Abstract
In this paper we seek to check for a number of interactions between firms and the external environment. We aim to contribute to the discussion on the role of the regional environment in a firm's innovation performance. We test the statistical significance of a number of particular interactions between institutions and firm innovation. In particular, we have hypothesized the association between trade and professional institutions, technological centres, and cooperation arrangements and innovation. In contrast with existing studies, we have provided empirical evidence of the impact of external factors on individual firms.