The choice of suitable cooperation partners for product innovation: Differences between new ventures and established companies

This article examines the effect of different types of cooperation partners on product innovation in new ventures and in established companies. We argue that the effectiveness of interorganizational cooperation depends on how the resources or capabilities the partners provide match the different characteristics of new ventures and established companies. Specifically, we argue that new ventures cooperate under a cost-economizing and risk-sharing logic; consequently, other new ventures, small firms, universities/research centers and financial institutions are suitable partners. Conversely, large established companies and public administrations are better partners for established companies because they are more motivated to enter into innovation partnerships based on a strategic rationale. We use data from 2473 firms operating in intensive innovation sectors in cluster-like environments in 32 European countries. By using different proxies for product innovation, our results generally confirm our arguments. These findings yield relevant contributions to the study of innovation, new ventures and interorganizational cooperation and provide salient implications for practitioners.