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Cooperative R&D and strategic trade policy

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  • Julie DeCourcy

Abstract

In this paper three different cooperative R&D arrangements in a strategic trade policy model are examined. A policy game between two governments is analysed, where each government chooses a particular cooperative R&D policy in order to maximize national welfare. Allowing cooperation in R&D is also compared with the use of R&D subsidies. It is jointly optimal for both governments to allow their firms to participate in the same type of cooperative R&D, and allowing cooperation in R&D can be superior to the use of R&D subsidies.

Suggested Citation

  • Julie DeCourcy, 2005. "Cooperative R&D and strategic trade policy," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 546-573, May.
    • Handle: RePEc:cje:issued:v:38:y:2005:i:2:p:546-573
    DOI: 10.1111/j.0008-4085.2005.00292.x
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    Cited by:

    1. Arghya Ghosh & Jonathan Lim, 2013. "Cooperative and non-cooperative R&D and trade costs," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(6), pages 942-958, September.
    2. Rod Falvey & Khemarat Talerngsri Teerasuwannajak, 2016. "Competitive and Harmonized R&D Policies for International R&D Alliances involving Asymmetric Firms," Review of International Economics, Wiley Blackwell, vol. 24(2), pages 302-329, May.
    3. Ya-Chin Wang, 2016. "R&D Policy Involving Consumer-Friendly Strategy: Cooperative and Non-Cooperative R&D," Journal of Industry, Competition and Trade, Springer, vol. 16(2), pages 257-272, June.
    4. Zhou, Haiwen, 2007. "International R&D Tournaments and Industrial Policy," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 22, pages 320-338.
    5. Tsuyoshi Toshimitsu, 2014. "Strategic Product R&D Investment Policy under International Rivalry in the Presence of Demand Spillover Effects," International Economic Journal, Taylor & Francis Journals, vol. 28(2), pages 293-309, June.
    6. Richard Gretz & Jannett Highfill & Robert Scott, 2012. "R&D subsidy games: a cost sharing approach vs. reward for performance," The Journal of Technology Transfer, Springer, vol. 37(4), pages 385-403, August.
    7. Anita Michalsen, 2012. "R&D policy in a vertically related industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(8), pages 737-751, November.
    8. Jannett Highfill & Michael McAsey, 2010. "Firm Metrics with Continuous R&D, Quality Improvement, and Cournot Quantities," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(3), pages 243-256, August.
    9. Jannett Highfill & Michael McAsey, 2018. "Product Reliability, R&D, and Manufacturing Cost Shocks," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(1), pages 27-42, March.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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