This paper examines the relationship between R&D spillovers and R&D cooperation, providing empirical evidence on how firms manage these flows. The authors find that firms that value incoming spillovers more and can better protect outgoing spillovers are more likely to engage in R&D cooperation. Higher levels of incoming spillovers and lower levels of outgoing spillovers increase the probability of cooperation. Cooperating firms have higher incoming spillovers and better protection against outgoing spillovers, indicating that cooperation can enhance information flows and reduce free-rider problems. The study also distinguishes between different types of cooperative partners, finding that while managing outgoing spillovers is less critical with non-commercial research partners, incoming spillovers are more critical in these partnerships. The results suggest that firms actively manage information flows to maximize the benefits of cooperation while minimizing risks.This paper examines the relationship between R&D spillovers and R&D cooperation, providing empirical evidence on how firms manage these flows. The authors find that firms that value incoming spillovers more and can better protect outgoing spillovers are more likely to engage in R&D cooperation. Higher levels of incoming spillovers and lower levels of outgoing spillovers increase the probability of cooperation. Cooperating firms have higher incoming spillovers and better protection against outgoing spillovers, indicating that cooperation can enhance information flows and reduce free-rider problems. The study also distinguishes between different types of cooperative partners, finding that while managing outgoing spillovers is less critical with non-commercial research partners, incoming spillovers are more critical in these partnerships. The results suggest that firms actively manage information flows to maximize the benefits of cooperation while minimizing risks.