Collaboration and firm size: some evidence from the UK defence industry

This paper presents evidence on the relationship between collaboration and firm size derived from an empirical study of the UK defence industry. The results indicate that size has a positive impact on collaboration and, in particular, with the propensity to collaborate with overseas firms. However, size has no impact on the propensity to collaborate with UK partners. This lends support to theories which emphasize the resource constraints facing small firms in developing international collaboration. There is a need for a policy debate concerning mechanisms to promote collaboration to assist small firms to realise the benefits of international collaboration.