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The contrasting effects of active and passive cooperation on innovation and productivity: Evidence from British local innovation networks

Year: 2017

Type: article

Abstract: This paper studies the contrasting effects on innovations and productivity arising from active cooperation in innovation activities among competitors and from passive cooperation induced by these activities’ spillovers. A three-stage productivity function is estimated showing that firms’ innovations are supported by their active cooperation within their local innovation network of suppliers and customers and by passive cooperation through sectors’ spillovers. Contrary to this, active cooperation in innovation activities among competitors reduces their innovation rates and, indirectly, productivity. Hence, innovation policies and strategies aimed at restraining active cooperation among competitors, while encouraging it within a firm's local innovation network, may contribute to the system-wide introduction of process and product innovations and ultimately productivity.

Source: International Journal of Production Economics

DOI: 10.1016/j.ijpe.2017.02.013

Authors: Emanuele Giovannetti, Claudio A. Piga

Institutions: Anglia Ruskin University, Keele University

Language: English

Topic: Business Strategy and Innovation

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $4,420