International breadth in coopetition and innovation performance: evidence from the Spanish biotechnology industry

Abstract

Collaboration with competitors –coopetition– enables access to valuable knowledge and resources for innovation and is seen as common practice in some knowledge-intensive sectors. Using longitudinal data from the Spanish biotechnology sector (a total of 1605 observations), this study examines the relationship between international breadth of coopetition – the sum of the different international areas in which a firm’s coopetitors are located - and innovation performance. The results show that a firm must collaborate with competitors in more than a single geographical area to begin to experience the positive effect of international breadth on innovation performance. Further, the results vary significantly in the presence of two different contingencies. Under conditions of lack of technological information, international breadth increases in value. When perceived market uncertainty is high, however, optimal results are achieved when international breadth is limited to a single area.