DETERMINANTS OF PROPENSITY VS. INTENSITY OF INNOVATION CO-OPERATION FOR SMEs

Abstract

For small and medium-sized enterprises (SMEs), innovation co-operation represents a promising avenue to get around limitations and increase their innovation capacity. But under which conditions are firms more susceptible to engage in such ventures? The purpose of this research paper is to further our understanding of the factors contributing to innovation co-operation for manufacturing SMEs from the firm’s perspective. Following an online and telephone survey with SME managers ([Formula: see text]), we studied the presence or absence of innovation co-operation. We subsequently investigated the intensity of innovation co-operation with market partners (clients, competitors, consultants, and suppliers) and research partners (laboratories, post-secondary education institutions, technology transfer centers, and universities), addressing gaps in a literature dominated by binary analysis. Our empirical analyses suggest that innovation co-operation is promoted by several key determinants. However, it highlights there are many important differences in the determinants of propensity vs. intensity of innovation co-operation.