The contrasting effects of active and passive cooperation on Innovation and productivity

Evidence from British local innovation networks

Emanuele Giovannetti, Claudio A. Piga

Research output: Contribution to journalArticle

5 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)102-112
Number of pages11
JournalInternational Journal of Production Economics
Volume187
Early online date24 Feb 2017
DOIs
Publication statusPublished - May 2017
Externally publishedYes

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Innovation
Productivity
Innovation networks
Competitors
Innovation activities
Spillover

Cite this

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title = "The contrasting effects of active and passive cooperation on Innovation and productivity: Evidence from British local innovation networks",
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.",
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AB - 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.

KW - Product innovations

KW - Process innovations

KW - R&D spillovers

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KW - Local innovation networks

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