The Determinants of Firms’ Distant Collaboration. Evidence from Argentina 1998-2001

ARZA, VALERIA & LÓPEZ, ANDRÉS

Buenos Aires

Workshop; Innovación y TIC: Alcance y limitaciones de los microdatos para la elaboración de políticas públicas en América Latina y el Caribe; 2009

IDES, Instituto de Desarrollo Económico y Social

Firms’ cooperation is a key factor for technological upgrading. In the present era of globalization, international cooperation has become more relevant than in the past, but it has not deserved as much attention in the literature. In this paper we explore the determinants of the probability of cooperating with partners located at different distances in Argentina. Our hypothesis is that international cooperation requires stronger technological capabilities and firms’ openness. Our findings largely confirm the hypotheses. Firstly, foreign firms or those that trade intensively are more likely to cooperate abroad. Secondly, skilled labour intensive firms and firms that allocate more resources to innovation activities show higher probability of forming international partnerships.