ABSTRACT

Who Co-operates for Innovation within the Supply-chain, and Why?
An Analysis of the United Kingdom's Innovation Survey

CRIC Discussion Paper No. 35

Dr Bruce Tether

In recent years there has been growing interest in co-operative arrangements for innovation, with some commentators arguing innovation is no longer the province of individual firms, but depends increasingly on collective action. This paper examines the response to the UK's version of the second European Community Innovation Survey to investigate the pattern of co-operations between innovating firms and their suppliers and customers. The analysis shows the relationship between innovation and co-operation is not so straightforward. From a subjective perspective, it is clear that most firms, and especially low technology service firms, still 'go it alone' for innovation; that is, they develop their innovations without (formal) co-operative arrangements with other firms. However, firms that are attempting to introduce higher level innovations, that is, innovations that are 'new to the market' and not just 'new to the firm', are much more likely to have co-operative arrangements for innovation (with their suppliers and/or customers). Consequently, if an objective perspective is taken, particularly one that weights innovations by their significance, then a large proportion of innovations are developed through co-operative arrangements. In summary, therefore, the extent and importance of co-operative activity for the development of innovations depends on both the type of firms being considered and what is meant by innovation. Consequently care should be taken when making generalised statements about the extent and significance of co-operative arrangements for innovation.

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