This paper investigates the impact of cooperation with different types of collaboration partners on firm productivity in Hungary. The study focuses on the extra productivity gain that collaboration in the innovation activity provides to firms besides innovation. I analyze the panel data of the Hungarian Community Innovation Survey linked to firm balance sheet data using a difference-in-differences approach. The findings show that, four years after the introduction of innovation the labor productivity growth of the firm increase by 2.5%, while the total factor productivity growth increase by 4.3%. If the firm cooperates vertically with its suppliers or customers in the innovation activity, it adds an extra 3.3% increase to labor productivity growth and 2.9% increase to total factor productivity growth. The results suggest that not only firms close to the frontier can benefit from cooperation but firms innovating through adaptation can also benefit from collaboration.