Intercooperation and open innovation: Unleashing cooperative firms’ innovation potential

Abstract This research examines how interorganizational cooperation impacts the innovation performance of cooperative firms. Existing literature asserts that there are limitations in the innovation capabilities of cooperatives. This study seeks to challenge that assumption and explore whether the nature of such firms enhances their cooperation with various stakeholders, enabling them to obtain better innovation outcomes. Based on data from 718 manufacturing establishments in the Basque Country (Spain), 57 of them cooperatives, regression analyses show that the cooperative nature of firms interacts positively and significantly with cooperation with universities and research centres. Such open innovation practices enable cooperatives to obtain competitive advantages in new‐to‐firm innovations and competitive parity in new‐to‐market innovations. Moreover, our findings highlight that cooperative firms invest significantly more in external R&D activities and cooperate more to innovate with more diverse stakeholders. These results underline the importance of intercooperation and open innovation policies for cooperatives and highlight the advantages of strengthening networks between various institutions to foster innovation performance.