ABSTRACT
This chapter examines how important, the evidence from the 3rd UK Community Innovation Survey (CIS3) suggests such co-operation to be, to the innovative performance of firms. It also provides indicators of links between the university sector and industry and of knowledge transfer. Co-operation and networking between firms is partly determined by the firm's absorptive capacity which includes its track record on innovation and its ability to innovate. This suggests that any analysis of the determinants of innovation should take into account the joint determination of innovation and co-operation. The chapter provides evidence on the extent of university-firm collaboration and other co-operative arrangements between firms, on the impact that such collaboration and co-operation has on the propensity of firms to innovate, on the extent to which such innovation is new to the market and on the impact of such innovation in terms of the proportion of the firms turnover accounted for by the resulting new and novel products.
