R&D Cooperation Determinants, Evidence from Chilean Firms

In this paper we study the determinants of R&D cooperation among innovative firms using data from the Chilean Innovation Survey. We follow the empirical model developed by Cassiman and Veugelers (2002) in which cooperation is allowed to be a function of the technology of the information flows. From our main results we find that incoming spillovers, cost-risk sharing and legal protection affect positively and significantly the probability of cooperating among Chilean firms, while lack of information and firm size have a negative impact on the same variable. In our empirical approach information flows seem to have a larger impact over cooperation with universities and consulting agents. Endogeneity problems present in the model have been properly addressed using a two-stage conditional maximum likelihood test (2SCML) due to Rivers and Vuong (1988) and using an instrumental variable for the first stage estimates of incoming spillovers. th