garcia Martinez, Marian & Zouaghi, Ferdaous & Garcia Marco, Teresa & Robinson, Catherine, 2019. "What drives business failure? Exploring the role of internal and external knowledge capabilities during the global financial crisis," Journal of Business Research, Elsevier, vol. 98(C), pages 441-449.
    19. Schmidt, Tobias, 2007. "Motives for Innovation Co-operation? Evidence from the Canadian Survey of Innovation," ZEW Discussion Papers 07-018, ZEW - Leibniz Centre for European Economic Research.
    20. Edwards-Schachter, Mónica & Anlló, Guillermo & Castro-Martínez, Elena & Sánchez-Barrioluengo, Mabel & Fernández De Lucio, Ignacio, 2012. "Motives for inter-firm cooperation on R&D and innovation: empirical evidence from Argentine and Spain," INGENIO (CSIC-UPV) Working Paper Series 201204, INGENIO (CSIC-UPV), revised 04 Jun 2012.
    21. Spyros Arvanitis & Thomas Bolli, 2013. "A Comparison of National and International Innovation Cooperation in Five European Countries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(3), pages 163-191, November.
    22. Segarra-Blasco, Agusti­ & Arauzo-Carod, Josep-Maria, 2008. "Sources of innovation and industry-university interaction: Evidence from Spanish firms," Research Policy, Elsevier, vol. 37(8), pages 1283-1295, September.

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    More about this item

    Keywords

    R&D co-operation; spillovers; joint ventures; CIS;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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