Abstract
Collaborating with customers is widely advocated as crucial for firms to improve their innovative performance. However, previous empirical research has found mixed results for the impact of collaborations with customers on innovative performance. We consider that these ambiguous results may be due to omitted interaction effects between investing in R&D, in marketing, and in collaborative arrangements with customers. Drawing on a panel dataset of over 2,000 manufacturing firms, we extend this line of research by distinguishing between the introduction of innovations and innovation performance measured as the share of turnover due to innovations. Furthermore, we distinguish between radical and incremental innovators. We find that overall investing in R&D and cooperating with customers increase the likelihood of introducing innovations, but not the innovative sales. Marketing investments have the opposite effect. Cooperating with clients drives the introduction of innovations when R&D investments and marketi...
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