Drivers of Cooperation in Innovation by Energy Firms in Spain

Abstract

Innovation by energy firms is critical for facing the energy transition and the challenge ofclimate change. Innovation is a complex process, and firms increasingly resort to coop-eration with other companies and institutions in their innovation activities. In the energysector, suppliers have always played a very important role in the technological advancesof this industry. The objective of this paper is to analyse the determinants for engage-ment in cooperation in innovation by energy firms. In this analysis, we distinguish by thetype of partnership, whether suppliers or research organisations (universities and researchcentres). We consider the factors proposed by the industrial organisation literature and thereasons given for firms to innovate, to explain decisions to cooperate. For the empiricalanalysis, we use a sample of energy firms from the Spanish Technological Innovation Pan-el (PITEC) for the period 2004–2016. To carry out the estimations we use binary modelsfor panel data. In order to correct for endogeneity of the relevant variables, some of whichare binary, we have relied on the panel data version of the special regressor method. Ourresults show the important role of incoming spillovers and innovation objectives relatedto reducing the environmental impact and meeting environmental regulatory requirementsto explain cooperation in innovation by energy firms