Regional Specialization, Competitive Pressure, and Cooperation: The Cocktail for Innovation

The main aim of this paper is to analyze the effect of industrial agglomeration on the degree of interorganizational cooperation and the innovative performance of firms of the electricity supply sector in Spain. For this purpose, the agglomeration coefficient in each of the 50 provinces of Spain is calculated, based on secondary data from SABI database. Subsequently, primary data are obtained from a sample of 197 companies through a structured questionnaire. In this case, the PLS-SEM technique is used. The results show that there is a positive and significant relationship between the variables analyzed. It is concluded that industrial agglomeration and cooperation are relevant external factors that boost the innovative performance of firms and that business associations foster interorganizational cooperation.