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R&D Internationalization, R&D Collaboration and Public Knowledge Institutions in Small Economies Evidence from Finland and the Netherlands

Cees van Beers, Pii Berghäll () and Tom Poot

No 07-12, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: This paper investigates innovating firms’ determinants of R&D collaboration with domestic universities and public knowledge institutes in Finland and the Netherlands. Three questions – relevant for innovation policies - constitute the central part of this paper. First, are innovating foreign firms less or more involved in R&D co-operation with domestic public knowledge institutions than innovating domestic firms? Second, do innovating firms that are open to their external knowledge environment have a higher probability to co-operate with public partners than firms that are not or less open? Third, are public knowledge institutions in Finland and the Netherlands attractive R&D partners to innovative firms? Based on data from Community Innovation Surveys we find that foreign firms in the Netherlands are less likely to co-operate with domestic public knowledge institutions than domestic firms, while in Finland no significant difference can be detected. With regard to the second question our findings show that openness of innovating firms is an important determinant of R&D collaboration in both countries. Finally, the empirical results show that knowledge of public partners is considered useful by innovating firms to transform own ideas into concrete innovations in Finland, but not in the Netherlands. However, the type of knowledge – fundamental or applied - is important for R&D collaboration with Dutch public partners, but not for co-operating with Finnish public partners. This raises the issue whether Finnish innovation policies with a strong focus on R&D co-operation provide incentives for domestic public partners to put more emphasis on applied research.

Keywords: Multinational enterprises; innovation; R&D collaboration; public knowledge institutions; national innovation systems (search for similar items in EconPapers)
JEL-codes: O32 O38 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-cse, nep-eec, nep-ino, nep-ipr, nep-pr~, nep-knm and nep-mic
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