PurposeThis research aims to study the impact that the interaction between internal R&D and R&D cooperation has on the technical efficiency of firms, as well as to analyse whether firms belonging to a group achieve any additional level of technical efficiency.Design/methodology/approachWe employ the stochastic frontier version of a knowledge production function, particularly the inefficiency model, and we combine the stochastic frontier analysis (SFA) and the complementarity approach.FindingsThe interaction between internal R&D and R&D cooperation has a positive and significant impact on technical efficiency when the complementarity test is applied between companies belonging to a group, and there is no interaction when they do not belong to a group.Practical implicationsKnowing this type of information in advance is critical for managers and policymakers, as it allows them to avoid undesirable combinations of innovation strategies or contexts not favourable for their implementation, as well as the formulation of policies leading to an efficient allocation of public resources.Originality/valueTo the best of the authors’ knowledge, this paper contributes an original approach in evaluating the complementarity of internal R&D and R&D cooperation from the perspective of technical efficiency and group membership, combining the SFA and the complementarity approach.
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