The Role of R&D Cooperation in Firm Innovation

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.