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Size of RJVs with partial cooperation in product development

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  • Bourreau, Marc
  • Doğan, Pınar
  • Manant, Matthieu

Abstract

In this paper, we consider Research Joint Ventures (RJVs) that are set up to develop product components. We propose an n-firm oligopoly model to study the effect of the degree of cooperation in product development (i.e., the number of jointly developed product components) on the size of the RJV (i.e., the number of RJV participants). We assume that a higher degree of cooperation in product development restricts the firms’ ability to differentiate their products, and hence intensifies competition among the participating firms. We find that the equilibrium size of the RJV can vary non-monotonically with the degree of cooperation. If the degree of product differentiation is not very sensitive to the degree of cooperation, then the RJV is industry-wide.

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  • Bourreau, Marc & Doğan, Pınar & Manant, Matthieu, 2016. "Size of RJVs with partial cooperation in product development," International Journal of Industrial Organization, Elsevier, vol. 46(C), pages 77-106.
    • Handle: RePEc:eee:indorg:v:46:y:2016:i:c:p:77-106
    DOI: 10.1016/j.ijindorg.2016.04.004
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    Cited by:

    1. Karbowski, Adam, 2019. "Cooperative and non-cooperative R&D in product innovation and firm performance," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(6), pages 1121-1142.
    2. Wu, Cheng-Han & Kao, Yi-Jhe, 2018. "Cooperation regarding technology development in a closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 267(2), pages 523-539.
    3. Natália L. Figueiredo & João J. M. Ferreira, 2022. "More than meets the partner: a systematic review and agenda for University–Industry cooperation," Management Review Quarterly, Springer, vol. 72(1), pages 231-273, February.
    4. Michal Ramsza & Adam Karbowski & Tadeusz Platkowski, 2021. "Process R&D investment and social dilemmas," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(3), pages 315-336, September.
    5. Adam Karbowski & Jacek Prokop, 2018. "R&D activities of enterprises, product market leadership, and collusion," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 36(2), pages 735-753.

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    More about this item

    Keywords

    R&D cooperation; RJV; Product development;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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