The paper aims to show how policy makers can stimulate firms' cooperation with research organisations in innovation. We …

. Innovation cooperation is recognised as one of its antecedents, along with R&D, but with different possible outcomes, depending … on innovation. The empirical application, carried out on about 10,500 firms located in 3 EU countries (i.e. Germany … firm's AC providing it occurs within the national boundaries. The transformation of AC into actual innovation is favoured …

that the sunk costs of innovation are lower when collaborating with a research partner, and that a firm's probability of … investing in R&D or innovation increases with the level of productivity, only when collaborating in R&D and innovation. We also … find that the sunk costs of innovation are 1.5 to 3 times lower than the sunk costs of R&D. Additionally, it can be seen …