Partnering for productivity: The impact of cooperation on firm performance

Absztrakt (kivonat)

This paper investigates the impact of cooperation with different types of collaboration part- ners on firm performance and productivity in Hungary, an emerging innovator country. The study focuses on how cooperation facilitates the innovation process and provides access to complementary resources. Using a difference-in-differences approach on panel data from the Hungarian Community Innovation Survey (CIS) linked to firm balance sheet data, I present an empirical analysis of the topic. I find that scientific collaboration partners can increase a firm’s TFP growth by 6%-8% after 4 years. In terms of firm performance, both vertical and horizon- tal partners are important. Collaboration with competitors can increase a firm’s value added growth by 5%-6%, while collaboration with both suppliers and customers can increase a firm’s sales growth by 5%-6% after 4 years. The findings suggest that policies enhancing collaborations among innovators and their stakeholders can improve the quality of innovation in the economy.