Abstract:

The aim of the paper is to analyze factors that favor competitiveness in small and micro firms. More specifically, our interest lies in competitiveness gained through networking with universities and research centers, what we call science‐based cooperation.

Cooperation, being it formal or informal, is strongly linked to knowledge interaction and, therefore, linked to knowledge creation. Available evidence shows that cooperation with universities and research centers improves firms’ competitiveness. This is due to the existence of important and pervasive effects of university research on industry R&D innovation. However, universities and research centers are not perfect partners, because of strong cultural differences with firms. Consequently, firms need a minimum level of absorptive capacity (Cohen and Levinthal, 1989/90) to manage –and to be interested in– science‐based cooperation.