Nicholas S. Vonortas () (Center for International Science and Technology Policy and Department of Economics, The George Washington University, 2013 G Street, N.W., Suite 201, Washington, DC 20052, USA)
Abstract
Research joint ventures (RJVs) have been widely acclaimed for their alleged ability to restore private incentives to undertake R&D. Economists have, however, also sounded the alarm concerning the opportunities RJVs may create for collusion between partners. The danger of anti-competitive behavior increases significantly when repeated R&D collaboration occurs between firms that also "meet" in many product markets. This phenomenon is shown to be present in a large set of U.S.-based RJVs. The question is about the incentive trade-off: Are the alleged advantages of RJVs in terms of enhancing incentives for R&D sufficient to overcome the potential disadvantages in terms of decreasing incentives for R&D due to simultaneous multiproject and multimarket contact? Significant foreign participation, high technological and market uncertainties, and the set up of "porous" RJVs may operate as a check to anti-competitive behavior.
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Find related papers by JEL classification: L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior L4 - Industrial Organization - - Antitrust Issues and Policies O3 - Economic Development, Technological Change, and Growth - - Technological Change
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