Mapping the patterns of cooperative arrangements for innovation

This study examines the drivers behind firms' decisions to engage in cooperative arrangements for innovation. It explores collaboration between firms and different external partners, identifying the attributes that increase the likelihood of participation in innovation networks. Key determinants include firms' absorptive capacity and the need to share costs and risks. The analysis also considers the type of innovation and firm characteristics. The study reveals that firms encountering difficulties in accessing external knowledge often collaborate, particularly with consultants, to access specialized expertise crucial for innovation. Additionally, financially constrained firms collaborate with suppliers and academic institutions to manage costs and access public funds, highlighting cooperation's role in cost-sharing and obtaining external financial resources. Moreover, market uncertainties drive collaboration with universities and customers to gain insights and mitigate risks, while intense competition prompts cooperation with competitors, underscoring cooperation's strategic importance in addressing market challenges and leveraging partner expertise. Regarding innovation type, firms introducing ‘new to the market’ innovations prefer collaboration with customers, stressing the importance of aligning partner selection with innovation objectives. Our findings contribute to theoretical understanding by clarifying the complex interplay of motivations and patterns underlying cooperative arrangements for innovation across diverse partner types, firm characteristics and regional contexts within Portugal.