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

Giovannetti, Emanuele and Piga, Claudio A. (2017) The contrasting effects of active and passive cooperation on innovation and productivity: Evidence from British local innovation networks. International Journal of Production Economics, 187. pp. 102-112. ISSN 0925-5273

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Official URL: https://doi.org/10.1016/j.ijpe.2017.02.013

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.

Item Type: Journal Article
Additional Information: Highlights • Active cooperation within a local innovation network supports firms’ innovations. • Passive cooperation through sectors’ spillovers facilitates firms’ innovations. • Active cooperation among competitors reduces innovation rates and productivity. • Innovation policies should aim to restrain active cooperation among competitors. • Innovation policies need encouraging cooperation within local innovation networks.
Keywords: Product innovations, Process innovations, R&D spillovers, Cooperation, Local innovation networks, Productivity
Faculty: ARCHIVED Lord Ashcroft International Business School (until September 2018)
Depositing User: Professor Emanuele Giovannetti
Date Deposited: 11 Apr 2017 08:01
Last Modified: 09 Sep 2021 18:58
URI: https://arro.anglia.ac.uk/id/eprint/701668

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