Determinants of Innovation Collaboration Selection: A Comparative Analysis of Korea and Germany

Abstract

With the complexity of technology increasing and globalisation becoming more common, the importance of collaboration in innovation implementation has increased in recent years. The literature has investigated collaboration in various ways, but the scope of the research has been fragmented and mainly confined to single- or similar-country contexts. To address this research gap, this paper investigated the different innovation strategy configurations in vertical, horizontal and international collaborations in two innovative countries: Korea and Germany. Empirical analyses using Korean and German Community Innovation Surveys suggest that (1) vertical collaboration is implemented when a firm engages in innovation to optimise existing core competencies, (2) horizontal collaboration with partners outside a value chain can play an important role in identifying new opportunities in a new market, and (3) the fit between innovation strategy and collaboration type can be differently configured across countries. Based on these findings, this paper suggests practical implications for managers in firm.

Keywords: Innovation collaboration, Comparative study, Korea, Germany

JEL Classification: O32