COLLABORATION AND INNOVATION MODELS IN INFORMATION AND COMMUNICATION CREATIVE INDUSTRIES – THE CASE OF GERMANY

Abstract

In rapidly changing environment of global knowledge economy, innovations play an important role in the process ofgaining competitive advantage. Specifically, information andcommunication creative industries are dependent on constanttechnological breakthroughs, new sources of knowledge andhigh innovativeness. Moreover, new knowledge and innovationoutputs of these industries subsequently affect products andprocesses of other businesses as well as innovation activitieswithin different industries. Knowledge acquisition, utilizationand dissemination therefore represent important processes thatsignificantly influence the firms´ innovation activities. It wasproven that cooperation is an important determinant that helpsto spread the existing knowledge and to create new knowledgethrough knowledge spillover effects. The paper deals withthe determinants of cooperation and innovation to examinenumerous effects on both activities in German information andcommunication creative industries. We also test the role of thedeterminants of innovation performance and their influenceon the economic effect of innovation activities in terms of the percentage of innovative products in total turnover. Forour analyses, we are using data from Community InnovationSurvey 2008-2010. We empirically show that firms from Germaninformation and communication creative industries can createinnovations through the collaboration and confirm that bothinternal and external communication significantly contribute tothe creation of innovation. Moreover, we confirm the influence ofinternal expenditures on R&D and observe significant influenceof external expenditures on R&D. In conclusion, we also providesome practical implications for policy makers