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International R&D collaboration networks

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  • SONG, Huasheng
  • VANNETELBOSCH, Vincent

Abstract

We reconsider Goyal and Moraga-Gonzalez [Rand J. of Econ. 32 (2001), 686-707] model of strategic networks in order to analyze how government policies (e.g. subsidies) will affect the stability and efficiency of networks of R&D collaboration among three firms located in different countries. A conflict between stability and efficiency is likely to occur. When governments cannot subsidize R&D, this conflict will occur if public spillovers are not very small. However, when governments can subsidize R&D, the likelihood of a conflict is considerably reduced. Indeed, a conflict will arise only if public spillovers are very small or quite large.

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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2005040.

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Date of creation: 00 Jun 2005
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Handle: RePEc:cor:louvco:2005040

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Keywords: networks; R&D collaboration; subsidy;

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References

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  1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December.
  2. Matthew O. Jackson, 2002. "The Stability and Efficiency of Economic and Social Networks," Microeconomics 0211011, EconWPA.
  3. Sanjeev Goyal & Jose Luis Moraga, 2000. "R&D Networks," Tinbergen Institute Discussion Papers 00-075/1, Tinbergen Institute.
  4. Brander, James A., 1995. "Strategic trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455 Elsevier.
  5. Hagedoorn, John, 2002. "Inter-firm R&D partnerships: an overview of major trends and patterns since 1960," Research Policy, Elsevier, vol. 31(4), pages 477-492, May.
  6. Rabah Amir, 1998. "Modelling Imperfectly Appropriable R&D via Spillovers," CIE Discussion Papers 1998-07, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
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Cited by:
  1. Lorenzo Zirulia, 2006. "Industry profit maximizing R and D networks," Economics Bulletin, AccessEcon, vol. 12(1), pages 1-6.
  2. König, Michael & Liu, Xiaodong & Zenou, Yves, 2014. "R&D Networks: Theory, Empirics and Policy Implications," CEPR Discussion Papers 9872, C.E.P.R. Discussion Papers.
  3. Mizuno, Keizo, 2013. "Managerial incentives and endogenous coalition formation with externalities," Mathematical Social Sciences, Elsevier, vol. 66(1), pages 33-43.

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