R&D Cooperation and Knowledge Spillover Effects for Sustainable Business Innovation in the Chemical Industry

Abstract

This paper investigates the influence of research and development (R&D) cooperation on the creation of spillover effects for sustainable firms in the chemical industry. We explore the evidence for the origin of knowledge spillovers derived from cooperation amongst firms and universities and R&D organizations as well as to test the influence of internal/external financial support on these effects. The results confirm that when firms acquire knowledge from internal sources, this leads to increased innovation and sustainable performance. We have proved that internal expenditure results in increased internal knowledge spillovers. These findings may be specific for Central and Eastern (CEE) transition countries, indicating their efforts to build path-dependent structures based on knowledge institutions and businesses as well as knowledge networks. However, this study also provides a more “global” contribution to the knowledge spillover effect theory. It shows that a firm’s cooperation both with universities and with other firms promotes different types of knowledge spillovers and can affect diverse modes of sustainable activities in innovation.