Cooperation toward Environmental Innovation: an Empirical Investigation

This paper explores the relationship between firms’ cooperation and their propensity toward environmental innovation. Previous literature has emphasized the peculiarities of such innovations based on their drivers, their positive spill-overs and the importance of regulation to trigger them. This paper contributes to the literature by focusing on the importance of cooperation and of vertical, horizontal and lateral cooperative agreements on environmental innovation propensity. I test these hypotheses through a large scale dataset, the Community Innovation Survey for Spanish firms (PITEC), through the use of estimation techniques that allow to control for possible selection bias. The econometric estimations suggest that environmental innovative firms cooperate on innovation to an higher extent than other innovative firms. Furthermore, cooperation with suppliers, KIBS and universities is more relevant than for other innovative firms, whereas cooperation with clients does not seem to be differentially important.