Innovation co-operations in East and West Germany: Surprising differences
This paper investigates the cooperation behavior of East German enterprises in the field of joint innovation projects. The question to be answered is whether and in how far cooperating enterprises are characterized by a stronger innovation activity and higher productivity compared to non-cooperating firms. The empirical study is based on a representative innovation survey, the Mannheim Innovation Panel (MIP). It shows - against all expectations - that East German firms are more often involved in innovation cooperation than West Germany firms. Differences with respect to the cooperation partners reflect the given structural differences between East and West Germany. Both in East and West Germany cooperating enterprises are more innovative than non-cooperating enterprises, but a productivity advantage of cooperating firms appears only in West Germany. In East Germany, non-cooperating enterprises show a slightly higher productivity than cooperating firms. Reasons for these surprising results are to be discussed in this paper.