Institutional Endowment and Innovation Strategies

Abstract

Firms understand that cooperation is key to sustainable innovation. Knowledge accumulated inside the firm requires external catharsis if the firm is to reinvent itself. Institutional endowment influences those cooperative processes, acting as a barrier or leverage. When building balanced cooperation strategies, the extent to which firms make their contributions counts in the innovation race by using "the wind behind" them, and it will determine how sustainable their performance is. Understanding the impact of institutional endowment on innovation strategies might reduce causal ambiguity and therefore help firms to contextualize their innovation strategies. The aim of this paper is to contribute with a type of cooperative innovation strategy dependent on two institutional factors: culture networking and the legal system.