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R&D cooperation with asymmetric spillovers

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  • Gamal Atallah

Abstract

This paper analyses R&D cooperation with asymmetric spillovers. It is shown that the change in R&D by a firm following cooperation is proportional to the gap between the spillover rate transmitted by that firm and a critical level of spillovers. In consequence, cooperation increases total R&D investments when the average of firms' spillover rates is sufficiently high. Whereas with symmetric spillovers cooperation is always beneficial to firms, with asymmetric spillovers only a very limited range of spillovers makes cooperation beneficial to both firms. Asymmetries also create a potential conflict between maximizing total welfare and maximizing effective cost reduction.

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Bibliographic Info

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

Volume (Year): 38 (2005)
Issue (Month): 3 (August)
Pages: 919-936

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Handle: RePEc:cje:issued:v:38:y:2005:i:3:p:919-936

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Cited by:
  1. Eren Inci, 2009. "R&D tax incentives: a reappraisal," International Tax and Public Finance, Springer, vol. 16(6), pages 797-821, December.
  2. Ki H. Kang & Jina Kang, 2009. "Does Partner Type Matter in R&D Collaboration for Product Innovation?," TEMEP Discussion Papers 200906, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2009.
  3. Gamal Atallah, 2005. "Partner Selection in R&D Cooperation," CIRANO Working Papers 2005s-24, CIRANO.
  4. Yasunori Ouchida & Daisaku Goto, 2012. "What is the socially desirable formation of environmental R&D?," IDEC DP2 Series 2-6, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
  5. repec:ebl:ecbull:v:12:y:2005:i:18:p:1-11 is not listed on IDEAS
  6. Marco Marini & Maria Luisa Petit & Roberta Sestini, 2012. "Strategic Timing in R&D Agreements," DIAG Technical Reports 2012-07, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
  7. Yasunori Ouchida & Daisaku Goto, 2014. "Environmental Research Joint Ventures and Time-Consistent Emission Tax," Working Papers 2014.35, Fondazione Eni Enrico Mattei.
  8. Gamal Atallah, 2005. "Research Joint Ventures Cartelization with Asymmetric R&D Spillovers," Economics Bulletin, AccessEcon, vol. 12(18), pages 1-11.
  9. Marek Jemala, 2009. "Strategic Business Alliances: Qualitative Analysis of Specific Factors of Business Clusters," Acta Oeconomica Pragensia, University of Economics, Prague, vol. 2009(4), pages 19-33.
  10. Dirk Czarnitzki & Kornelius Kraft, 2012. "Spillovers of innovation activities and their profitability," Oxford Economic Papers, Oxford University Press, vol. 64(2), pages 302-322, April.
  11. Falvey, Rod & Poyago-Theotoky, Joanna & Teerasuwannajak, Khemarat Talerngsri, 2013. "Coordination costs and research joint ventures," Economic Modelling, Elsevier, vol. 33(C), pages 965-976.

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