The Impact of Cooperation on Business Innovation in Developing Countries: Evidence from Chile in Latin America

Abstract

There is abundant empirical evidence supporting the relationship between cooperation and innovative entrepreneurial activity, but the conversation continues to be limited to the context of developing countries. This study contributes to the academic debate on this topic with an empirical evaluation of the effect of cooperation networks on innovation, using Chile in Latin America as a case study. Furthermore, while previous studies mainly refer to technological innovations in a particular industrial sector, in this paper we will build an innovation measurement system that incorporates both technological and non-technological activities among diverse industrial sectors. Upon applying cross-sectional data from a national survey on innovation in a developing firm from two different years to a zero-inflated negative binomial regression, we found that a business that reports on cooperation conducts more innovative activities per year compared to one that does not. The type of agent that a business cooperates with is also relevant in this context; other businesses, clients, and consultants showed stronger and more stable results than other types of agents. This evidence is relevant as it presents new information about the importance of the type of agent that a business cooperates with in the context of developing countries.

Collaborative innovation, partners, and geographical proximity in the tourism sector in Chile

“…This result can be explained by the low levels of cooperation and collaboration that companies perform with other companies due to a strong focus on competition rather than on collaboration (Bengtsson & Raza-Ullah, 2016), generating effect lock-in (Balland et al, 2022). Also, it can be explained by the differences in collaborative innovation according to the economic sector and territory (Fuentes et al, 2019;Lopes et al, 2021). In Chile, social closeness negatively impacts company-organization innovation cooperation due to reputation, prior knowledge of the actors, and common experiences, probably due to low social capital (Geldes et al, 2015;.…”

“…In general, it is determined that cooperation with business organizations such as suppliers, buyers, consultants, and other competing companies directly favors business innovation processes. Also, it has been observed that business innovation is facilitated with the collaboration of support organizations such as technology centers, universities, public agencies, and trade associations, which are favored (Etzkowitz & Leydesdorff, 2000;Gallaud, 2013;Cantù et al, 2015b;Marasco et al, 2018;Fuentes et al, 2019;Castillo-Vergara & Torres, 2019). Considering the previous antecedents, and the exploratory nature of this study of firms in the tourism sector in Chile, the following hypotheses are proposed (Figure 1…”

“…In general, it is observed that cooperation with firms such as suppliers and buyers generate positive effects on innovation. Also, it is observed that collabora-tion with support institutions such as public agencies, universities, and technology centers facilitates indirect firm innovation through support instruments and programs (Etzkowitz & Leydesdorff, 2000;Gallaud, 2013;Marasco et al, 2018;Fuentes et al, 2019). For example, Castillo-Vergara & Torres (2019) indicate that business cooperation and professional cooperation affect technological innovation.…”

R&D Cooperation and Investments concerning Sustainable Business Innovation: Empirical Evidence from Polish SMEs

“…Another strength of undertaking cooperative activities leads to the optimization of outlays on innovation, as they are distributed among all cooperating entities [47]. According to Fuentes-Solis et al [48], an enterprise that collaborates in the innovation process with other entities organizes more innovative activities annually than an enterprise that does not cooperate. In this context, the type of entities with which the company cooperates is also important-other companies as well as clients and advisors show the strongest and more stable results in this aspect.…”

Second-generation biodiesel in Brazil: an analysis of research on animal fats through social and complex networks

“…Social Network Analysis (SNA) is an approach focused on the study of human relationships and, unlike traditional methods of research centered on attributes, it focuses on connections among individuals and exchange of information resulting from these relationships (Borgatti, Everett & Johnson, 2013;Freeman, 2021;Fuentes-Solís, Soto-Caro & Paredes, 2019;Wasserman & Faust, 1994).…”