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Public policy and R&D when research joint ventures are costly

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  • Jon Vilasuso
  • Mark R. Frascatore

Abstract

In this paper we examine the role of policy when forming a R&D joint venture is costly. Contrary to previous studies, we document an active role for public policy, since the interests of firms are not necessarily aligned with societal interests. The nature of policy, however, depends on the joint venture cost. If it is relatively low, then policy may call for subsidizing the joint venture to encourage collaboration. If forming a joint venture is very costly, however, then there are cases where social welfare is improved if policy encourages R&D competition with no joint venture.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 33 (2000)
Issue (Month): 3 (August)
Pages: 818-839

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Handle: RePEc:cje:issued:v:33:y:2000:i:3:p:818-839

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Cited by:
  1. Falvey, Rod & Poyago-Theotoky, Joanna & Teerasuwannajak, Khemarat Talerngsri, 2013. "Coordination costs and research joint ventures," Economic Modelling, Elsevier, vol. 33(C), pages 965-976.
  2. Alberto Marzucchi & Davide Antonioli & Sandro Montresor, 2012. "Research cooperation within and across regional boundaries. Does innovation policy add anything?," JRC-IPTS Working Papers JRC76320, Institute for Prospective and Technological Studies, Joint Research Centre, revised Nov 2012.
  3. Bourreau, Marc & Dogan, PInar, 2010. "Cooperation in product development and process R&D between competitors," International Journal of Industrial Organization, Elsevier, vol. 28(2), pages 176-190, March.
  4. Yasunori Ouchida & Daisaku Goto, 2014. "Environmental Research Joint Ventures and Time-Consistent Emission Tax," Working Papers 2014.35, Fondazione Eni Enrico Mattei.
  5. Neil Buckley & Stuart Mestelman & Mohamed Shehata, 1999. "Subsidizing Public Inputs," Department of Economics Working Papers 1999-11, McMaster University.
  6. Rod Falvey & Joanna Poyago-Theotoky & Khemarat Teerasuwannajak, 2006. "Coordination Costs: A Drawback for Research Joint Ventures?," Discussion Paper Series 2006_3, Department of Economics, Loughborough University, revised Feb 2006.

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