Success and failure of firms' innovation co-operations: The role of intermediaries and reciprocity

There is manifold literature dealing with co-operative activities of firms. However, no empirical study seems to have investigated the factors leading to malfunctions in co-operation projects in terms of a low likelihood of co-operation, low rate of success, and failed co-operation. Our paper attempts to fill this gap by investigating the possible presence of two problems in co-operation: the lack of intermediation and of reciprocity. Based on data gathered for firms in two German regions and one French region, we find that the success of co-operation projects depends on the perceived importance, rather than on the perceived quality, of intermediate actors. Hence, the major problem for intermediating suitable partners is more related to communication than it is a programmatic issue. Trust and reciprocity in co-operation between firms is found to be relevant ex-post in the sense of being a main determinant of failed co-operation projects.