The aim of the paper is to investigate in a simultaneous equation framework the role of R&D cooperation in the innovation process under two specific aspects. First, the analysis is concentrated on the impact of R&D cooperation-in line with other factors-on firm's innovation input and output. Second, it will be analyzed how the number of cooperation partners affects the development of new products. Starting with the discussion of theoretically expected effects of successfully R&D cooperation on the innovation activities of firms, the importance of inter-organizational arrangements in R&D is empirically investigated for firms in the German manufacturing industry. The estimation results can be summarized as follows: In the German manufacturing industry, R&D cooperations are used complementary in the innovation process, enhancing the innovation input and output of firms measured by the intensity of inhouse R&D respectively the realization of product innovations. On the input side, the intensity of inhouse R&D also stimulates the probability and the number of R&D cooperations with other firms and institutions.

The importance of digitalization continues to grow, with companies from all sectors and of various sizes subject to this influence. To remain competitive in the future, companies must recognize and overcome the opportunities and challenges of digitalization in the long term. To do this, companies can develop an entire digitization strategy that affects all areas of the business, enabling them to achieve a holistic digital transformation and ensure their survival in the digital age. Based on a qualitative–empirical research design, this study examines whether small and medium-sized enterprises (SMEs) and large enterprises (LSEs) have such a strategy, and how it is structured. In particular, it addresses the use of new technology, changes in value added, structural changes and the financing of digitalization. At the same time, there is an examination of any similarities and differences among the different company sizes.

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Abstract

The strategic role of R&D-spillovers within vertical corporate networks (intra-group R&D-spillovers) is neglected in the innovation theory of Industrial Organization. In a two-industry model we formalize the effects of R&D-competition between two vertical corporate networks on supplier-market structures, technological opportunities and on the introduction time of new products. It can be shown that lower transaction costs of organizing vertical corporate networks increase the size of networks and reduce the concentration on supplier-markets. This raises the level of supplier's R&D-activities and lowers the time of development. Additionally, manufacturers have incentives to strategically generate R&D-spillovers within their networks. which improve the technological opportunities of suppliers and increase manufacturers probabilities to win the R&D-competition. This kind of R&D-spillovers can explain the often observed differences of firms' technological opportunities within a given supplier-market.R&D-Competition, Strategic R&D-Spillovers, Vertical Corporate Networks, Market Structure, Technological Opportunities JEL Classification: D23, L13,O31,