IDEAS home Printed from https://ideas.repec.org/a/kap/iaecre/v24y2018i2d10.1007_s11294-018-9683-y.html
   My bibliography  Save this article

Cooperative R&D and Commitment to A Policy of Know-how Trading

Author

Listed:
  • Mário A. P. M. Silva

    (Universidade do Porto)

Abstract

In this paper, we develop a theoretical framework to investigate the impact of adopting a strategy of know-how trading on the degree of research and development (R&D) cooperation. We show that the consequences of cooperation in know-how sharing under the conditions of the model are similar to a policy of cooperation in R&D investments in areas with large spillovers. An industry-wide policy of cooperation among competitors with respect to R&D investment and sharing would simply result in maximal joint profits. This cooperative R&D outcome could be generalized to any degree of spillover other than 100%. In this paper, the commitment to a policy of know-how trading by the participants in an industry is explained by the firm’s attempt to induce the equilibrium of a single industry-wide cooperative research joint venture. In a repeated game framework, we show that pre-commitments by non-cooperative firms to disclose their own know-how to the industry can be effective in inducing cooperative R&D investments by the participants.

Suggested Citation

  • Mário A. P. M. Silva, 2018. "Cooperative R&D and Commitment to A Policy of Know-how Trading," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(2), pages 123-133, May.
    • Handle: RePEc:kap:iaecre:v:24:y:2018:i:2:d:10.1007_s11294-018-9683-y
    DOI: 10.1007/s11294-018-9683-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11294-018-9683-y
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11294-018-9683-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schrader, Stephan, 1991. "Informal technology transfer between firms: Cooperation through information trading," Research Policy, Elsevier, vol. 20(2), pages 153-170, April.
    2. Dahl, Michael S. & Pedersen, Christian O.R., 2004. "Knowledge flows through informal contacts in industrial clusters: myth or reality?," Research Policy, Elsevier, vol. 33(10), pages 1673-1686, December.
    3. Barbara J. Spencer & James A. Brander, 1983. "International R & D Rivalry and Industrial Strategy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 707-722.
    4. Thomas J. Allen, 1984. "Managing the Flow of Technology: Technology Transfer and the Dissemination of Technological Information Within the R&D Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510278, December.
    5. Helsley, Robert W. & Strange, William C., 2004. "Knowledge barter in cities," Journal of Urban Economics, Elsevier, vol. 56(2), pages 327-345, September.
    6. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-1306, December.
    7. Emmanuelle Fauchart & Eric von Hippel, 2008. "Norms-Based Intellectual Property Systems: The Case of French Chefs," Organization Science, INFORMS, vol. 19(2), pages 187-201, April.
    8. Perez-Castrillo, J. David & Sandonis, Joel, 1997. "Disclosure of know-how in research joint ventures," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 51-75, February.
    9. von Hippel, Eric, 1987. "Cooperation between rivals: Informal know-how trading," Research Policy, Elsevier, vol. 16(6), pages 291-302, December.
    10. Kultti, Klaus & Takalo, Tuomas, 1998. "R&D spillovers and information exchange," Economics Letters, Elsevier, vol. 61(1), pages 121-123, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mário Alexandre Patrício Martins da Silva, 2018. "Cooperative R&D And Commitment To A Policy Of Know-How Trading," FEP Working Papers 601, Universidade do Porto, Faculdade de Economia do Porto.
    2. Østergaard, Christian R., 2009. "Knowledge flows through social networks in a cluster: Comparing university and industry links," Structural Change and Economic Dynamics, Elsevier, vol. 20(3), pages 196-210, September.
    3. Franke, Nikolaus & Shah, Sonali, 2003. "How communities support innovative activities: an exploration of assistance and sharing among end-users," Research Policy, Elsevier, vol. 32(1), pages 157-178, January.
    4. Bonte, Werner & Keilbach, Max, 2005. "Concubinage or marriage? Informal and formal cooperations for innovation," International Journal of Industrial Organization, Elsevier, vol. 23(3-4), pages 279-302, April.
    5. Haeussler, Carolin, 2011. "Information-sharing in academia and the industry: A comparative study," Research Policy, Elsevier, vol. 40(1), pages 105-122, February.
    6. Rosenfeld, Martin T. W. & Hornych, Christoph, 2021. "Wie vernetzt sind die privaten Firmen in Mitteldeutschland? Räumliche Muster der Kooperation im Rahmen "Formeller Unternehmensnetzwerke" (FUN)," Arbeitsberichte der ARL: Aufsätze, in: Rosenfeld, Martin T. W. & Stefansky, Andreas (ed.), "Metropolregion Mitteldeutschland" aus raumwissenschaftlicher Sicht, volume 30, pages 96-126, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    7. Enrica Imbert & Piergiuseppe Morone & Francesca Bigi, 2019. "Assessing the potential of social enterprises through social network analysis - Evidence from Albania," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1211-1239, September.
    8. Beaudry, Catherine & Schiffauerova, Andrea, 2011. "Impacts of collaboration and network indicators on patent quality: The case of Canadian nanotechnology innovation," European Management Journal, Elsevier, vol. 29(5), pages 362-376.
    9. Mu, Qing & Lee, Keun, 2005. "Knowledge diffusion, market segmentation and technological catch-up: The case of the telecommunication industry in China," Research Policy, Elsevier, vol. 34(6), pages 759-783, August.
    10. Henkel, Joachim, 2006. "Selective revealing in open innovation processes: The case of embedded Linux," Research Policy, Elsevier, vol. 35(7), pages 953-969, September.
    11. Hans Berends & Elco van Burg & Erik M. van Raaij, 2011. "Contacts and Contracts: Cross-Level Network Dynamics in the Development of an Aircraft Material," Organization Science, INFORMS, vol. 22(4), pages 940-960, August.
    12. Pierre-Alexandre Balland & José Antonio Belso-Martínez & Andrea Morrison, 2014. "The Dynamics of Technical and Business Networks in Industrial Clusters: Embeddedness, status or proximity?," Papers in Evolutionary Economic Geography (PEEG) 1412, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2014.
    13. Sattler, Henrik & Schrader, Stephan & Lüthje, Christian, 2003. "Informal cooperation in the US and Germany: cooperative managerial capitalism vs. competitive managerial capitalism in interfirm information trading," International Business Review, Elsevier, vol. 12(3), pages 273-295, June.
    14. Schwartz, Michael & Hornych, Christoph, 2010. "Informal networking: An overview of the literature and an agenda for future research," Jena Contributions to Economic Research 2010,1, Ernst-Abbe-Hochschule Jena – University of Applied Sciences, Department of Business Administration.
    15. Severinov,S., 1999. "On information sharing and incentives in R&D," Working papers 26, Wisconsin Madison - Social Systems.
    16. M. Pilar Socorro, 2003. "Optimal technology policy: subsidies versus monitoring," UFAE and IAE Working Papers 570.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    17. Christian R. Østergaard, 2007. "Knowledge Flows Through Social Networks in a Cluster Interfirm versus University-Industry Contacts," DRUID Working Papers 07-19, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    18. Tristan L. Botelho, 2018. "Here’s an Opportunity: Knowledge Sharing Among Competitors as a Response to Buy-in Uncertainty," Organization Science, INFORMS, vol. 29(6), pages 1033-1055, December.
    19. Haeussler, Carolin, 2009. "The Economics of Knowledge Regulation: An Empirical Analysis of Knowledge Flows," Discussion Papers in Business Administration 8971, University of Munich, Munich School of Management.
    20. Dahl, Michael S. & Pedersen, Christian O.R., 2004. "Knowledge flows through informal contacts in industrial clusters: myth or reality?," Research Policy, Elsevier, vol. 33(10), pages 1673-1686, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iaecre:v:24:y:2018:i:2:d:10.1007_s11294-018-9683-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.