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The objective of this paper is to analyse the effects of international R&D cooperation on firms’ economic performance. Our empirical analysis, based on Spanish firms’ participation in the Framework Programme (FP) between 1995 and 2005, has confirmed that: (1) cooperation within the FP has a positive impact on the technological capacity of firms, captured through intangible fixed assets and (2) the technological capacity of firms is positively related to their economic performance, measured by labour productivity.

Measuring the Impact of International R&D Cooperation: The Case of Spanish Firms Participating in the EU Framework Programme