Cooperation for innovation and its impact on technological and non-technological innovations: empirical evidence for European SMEs in traditional manufacturing industries

Drawing on a sample of small and medium-sized enterprises (SMEs) in traditional manufacturing industries from seven EU regions, this study investigates how cooperation with external organizations affects technological (product and process) innovations and non-technological (organizational and marketing) innovations as well as the commercial success of product and process innovations (i.e. innovative sales). Our empirical strategy takes into account that all four types of innovation are potentially complementary. Empirical results suggest that cooperation increases firms' innovativeness and yields substantial commercial benefits. In particular, increasing the number of cooperation partnerships has a positive impact on all measures of innovation performance. We conclude that a portfolio approach to cooperation enhances innovation performance and that innovation support programs should be demand-led.