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This paper explores the relationship between firms' cooperation and their propensity toward environmental innovation. Previous literature has emphasized the peculiarities of such innovations based on their drivers, their positive spill-overs and the importance of regulation to trigger them. This paper contributes to the literature by focusing on the importance of cooperation and of vertical, horizontal and lateral cooperative agreements on environmental innovation propensity. The author tests these hypotheses through a large scale dataset, the Community Innovation Survey for Spanish firms (PITEC), through the use of estimation techniques that allow controlling for possible selection bias.
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