New challenges in European innovation partnerships. SOEs, POEs and foreign MNEs during crises

Abstract

Cooperation for innovation, not only enhances the innovative and economic performance of companies but also fosters growth and strengthens the resilience of firms in the realm of innovation activities. In this study, we delve into the cooperative activities of Spanish companies with their European counterparts. We employ three logit models using panel data to scrutinize the impact of ownership on innovation cooperation and the determinants of collaboration across different phases of the business cycle, spanning from 2004 to 2016, which we divide into three sub-periods: the pre-crisis (2004–2007), the crisis (2008–2013), and the recovery (2014–2016). State-owned enterprises are the most prone to engage in cooperative innovation with European partners, while unaffiliated domestic firms are the least prone. Foreign subsidiaries outperform unaffiliated domestic firms but not domestic business groups nor state-owned enterprises. Drivers of cooperation for innovation with European partners evolve, with cooperation becoming particularly challenging during times of crisis. The results contain policy and management implications.